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Life Insurance and Death Insurance: What Are the Differences?

Posted on : October 1, 2025

Confusion between life insurance and death insurance is common. However, they are two very different types of contracts. What characterizes these contracts?

 

How and for what purpose can you take them out? Explanation.

 

Life Insurance: What Are Its Features?

Life insurance is a medium- to long-term savings product.

 

Once the contract is opened with an initial deposit, you can make contributions (also called premiums), regular or not, without any limit on the amount.

 

When the contract ends, the beneficiaries (yourself or a third party designated in the contract) receive the accumulated capital or a lifetime annuity.

 

Life insurance is also an interesting investment tool for estate planning. It allows you to designate one or more beneficiaries through the beneficiary clause.

 

Contracts taken out in the name of a spouse, civil union partner (PACS), certain non-profit organizations, or in favor of siblings, may under certain conditions be exempt from inheritance tax.

 

In other cases, the capital may be taxable depending on:

  • the date the contract was opened,
  • the date of payments,
  • your age at the time of payments,
  • the amount of capital paid to beneficiaries.

 

What Are the Main Types of Life Insurance Contracts?

When you take out life insurance, you can choose between two main types of contracts:

  • Single-asset contracts, also called euro funds,
  • Multi-asset contracts, also called unit-linked contracts.

 

Contributions made to a euro fund are guaranteed, but the return is limited.

 

Multi-asset contracts usually include a portion in euro funds and a portion in unit-linked investments. Unit-linked life insurance is riskier than euro funds.
Important: there is no guarantee you will get back your full investment if you choose unit-linked funds.

 

You may suffer capital losses depending on financial market fluctuations. That’s why it’s recommended to invest over the long term to smooth out market volatility and maximize potential returns.

 

Investing in unit-linked funds gives you access to a wide range of financial instruments with varying degrees of volatility.

 

Thus, before investing in unit-linked funds, it’s important to determine your risk profile with your bank advisor or insurance company, your wealth goals, and your investment horizon.

 

Unit-linked funds are typically invested in shares of mutual funds (UCITS) that hold stocks or bonds. Your payments can also be invested in property funds through real estate investment companies (SCPI).

 

Life Insurance: A Flexible Investment

Life insurance is notable for its flexibility.

 

When you take out a life insurance policy, you are free to request partial redemptions or a full withdrawal of your accumulated capital at any time.

 

This option is subject to the beneficiary’s acceptance (which may be a different person than the contract holder). The beneficiary must provide written consent if they have accepted their designation according to the legal procedure.

 

A full withdrawal terminates the contract. You can also ask your insurer for a loan (advance) on your contract. This advance is a loan granted by the insurance company, and interest is charged at the rate set in the contract.

 

What Are the Tax Rules for Life Insurance?

Life insurance is attractive in part due to its tax advantages. Only gains are taxable when you make a withdrawal (partial or full).

 

The taxation of life insurance depends on several factors:

 

  • the date of premium payments,
  • and the contract’s duration.

 

Since September 27, 2017, gains from premiums paid after that date are subject to a flat tax (PFU) of 30% if the contract is less than eight years old.

 

After eight years, you benefit from an annual tax exemption of €4,600 (or €9,200 for married or civil union couples filing jointly), and a reduced tax rate of 24.7% on gains (income tax and social contributions) if the total premiums paid are less than €150,000.

 

Tax on Gains from Premiums Paid Before September 27, 2017

For premiums paid before this date, your gains are subject to either:

 

  • the progressive income tax scale via your tax return, or
  • a withholding flat tax (PFL) if you choose it.

 

In all cases, social contributions of 17.2% also apply.

 

Contract Age Taxation
0 to 4 years Income tax scale or PFL at 35% + 17.2% social contributions
4 to 8 years Income tax scale or PFL at 15% + 17.2% social contributions
Over 8 years Income tax scale or PFL at 7.5% + 17.2% social contributions

Tax on Gains from Premiums Paid After September 27, 2017

For premiums paid after this date, gains are taxed based on the contract’s duration and the amount of premiums paid.

