New French Succession Rules: What UK Property Owners Need to Know in 2026

French succession law has shifted significantly in recent years, and for UK families who own property in France, the changes have meaningful implications. From the November 2021 “loi sur le rapport” reforms to ongoing Brexit-related tax adjustments, the rules governing how French property is passed on to heirs have become more complex, not simpler.

If you own a French property, are planning to buy one, or have inherited from a French estate, this guide explains what’s changed, what your options are, and — equally importantly — how cross-border inheritances affect currency strategy when significant euro amounts need converting to sterling.

This is not legal or tax advice. It’s a plain-English summary of the recent changes, written to help UK property owners ask better questions of their French notaire or succession lawyer. We’ll also cover the practical FX considerations that often get overlooked until inheritance funds need transferring.

What’s Changed: The 2021 French Succession Reform

In November 2021, France enacted a law (commonly referred to as the “loi du 24 août 2021” or “loi Confortant le respect des principes de la République”) that significantly reinforced French forced heirship rules — and curtailed the ability of UK and other foreign nationals to use their home country’s inheritance law for French assets.

The Background: EU Succession Regulation 650/2012

Until 2021, UK property owners in France could rely on EU Succession Regulation 650/2012 (commonly known as “Brussels IV”) to elect English or Scots law to govern the succession of their French assets via their UK Will. This meant UK testators could leave their French property to whomever they chose — including a surviving spouse alone — bypassing France’s traditional forced heirship rules.

What the 2021 Law Changed

The new French law introduced what’s often called the “prélèvement compensatoire” — a compensatory levy. Under this provision, if French law would have given forced heirs (typically children) a reserved share of an estate, and that share has been reduced or eliminated by foreign law applied via Brussels IV, the children can claim compensation from the French assets.

In practical terms, this means UK property owners who try to disinherit their children through an English-law Will may find those children can still claim a share of the French property by exercising their rights under the new compensatory levy.

Why This Matters for UK Property Owners

The change particularly affects:

• UK couples in second marriages with children from previous relationships
• UK property owners who want to leave everything to their surviving spouse
• Blended families with complex inheritance preferences
• UK nationals who chose English/Scots succession law for their French estate
• Anyone planning to disinherit a child from their French property

Real-World Implications

Consider a common scenario: A UK couple in their 60s owns a €1.2 million villa in Provence. They have children from previous marriages. Under their English-law Will, they leave everything to each other. Pre-2021, this would have been respected for the French property under Brussels IV.

Under the new rules, the children from previous marriages can claim compensation against the French property when the first spouse dies. For families that didn’t plan for this, it can mean:

• Forced sales of the French property to satisfy claims
• Significant legal costs disputing the claims
• Family conflict that could have been avoided with proper planning
• Unexpected tax liabilities at vulnerable times

Understanding French Forced Heirship (Réserve Héréditaire)

France has long had a system of forced heirship that ring-fences a portion of an estate for the children. Under standard French succession law:

The Reserved Portion (Réserve)

• With 1 child: the child must receive at least 1/2 of the estate
• With 2 children: they must collectively receive at least 2/3
• With 3+ children: they must collectively receive at least 3/4

The Available Portion (Quotité Disponible)

The remainder — known as the “quotité disponible” — can be left freely. This is the portion you can leave to a spouse, friend, charity, or anyone else.

How the 2021 Change Interacts With This

Before 2021, Brussels IV let UK testators bypass this entirely for their French assets. After 2021, French children can claim compensation when the reserved portion has been reduced by foreign law. So while you can still use English/Scots law in your Will, the practical protection it offers is significantly weaker.

French Inheritance Tax Rates and Recent Updates

Separately from the succession law changes, French inheritance tax rates remain a major consideration for UK families with French assets. Rates depend on the relationship between the deceased and the beneficiary:

Children and Parents

• Tax-free allowance: €100,000 per child
• Rates: 5% to 45% on amounts above the allowance
• Top rate (45%) applies to amounts over €1.8 million per child

Spouses and Civil Partners (PACS)

• Generally exempt from French inheritance tax (since 2007)

Siblings

• Tax-free allowance: €15,932
• Rates: 35% to 45%

Nephews and Nieces

• Tax-free allowance: €7,967
• Rates: 55%

Unrelated Beneficiaries (Including Unmarried Partners)

• Tax-free allowance: €1,594
• Rate: 60% (one of the highest inheritance tax rates in Europe)

This last point is critical: if you’re in an unmarried relationship and own French property together, leaving it to your partner triggers a punitive 60% inheritance tax rate on most of the value — regardless of how long you’ve been together.

The Currency Angle: When French Inheritances Cross the Channel

French inheritances and succession events often trigger significant currency conversions. Whether the estate is liquidated and proceeds repatriated to the UK, or beneficiaries sell their inherited share, the FX strategy matters as much as the legal one.

