Inheritance – Wealth Management CERN D. GARIOUD – F. CAMPAGNE.

Inheritance – Wealth Management

CERN D. GARIOUD – F. CAMPAGNE

18 mars 2010 CERN : Présentation Prisme Conseils. 2

Plan

InheritancesQuestionsWealth management (estate

development)Questions & answers


Inheritance

French inheritanceInternational inheritanceIdentification of the Marriage SettlementCase studies :

DivorceCohabitation

Our advices


Example used

English man married with a french woman, without prenuptial agreement.

They live in France, in a house they purchased together.

They have 2 children, both live in France. Wealth :

House : 500 K Savings : 300 K


French inheritance

After death, 4 steps :Who are the heirs ?What is part of the estate in case of

inheritance ?Tax returnShare the inheritance


Death – opening place of the inheritance

Main residence of the deceased and his spouse,

Not necessarily the place of death…(hospital, holidays…)


French inheritance – Who are the heirs ?

Is there a Will ? Devolution of property

Rule : depends on country

Privileged heirs or not (in case of will)

Rank heirs France Other

Spouse 2 1

Children 1 2

Others 3 3


Legal – Three key words

Usufruct : Ability to live or rentBare ownership : own the object, without

the right to use it.Full ownership : both !


French inheritance – what is part of the estate in this case?

The assets :The real estates,The liquid assets,The investments (not investment policies

insurance)The liabilities :

The debts The anterior gifts


French inheritance :what is part of the estate ?

Our example : Real estate 500 K / 2 = 250Savings 300 K / 2 = 150

Total : 400 K


French inheritance : Share of heirs

Remember example : one spouse, two children.

Without will With will

Option 1 Option 2 Between And

Spouse 100 %

USUFRUCT

25 % FO 0 75 % Usuf. +

25 % FO

Each child

50 % Bare Ownership.

37,5% FO 50 % FO 37,5 %

Bare Ownership


French inheritance : Tax return

Inheritance taxes depend on the part of each heir,

6 months to pay taxes after death’s month.


French inheritance : the share of the estate

take into account the wishes of each heirPossible compensations, rewards.Can take a long time, even few years

depending on the agreement between heirs


Inheritance


DivorceCohabitation

Our advice


International inheritance

Situations linked to international inheritance

Principles


International inheritance : definition

An inheritance is international when : There are estates in more than one country,ORDeceased and at least one heir do not live

in the same country.


International inheritance : principles

The same as for France,2 steps : Civil and fiscal (aspects)

Legal topics : Who are the potential heirs ?What is part of the estate in case of inheritance?

Fiscal topics : How much is the inheritance tax ?


Inheritance


DivorceCohabitation

Our advice


Which marriage settlement

Is there a prenuptial agreement ? Otherwise, one has to refer to « The Convention of La

Haye » : Wedding location First location of the newly weds

Example : France : Community of all wealth created since

wedding inception UK : Existence of 2 distinct estates Switzerland : 2 distinct estates with an indemnity

process in case of termination.


International inheritance : tax

Existence or not of a bilateral tax agreement between the 2 countries.

Generally speaking : Real estate : in the country where it is located, Non real estate is taxed in the country of the

deceased person

Rates : Variable depending on the countries and the

relationships with the heirs


Inheritance


DivorceCohabitation

Our advice


Case of divorce

The situation will depend upon the existence of prenuptial agreement and upon the marriage settlement

What is the origin of the assets ?


Case of cohabitation

Civil partnership (or similar) It depends on the country, and the way

they consider the partnership.Persons in cohabitation :

Generally speaking : Not concerned by the inheritance,Max inheritance tax if there is a will !


practical advices

Organize your inheritance before you die (share, will…)

For the will : write it alone, or with the help of a notary.

Organize proxies before you have need it, Protect your spouse with an investment policy

insurance or life insurance. And if you need advices…


Our advice

Wishfull thinking is not a legal right !Think, And be proactive !


Questions ?


Plan

InheritancesQuestionsWealth management (estate

development)Questions & answers


Wealth management

Estate planningRealistic objectivesPossible keysConclusion


Estate planning

Establish desired objectivesAnalyse the current situationWealth management proposedImplementation


Desired objectives / 1

Create additional revenuesNowLater (post retirement)

Dispose of savings :Graving safely,With additional risk

Develop your wealthOptimize taxes (rent, wealth tax…)


Desired objectives / 2

SCI : Spousal protection, Then children. Can have a tax advantage in international asset More binding

The investment policy insurance Very advantageous, Especially before 70 years old Can protect a partner or the person of his choice


Possible keys

Conceivable keys

Imm

ediate revenues

Futures revenues

Savings

Wealth

Less taxes

Protect the spouse

Real estate :

Acquisition of the main residence

Real estate :

Investment in rental property

Investments :

Insurance life products

Financial assets

Beneficed tax exemption regime


Conclusion

Enjoy your life !Each case is different,Better act than take the burden…


Questions ?

We remain available after the presentation,

Thank you for your attention.

Inheritance – Wealth Management CERN D. GARIOUD – F. CAMPAGNE.

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