 

Contract Age Taxation
0–8 years Flat tax (PFU): 30% (= 12.8% income tax + 17.2% social contributions)
Over 8 years with premiums < €150,000 7.5% income tax + 17.2% social contributions
Over 8 years with premiums > €150,000 PFU: 30% (12.8% + 17.2%)

 

The €150,000 limit applies to all your life insurance contracts combined.

 

According to the tax authorities, when your total premiums across all contracts exceed €150,000, only the portion of gains related to the first €150,000 in premiums qualifies for the 7.5% rate.

 

If you wish, you can opt for taxation under the progressive income tax scale, but this will then apply to all your investment income.

 

Additional Notes:

Individuals whose reference taxable income (revenu fiscal de référence) in year N-2 is below €25,000 (or €50,000 for joint taxpayers) may request exemption from the non-liberatory withholding tax (12.8% or 7.5%).

 

After 8 years, you benefit from an annual exemption of €4,600 (€9,200 for married/PACS couples filing jointly) on your withdrawal gains — this portion is not subject to income tax.

 

In Which Cases Can You Be Exempt from Tax?

You may be exempt from income tax on withdrawals or contract termination if you are:

 

  • dismissed from your job,
  • liquidated due to bankruptcy,
  • forced into early retirement,
  • officially recognized as disabled (categories 2 or 3).

 

You must be the policyholder or their spouse/PACS partner, and the contract must be closed by the end of the year following the qualifying event.

 

Lifetime Annuity Payments: How Are They Taxed?

Life insurance allows you to convert your capital into a lifetime annuity. Your insurer guarantees periodic payments (monthly, quarterly, or semi-annually) until your death.

 

This option is irreversible: you permanently give up control over the capital in your contract. Therefore, you cannot pass on your life insurance at death.

 

The annuity amount depends on:

  • the size of the capital,
  • your age when the annuity begins.

The annuity is taxable (income tax and social contributions).

 

The taxable portion of the annuity depends on your age at first payment and is fixed as follows:

 

  • 70% taxable if you are under 50,
  • 50% if you are between 50 and 59,
  • 40% if you are between 60 and 69,
  • 30% if you are over 69.

 

Death Insurance: What Is It?

Death insurance is a protection policy. You pay premiums to the insurance company, which pays a lump sum or annuity to your beneficiaries upon your death.

 

Unlike life insurance, you cannot be the beneficiary yourself. You must designate one or more people as beneficiaries when signing the contract. The amount to be paid is also fixed at the time of signing.

 

There are two types:

 

  • Term death insurance: valid for a set period,
  • Whole-life death insurance: valid indefinitely.

 

Insurance to Protect Your Loved Ones

Death insurance is a tool to protect your family financially against unexpected life events, especially if you die or become permanently disabled.

 

Depending on the policy, additional coverage may include:

 

  • Accidental death,
  • Total and irreversible loss of autonomy,
  • Illness (if diagnosed after the contract starts),
  • Temporary unemployment.

 

 

How Much Does Death Insurance Cost?

The cost of death insurance varies by contract and the capital to be paid to beneficiaries.

 

The premium also depends on your personal situation:

  • your age at contract start,
  • your lifestyle,
  • your health condition.

 

What Tax Applies to the Capital From Individual Death Insurance?

The capital paid to the designated beneficiaries is not part of the estate and is therefore not subject to inheritance tax.

 

However, this exemption depends on certain conditions:

 

  • Premiums paid after age 70 are included in the estate and subject to tax, with a €30,500 allowance for all premiums paid.
  • If you die before age 70, only the premiums paid in the last year of the contract are taxable, at a rate of 20%, after a €152,500 allowance. For amounts above €700,000, the rate is 31.25%.

 

Full tax exemption applies if the beneficiary is the deceased’s spouse or **PACS partner.