Typical Scenarios Involving Currency

1. UK Beneficiary Receives Cash from French Estate

After French inheritance tax is paid, beneficiaries often receive distributions in euros. For estates of €500,000+, the difference between using a UK high-street bank versus a specialist FX provider can be £5,000-£15,000+ on conversion.

2. French Property Sold to Settle the Estate

When a French property is sold to distribute proceeds among multiple heirs, the timing of conversion matters. GBP/EUR can move 3-5% in a single month — on a €1 million property sale, that’s a £30,000-£50,000 swing in what each UK beneficiary actually receives.

3. Settling Forced Heirship Compensation Claims

Under the new rules, where children claim compensation against French assets, those payments may need to be converted from euros to sterling (or vice versa). Forward contracts can lock in today’s rate while the legal process resolves.

4. UK Beneficiary Buys Out Co-Heirs

In many family situations, one UK beneficiary wants to retain the French property while buying out siblings. This often requires substantial GBP-to-EUR conversions — sometimes hundreds of thousands of pounds. The savings on these transfers via a specialist FX provider can run into tens of thousands.

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How UK Property Owners in France Can Protect Themselves

1. Review Your Will Urgently if You Own French Property

If your Will was drafted before the 2021 changes — or if you simply haven’t reviewed it recently — it may no longer achieve what you intended for your French assets. Speak to a UK solicitor with cross-border expertise, alongside a French notaire.

2. Consider Lifetime Gifts (Donations)

French law allows lifetime gifts (donations) that can reduce later inheritance tax exposure. Each parent can give €100,000 tax-free to each child every 15 years. Used strategically over time, this can significantly reduce eventual estate value.

3. Look at Marriage Contract Options

French law offers several marriage contract structures that affect succession. A change to community of property (“communauté universelle avec clause d’attribution intégrale”) can simplify spousal inheritance, though it has implications for children’s rights.

4. Use of a Tontine Clause

Properties owned “en tontine” pass entirely to the surviving owner on death of the first — bypassing French succession rules. This isn’t suitable for every situation but can work well for couples without children.

5. SCI Holding Structure

Holding French property through a Société Civile Immobilière (SCI) — a French property holding company — can offer succession planning advantages. The shares can be gifted progressively, smoothing transfer over time.

6. Plan Currency Strategy Alongside Legal Planning

If inheritances or property sales are anticipated, structuring an FX strategy around the timeline protects against currency volatility. Forward contracts can lock in today’s rate for transfers up to 12 months ahead.

Brexit and French Succession: What Changed and What Didn’t

Brexit didn’t directly change French succession law for UK nationals. The EU Succession Regulation (Brussels IV) still applies to French succession of UK nationals — it’s an instrument of French law, not just an EU regulation.

However, Brexit has affected other elements:

• UK nationals are now non-EU residents for some French tax purposes
• Withholding tax on certain inheritance distributions has changed
• Some specific inheritance allowances and exemptions have been adjusted
• Practical issues like obtaining French residency documents have become more complex

Worked Example: How the New Rules Affect a Typical UK Family

Robert and Sarah, both UK nationals in their late 60s, own a €900,000 holiday home in the Dordogne. Each has two children from previous marriages.

Their Plan (Pre-2021 Thinking)

Use an English-law Will to leave everything to each other on the first death, then split equally between all four children on the second death.

Under Old Rules (Brussels IV)

This would have been respected for the French property. The survivor inherits the lot. The four children share equally on the second death.

Under New Rules (Post-2021)

When Robert dies first, his two children can claim a compensatory levy against the French property. The amount is calculated based on what their French reserved share would have been — potentially around 1/3 of Robert’s half of the property (around €150,000 between them).

This creates an immediate liquidity issue. Sarah may need to:

• Sell the property to satisfy the claim
• Take out a mortgage on the property to pay the children
• Use other savings to settle the claim
• Enter into formal dispute resolution

None of which is what Robert and Sarah originally planned.

What Better Planning Would Have Looked Like

• Holding the property through an SCI structure with planned share transfers
• Using lifetime gifts to children to reduce later disputes
• Considering tontine clauses (though limited in their situation)
• Setting aside liquid assets specifically earmarked for forced heirship claims
• Working with both UK and French legal advisers from the outset

Frequently Asked Questions

What are the new French succession rules and when did they come into effect?

The most significant recent change is the November 2021 French law that introduced a “compensatory levy” (prélèvement compensatoire) for French succession. This allows forced heirs (typically children) to claim compensation against French assets when foreign succession law has reduced their reserved share. The change effectively weakens the protection that EU Succession Regulation 650/2012 (“Brussels IV”) previously provided to UK property owners using English/Scots law via their Will.

Do French forced heirship rules apply to UK nationals?

