When heritage crosses borders
When heritage crosses borders
"To pick up on your last point, I have the following question: as a French couple living in France, we have an only son who is a French national but lives and works in Switzerland. When we die, how will the estate be dealt with? "
Roger, France
When a situation arises involving people living in several countries, it is necessary to consider the application of an international convention. As we explained last week, there is no such convention between Switzerland and France in relation to inheritance. As for the Lugano Convention, which governs various civil and commercial matters between States that have signed up to it, it excludes successions from its scope. It is therefore necessary to refer to the domestic law of each country concerned for matters relating to inheritance.
The main criterion for opening an estate in France is the same as in Switzerland: the domicile of the deceased. Swiss law applies when the deceased's last domicile was in Switzerland, in accordance with Article 90 of the Private International Law Act (LDIP). Article 720 of the French Civil Code provides a similar rule for the application of French law. In the case you have described, since only your son is domiciled in Switzerland, your estate would therefore start in France.
Article 750ter of the General Tax Code confirms that a deceased person whose tax domicile is in France is subject to French inheritance tax. This duty can be as high as 45% for heirs in a direct line, such as your son, depending on the value of the estate.
However, according to art. 88 LDIP, if a foreigner domiciled abroad at the time of his death leaves assets in Switzerland, the Swiss judicial or administrative authorities of the place where they are located are competent to settle the part of the estate located in Switzerland insofar as the foreign authorities do not deal with it. Inheritance tax is levied exclusively at cantonal level. In Geneva, Article 4 of the law on inheritance tax stipulates that inheritance tax is only payable on estates opened abroad in specific situations, for example when there is real estate located in the canton. Finally, you should know that since 2013, thanks to the new article 6A of the same law, relatives in the direct line are exempt from inheritance tax in the canton of Geneva.