 

Med venlig hilsen / Kind regards

Cabinet Nicolas BRAHIN

Advokatfirma i NICE, Lawyers in NIC

Camilla Nissen MICHELIS

Assistante – Traductrice

1, Rue L

ouis Gassin – 06300 NICE (FRANCE)

Tel :   +33 493 830 876      /    Fax : +33 493 181 437

Camilla.nissen.michelis@brahin-avocats.com

www.brahin-avocats.com

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Genesis of the Finance Act for 2025

Posted on : September 22, 2025

The adoption of the Finance Act for 2025 followed an unusual timeline. In fact, the examination of the draft law, which was presented in October 2024, was interrupted by the resignation of the government on December 5.

To ensure the continuity of public services at the beginning of 2025, Parliament adopted special Law No. 2024-1188 on December 20, 2024, as provided for by the Organic Law on Finance Acts. This law made it possible to collect taxes and raise loans to finance state and social security expenditures.

The draft law returned to Parliament’s agenda in January 2025, and the adoption process led to the enactment of Finance Act No. 2025-127 of February 14, 2025, for the year 2025.

Below is an article-by-article presentation of the main tax measures adopted in the law.

Individuals: Measures in the 2025 Finance Act

Increase in the income tax scale.


Monthly billing basis
  Proportional rate

Under 1 620 €
 
0 %

Over or equal to 1 620 € and under 1 683 €
 
0,5 %

Over or equal to 1 683 € and under 1 791 €
 
1,3 %

Over or equal to 1 791 € and under 1 911 €
 
2,1 %

Over or equal to 1 911 € and under 2 042 €
 
2,9 %

Over or equal to 2 042 € and under 2 151 €
 
3,5 %

Over or equal to 2 151 € and under 2 294 €
 
4,1 %

Over or equal to 2 294 € and under 2 714 €
 
5,3 %

Over or equal to 2 714 € and under 3 107 €
 
7,5 %

Over or equal to 3 107 € and under 3 539 €
 
9,9 %

Over or equal to 3 539 € and under 3 983 €
 
11,9 %

Over or equal to 3 983 € and under 4 648 €
 
13,8 %

Over or equal to 4 648 € and under 5 574 €
 
15,8 %

Over or equal to 5 574 € and under 6 974 €
 
17,9 %

Over or equal to 6 974 € and under 8 711 €
 
20 %

Over or equal to 8 711 € and under 12 091 €
 
24 %

Over or equal to 12 091 € and under 16 376 €
 
28 %

Over or equal to 16 376 € and under 25 706 €
 
33 %

Over or equal to 25 706 € and under 55 062 €
 
38 %

Over or equal to 55 062 €
 
43 %

 

 

 

Income Tax – Key Measures in the 2025 Finance Bill

Adjustment of income tax brackets

The income tax (IR) scale brackets, along with the associated thresholds and limits, will be increased by 1.8%.

 

Donations to organizations helping people in difficulty

Organizations that support individuals in difficulty will continue to be eligible for tax-deductible donations.

 

Associations that support victims of domestic violence will now also qualify for tax deductions for donations made to organizations that assist people in need.
All amounts donated for this purpose from January 1, 2024, onwards will be considered, up to a limit of €1,000.

 

Tax Exemption for Tips

Tips given by customers for services have been exempt from social security contributions and income tax since 2022.

This exemption will be extended into 2025.

 

Introduction of a Differential Contribution for High Incomes

A new contribution will be introduced to ensure a minimum taxation rate of 20% on the highest incomes (above €250,000, or double that amount for a couple), with a reduction mechanism to avoid sharp threshold effects.

Increase in Penalties for Polluting Vehicles

The CO2 tax (“malus CO2”) and the weight-based tax (“malus masse”) will be increased, and the deduction system will be adjusted to better account for the depreciation of used vehicles.

 

  • The CO2 tax will be gradually increased and, by 2027, will apply from 103 g CO2/km, with a maximum amount of €90,000.
  • The weight-based tax will apply to vehicles weighing over 1,500 kg from 2026.
  • The deduction on the penalty tax will be adjusted and become more favorable for newer vehicles.
  • A retroactive penalty will be introduced in 2026 for vehicles that were not taxed at the time of their first registration.