Under EU Succession Regulation 650/2012, UK nationals can still elect English or Scots law to govern the succession of their French assets via their Will. However, the 2021 French law introduced a compensatory levy that allows forced heirs to claim compensation when their reserved share has been reduced by foreign law. So while UK law can still apply technically, French forced heirship principles can effectively be reasserted through the compensation mechanism.

What is the inheritance tax in France for UK residents?

French inheritance tax depends on the relationship between the deceased and the beneficiary, with rates ranging from 0% (spouses, civil partners) to 60% (unmarried partners or unrelated beneficiaries). Children receive a €100,000 tax-free allowance each, with rates from 5%-45% above that. Unmarried partners pay 60% on most of the value — a punitive rate that often surprises UK couples. Rates apply regardless of where the heir lives — UK residence doesn’t change French inheritance tax exposure on French assets.

Can I leave my French property to my spouse only and bypass my children?

Pre-2021, this could be achieved by using English/Scots law via your Will under Brussels IV. Post-2021, your children can claim compensation against the French property under the new compensatory levy. So while you can attempt this structure, your children retain a financial right to compensation. Practical planning often involves a combination of marriage contract changes, lifetime gifts, and possibly SCI structures.

How does Brexit affect French succession for UK nationals?

Brexit didn’t directly change French succession law for UK nationals — Brussels IV still applies because it’s now an instrument of French law, not just an EU regulation. However, Brexit has affected related issues including some inheritance tax treatments, withholding tax on distributions, and practical matters like obtaining French residency or tax documents. UK property owners in France should review their succession planning post-Brexit to ensure it still works.

What is a tontine clause and does it solve the new succession problem?

A “clause de tontine” or “pacte tontinier” is a French property ownership structure where the property passes entirely to the surviving co-owner on the death of the first — bypassing succession rules entirely. It can work well for childless couples but has significant restrictions (you can’t easily unwind it, and it has tax implications). It’s not a universal solution for the new rules, but can be useful in specific circumstances.

What is an SCI and can it help with French inheritance planning?

An SCI (Société Civile Immobilière) is a French property holding company. Many UK families use SCIs to hold French property for tax and succession planning reasons. SCI shares can be gifted progressively to children over time, reducing eventual inheritance tax exposure. They also offer some flexibility around the new succession rules, though they’re not a complete shield against forced heirship compensation claims.

How much does it cost to convert a French property inheritance to GBP?

Depends entirely on the provider. UK high-street banks typically charge 1.5-3% above the interbank rate on private client conversions — meaning £5,000-£15,000 hidden cost on a €500,000 inheritance. Specialist FX providers like Lucid charge 0.3-0.8% on transfers of £250,000+, with no transfer fees. For estates of €500,000 and above, the savings versus banks typically run into thousands.

Should I sell my French property before the new succession rules cause problems?

Not necessarily. The new rules create challenges but don’t make French property ownership impossible — they just require proper planning. Many UK families continue to own French property successfully, with updated Wills, lifetime gifting strategies, marriage contract reviews, or SCI structures. The key is to take cross-border legal advice and adjust your planning, not panic-sell.

Who can help me with French succession planning?

You need both UK and French expertise — a UK solicitor familiar with cross-border estates (firms like Stone King, Withers, and Charles Russell Speechlys have published extensively on this) plus a French notaire experienced in international succession. For the currency side of any inheritance transfers, specialist FX providers like Lucid can save substantial amounts versus high-street banks on property sale proceeds or estate distributions.

Related Resources

• UK Pensioners in France: Tax Bill Trap & How to Protect Your Pension
• Buying Property in France for £250k+ Buyers — Our specialist guide for UK buyers
• Selling Property in France — UK Seller’s Guide to CGT and Currency Strategy
• Convert 500,000 Euros to GBP — Currency strategy for large EUR-GBP transfers
• Forward Contracts — Lock in today’s rate for up to 12 months
• Private Client FX — Our core service for transfers of £250k to £20M+

Plan the Currency Side of Your French Inheritance with Lucid

French succession planning is complex enough without unnecessary currency costs eroding the value of what you eventually receive or transfer. Whether you’re navigating new succession rules, repatriating proceeds from a French property sale, settling beneficiary claims across borders, or buying out co-heirs from a French inheritance, the currency strategy deserves the same care as the legal one.

David Huggett, our CISI Chartered FX specialist, has helped UK families structure currency strategies around cross-border inheritances, property sales, and succession events. Book a free, no-commitment consultation to discuss your situation.

Or call Dave directly: 020 8159 2579Important: This article provides general information about French succession law changes and currency considerations. It is not legal, tax, or financial advice. French succession law is complex, evolves over time, and the application of cross-border rules depends on individual circumstances. Always consult appropriately qualified UK solicitors with cross-border expertise and French notaires before making decisions about your estate, Will, or property ownership structures. Lucid Foreign Exchange specialises in currency services for private client transfers of £250,000 and above.