Ashtons Legal Featured in the Latest French Property News

We’re pleased to feature in the latest edition of French Property News.

If you’re buying, selling or managing assets in France, our French Legal Services team provides specialist advice on a range of cross-border legal matters, including property ownership, succession planning and inheritance.

In this edition, Sophie Hearle, answers two questions relating to French property, providing guidance on some of the legal consideration involved.

Read Sophie’s questions and answers below.

“My husband and I own a holiday home in France. We do not have any children and wish to leave the French property to our 7 nieces and nephews when the second of us dies. We are already aware of the French inheritance tax which will be payable. We would like to authorise one person to sell the French property and then distribute the sale proceeds amongst all of the beneficiaries. Is this possible? ”

Yes, it is possible to arrange for one person to handle the sale and distribution of your French property to your seven nieces and nephews, though this requires careful estate planning to ensure your wishes are properly executed.

Under French law, when you leave property to multiple beneficiaries, they typically become co-owners en indivision. This means all of the beneficiaries would need to agree on any decisions regarding the property, including its sale. This can become complicated and time-consuming, particularly when a large number of parties are involved.

The most effective solution is to appoint an executor (exécuteur testamentaire) in your French Will. Your executor could be one of your nieces and nephews, and they can be given broad powers to:

• Take control of the French property upon the death of the second spouse
• Arrange for the property’s maintenance and security during the administration period
• Instruct estate agents and manage the sale process
• Sign the sale deed (acte de vente) on behalf of all beneficiaries
• Receive the sale proceeds
• Distribute the funds equally among all seven beneficiaries according to your wishes

This approach effectively bypasses the need for all seven beneficiaries to be involved in the sale process and avoids the potential complications of the en indivision arrangement.

Your Will must be carefully drafted to clearly grant these specific powers to your executor. The wording needs to be precise to ensure the executor has unambiguous authority to act.

The executor’s mandate typically lasts for two years from the date of death, though this can be extended if necessary. During this period, the executor has a duty to act in the best interests of all beneficiaries and must keep proper accounts of all transactions.

When selecting your exécuteur testamentaire, choose someone who is organised, trustworthy, and ideally has some familiarity with French property transactions and legal procedures.

You might also consider appointing substitute executors in case your first choice is unable or unwilling to act when the time comes. This provides continuity and avoids potential complications.

It is advisable to discuss your intentions with your executor beforehand to ensure they are willing to undertake this responsibility. Managing a French property sale from the UK involves coordinating with notaires, potentially dealing with language barriers, and understanding French conveyancing and succession procedures.

“Before we moved to France we completed Lasting Powers of Attorney in case one of us might lose mental capacity and not be able to manage finances or sell the house. Are these valid in France? ”

A Lasting Power of Attorney (‘LPA’) is valid for use in France, their validity documents in other jurisdictions being governed by an international convention. However, in practice it can be quite onerous.

In the first instance, an LPA will of course be in English, and must be translated into French by a certified translator before it could be relied upon.

In addition, it is reasonable to expect that while an LPA would easily be recognised at an English bank, law firm, or other institution, that would not be the case in France. It follows, therefore, that a formal Legal Opinion from a suitably experienced lawyer in England and Wales would be required to confirm that the document is correctly prepared and registered, to set out what restrictions may apply to it, and who is entitled to act as representative. Inevitably, that Legal Opinion would itself have to be in French.

These steps will appear costly and onerous. While that is indeed the case we are often instructed in such matters. If a house in France needs to be sold and one owner, having lost capacity, had prepared an LPA, then there is unlikely to be much choice.

If they had no such document, however, it would be necessary to seek a court order authorising someone to represent them; that could be either the English or French court, depending on the circumstances.

You may therefore consider establishing the French equivalent of an LPA, known as a Mandat de Protection Future (‘MPF’). This would need to be prepared by a notaire. It may be prudent to ensure that the same people are named as attorney in both documents, to avoid any conflict.

Hopefully, neither the English nor French version would ever be needed. But losing capacity without having prepared them can cause great difficulty for your family.

Read the Latest Edition of French Property News

Take a look at the latest issue to find out more about how Ashtons Legal can support your French legal needs.

Read the full edition here.

If you would like advice on French inheritance or estate planning, our team would be happy to assist.

Contact our French law solicitors today

If you have any questions or would like advice on creating a French Will, cross-border estate planning or buying/selling a French property, please get in touch with our specialist French Legal Services team through this website or by calling 0330 404 0768.