Understand how to calculate the reserved share and available quota in estate succession according to French law, including the rights of children and tax implications.
Extract
[...] Calculating the reserved share and the available quota : The total estate of Mr. Turpin amounts to : - Real estate: 600,000 ? - Movable estate: 615,000 ? - Total: 1,223,000 ? - Reserved inheritance: 2/3×1,223,000= 815,833.33 ? - Available amount: 1/3× 1,223,000 = 407,666.67 ? Application of the rules: - Each child must receive at least an equal share of the reserved inheritance, namely 815,833.33 - The remaining 407,666.67 ? can be freely allocated by will. Succession Rights Scale Pursuant to Article 779 of the General Tax Code each child benefits from a deduction of ?100,000 on the inheritance share received. [...]
[...] Value received after rebalancing: ?815,833.33 (heritable reserve) + a part of the available quota. ? After deduction: ?715,833.33. ? Applicable rate to 10% bracket): ?35,791.67. The donation by will in favor of the nephew According to Article 920 of the Civil Code, liberalities (bequests or donations) that affect the reserved heritage are reducible. - Pierre received a bequest of ?100,000, but his reserved share cannot exceed ?407,666.67 (less than half of the reserved heritage). Under these conditions, despite the high amount of the bequest, it is unlikely to be requalified as a donation. [...]
