When a person dies, his patrimony is passed on and divided among the heirs. The latter must pay a tax on their share: inheritance tax. Do you want to know how much you have to pay?
From declaration of succession to estate assets
A death is a painful ordeal for the family and the entourage of the deceased. Yet, the days and weeks that follow, the question of inheritance arises if the deceased left behind a heritage. This heritage must be estimated, the heirs identified. This process corresponds to the declaration of succession. In France, it must be performed within 6 months of death. The intervention of a notary is strongly recommended or even mandatory in some cases, for example in case of marriage contract or if the property includes a property. This statement contains a lot of valuable information such as the identity of the deceased and the heirs, the deceased's civil status, debts, donations and a will.
The estate that the deceased leaves behind is also known as estate assets or estate assets. It is the basis for calculating inheritance tax after the deduction (s). To calculate it, two concepts must be distinguished:
- Gross assets: real estate (houses, apartments, business premises), securities, bank accounts, vehicles, shares, valuables (jewelery, works of art).
- Net assets: the total obtained after subtracting from the gross assets the debts left by the deceased, taxes, taxes and funeral expenses.
Estate assets are net assets.
The allowances are amounts that are exempt from the inheritance tax, that is inheritance tax. They must be deducted from the inheritance before the calculation of inheritance tax. The amount of the deduction depends essentially on the family relationship between the deceased and the beneficiary:
- Children and ascendants (parents, grandparents): € 100,000
- Grandchildren and great grandchildren: € 1,594
- Brothers and sisters: € 15,932
- Nephews and nieces: 7,967 €
- Other heirs: € 1,594
An additional allowance of € 159,325 together with other allowances is applied if the beneficiary is disabled.
Important: The spouses and partners of Pacs benefit from an exemption. They do not have to pay death duties.
After the deduction of the deductions, the inheritance tax is calculated from the sum remaining. The scale set up by the tax administration is said to be progressive because the tax rate increases according to the part of the inheritance:
- Share of inheritance lower than 8 072 euros: 5%
- Share of inheritance from 8 072 euros to 12 109 euros: 10%
- Share of inheritance from 12,109 euros to 15,932 euros: 15%
- Share of estate from 15,932 euros to 552,324 euros: 20%
- Share of estate from 552,324 euros to 902,838 euros: 30%
- Share of estate from 902,838 euros to 1,805,677 euros: 40%
- Share of inheritance higher than 1 805 677 euros: 45%
This scale only concerns heirs in a direct line. The tax rate for siblings is 35% (inheritance less than € 24,430) or 45% (more than € 24,430). It amounts to 55% for parents up to 4th degree, and 60% for all other heirs.
After calculating the estate assets, it is established that the share of inheritance that belongs to the three children of a father who has just died amounts to € 150,000. To this sum, it is necessary first of all to subtract an abatement of 100 000 €: 150 000 - 100 000 = 50 000.
The inheritance tax must therefore be calculated from the remaining sum of € 50,000. This share of the estate is in the fourth tranche (between € 15,932 and € 552,324). The tax rate is therefore 20%.
Calculation of death duties: 50,000 x 20% = € 10,000.
Simulator for calculating inheritance rights
The case mentioned previously is relatively simple. Very often, inheritance tax calculations are much more complex for a number of reasons, including:
- Heritage value difficult to calculate
- Heirs difficult to identify
- Heirs refusing to pay their inheritance tax or selling their share of real estate
- Donations made
- Presence of a will
- Estate Assets and Estate Tax Difficult to Calculate
- Several forms to complete and tedious administrative procedures to perform
For all these reasons, recourse to a notary is often wise to deal with inheritance issues.
To help individuals estimate the amount of tax on their share of inheritance, the tax administration has deployed a calculator of inheritance tax. To use it, just click on this link: https://www.service-public.fr/simulateur/calcul/droits-succession.
This is a rough calculation, obtained online for free and in minutes. The simulator is divided into four parts: You (the heir), the deceased, the amount of the estate and inheritance tax. Answer the questions asked, fill in the information requested and the simulator will calculate for you your inheritance tax taking into account all the elements necessary for this calculation: your relationship with the deceased, his estate, estate assets, allowances , the tax scale ...
Estate Tax Regulations
Payment of inheritance tax may be made by check, delivery of buildings, collectibles or works of art, or in cash if the amount does not exceed 300 €.