When a person dies, their estate is transferred to their legal heirs or to heirs designated in a legal document called a gift. This is referred to as successionThis process is most often handled by a notary. But how does this unfold? transmission of heritage And how to plan for succession? Here are the main things to know to get a clearer picture.
What is an estate?
Succession refers to the process by which the estate of a deceased person is passed on to his heirsThis transfer can begin once the death certificate has been issued. It is also subject to numerous rules set out in the Civil Code, and must go through a whole series of steps before being finalized.
What are the different types of inheritance?
At the start of any succession process, it is necessary to verify the existence or not of a willA will allows the deceased to specify their wishes regarding the distribution of their assets. If no will has been drawn up, the general rules of inheritance law apply. Defined in Article 734 of the Civil Code, these rules vary depending on the deceased's family situation.
Legal succession
Legal succession occurs when no will has been drawn up or when the will is invalid. It is based on specific rules that define the order of heirs, the rights of the surviving spouse and the distribution of assets. As a general rule, children (and their descendants) have priority asdirect heirsRegardless of their status (If the deceased was married, the surviving spouse is also a primary heir. Their share varies depending on the presence of other heirs at the time of death and the spouses' matrimonial property regime. Next in line are:
- The father and mother of the deceased,
- His brothers and sisters and their descendants,
- Ancestors (grandparents, great-grandparents…),
- Collateral relatives (uncles, aunts, cousins…),
The closest heirs in degree of kinship inherit, excluding the others.
Genealogists can be commissioned to find very distant heirs.
Testamentary succession
If the deceased had written a will during their lifetime, they could have bequeathed their assets to beneficiaries of their choice, who could be third parties or heirs. In France, the hereditary reserve This allows for the protection of certain heirs. It is a portion of the estate that goes to the forced heirs, namely the children, and failing that, the surviving spouse. quota available, i.e. the remaining share after deduction of the reserved portion, can then be freely distributed.
Is it absolutely necessary to use a notary?
Involving a notary in settling an estate is compulsory when :
- The estate includes at least one property, regardless of its value.
- The estate assets are equal to or greater than 5,000 euros.
- The deceased wrote a will, entered into a marriage contract, has a safe deposit box at the bank, or made one or more donations.
While it is possible to settle an estate without using a notary, only the most complex estates require it. modest and simple are concerned.
How does an inheritance process work?
After the opening of the estate and the identification of the heirs, four other key steps are to be followed either by the notary or by the heirs, to close the procedures and obtain (or not) the inheritance of the deceased.
The steps to follow in settling an estate
Asset valuation
First, the notary must determine the estate assetsThis means taking inventory of the deceased's assets on the day of their death. This requires considering both gross assets (real estate, bank accounts, savings accounts, vehicles, etc.) and liabilities, namely the deceased's debts (loans, taxes, estate planning fees, etc.).
Acceptance or renunciation of the inheritance
Once the estate's assets have been determined, the heirs face three choices. The first is to accept purely and simply the succession, by becoming owners of their share of the inheritance and settling the debts of the deceased. The second is acceptance up to the amount of the net assets The inheritance is accepted, but debts will only be payable up to the value of the deceased's assets. Finally, the last option is the renunciation : the heirs refuse the inheritance to which they would be entitled.
The inheritance declaration
After the heirs have been chosen, the notary proceeds with the wealth distributionEach heir receives an inheritance tax return which they must send to the tax office within 6 months (if the deceased was domiciled in metropolitan France) or 12 months (if they resided overseas or abroad).
The division of assets
Finally, the heirs divide the assets in whole or in part. They can also choose not to divide them and to to remain in joint ownershipIn the event of a dispute or claim, the matter must be referred to the judicial court. This procedure will entail additional delays and costs.
Inheritance: how much does it cost?
The cost of an inheritance depends on the number of notarial deeds and the value of the assets transferred. Before initiating any proceedings, you can request a detailed quote the amounts of fees to be paid or a projected statement of the cost of the operation. Furthermore, droits of succession These amounts will be payable to the tax authorities. Allowances and exemptions may be available depending on the circumstances.
How to prepare your estate while you are still alive?
Many tools are available for plan your succession in advanceGifts, gifts with division of property, gifts between spouses, life insurance policies, marriage contracts, wills… Planning ahead in these areas will allow you to:
- to minimize the risk of conflicts between heirs,
- to better choose what will happen to your assets,
- to give an early boost to certain relatives,
- to reduce the amount of inheritance tax…
Therefore, do not hesitate to call upon a notary to carry out a succession study and obtain professional advice.
Regardless of the deceased's situation, the value and composition of their assets, inheritance remains a a highly regulated process which is based on numerous legal and tax rules. Whether it's preparing your own estate or managing an inheritance following a death, it's best to take the time to research and seek advice.