 

How does the penalty tax on polluting vehicles work?

Reduced VAT for Heating-Related Work

The reduced VAT rate of 5.5% will be extended to include district heating systems powered by renewable energy.
Boilers using fossil fuels will be excluded from this reduced rate, except for maintenance and repair of existing equipment.

 

 

Tax Exemption for Gifts to Descendants for Home Purchase or Renovation

Gifts made to children, grandchildren, great-grandchildren, or, in their absence, nieces or nephews, intended for the purchase or energy renovation of a home, will be exempt from gift tax within a double limit:

  • €100,000 per donor per recipient, and
  • €300,000 per recipient in total.

 

Med venlig hilsen / Kind regards

Cabinet Nicolas BRAHIN

Advokatfirma i NICE, Lawyers in NIC

Camilla Nissen MICHELIS

Assistante – Traductrice

1, Rue Louis Gassin – 06300 NICE (FRANCE)

Tel :   +33 493 830 876      /    Fax : +33 493 181 437

Camilla.nissen.michelis@brahin-avocats.com

www.brahin-avocats.com

Read more
 

What are the conditions for calculating the tax credit or the additional tax payable in the tax regularization of a foreign account?

Posted on : September 19, 2025

It should first be recalled that holding a bank account abroad by a French tax resident is in no way prohibited under current law. However, pursuant to article 1649 A of the French General Tax Code (CGI), a reporting obligation applies to the taxpayer.

The latter must declare to the tax authorities all accounts opened, held, used, or closed outside the national territory. This is done by means of Form No. 3916-3916 bis. In addition, the taxpayer is subject to a regularization obligation.

To this end, he or she must file with the local tax office a regularization dossier indicating the bank accounts held abroad and must be able to justify the origin of the funds placed abroad.

The scope of this provision has furthermore been extended to include life insurance policies taken out abroad (art.1649 AA CGI) as well as certain trust-related arrangements (art. 1649 AB CGI). In the event of failure to comply with the reporting obligation, the taxpayer is liable to a flat fine of 1.500 euros per undeclared account.

The penalty is increased to 10.000 EUR per undeclared account when the account is held in a jurisdiction that has not concluded an agreement with France for the prevention of tax fraud and tax evasion.

With regard to the conditions for calculating the tax due, the general rules relating to the determination of the taxable base are set out in Articles 4 A, 4 B and 12 of the French General Tax Code. The taxable base includes, in particular, income derived from accounts, such as interest and fixed-income investment income (Article 124 CGI), dividends and profit distributions (Article 108 CGI), as well as capital gains on securities (Article 150-0 A CGI).

Finally, administrative tax guidelines (BOI-IR-DOMIC-10-20-20) provide that foreign-source income must be expressed in EUR, taking into account the exchange rate applicable on the date of receipt.

The calculation of tax also involves the application of the progressive income tax scale according to taxable income (Article 197 CGI), as well as social contributions (BOI-RPPM-RCM-20-15). Since 2018, there has also been a flat tax of 30% (prélèvement forfaitaire unique) on most investment income (BOI- RPPM-PFVMI-20-10). In addition, article 1727 CGI establishes the principle of late payment interest in the event of late payment or incomplete declaration, set at 0.20% per month.

Furthermore, article 1729 CGI provides for a surcharge in the event of non- compliance or failure to declare: this amounts to 40% in cases of deliberate non- compliance and 80% in cases of fraudulent conduct or abuse of law. Finally, administrative tax doctrine BOI-CF-INF-10-20-10 sets out the procedures for applying these surcharges.

As regards the calculation of any tax due, the principle of non-double taxation applies. This principle is implemented through agreements concluded between two or more countries in order to resolve issues relating to taxpayers’ cross-border taxation.

It is therefore necessary to verify the existence of a tax treaty between France and the foreign country where the relevant account is located. These bilateral conventions, available in particular on the impots.gouv.fr website, set out the methods for eliminating double taxation.

Two main methods of eliminating double taxation under such treaties are recognized: the tax credit method and the exemption method. In accordance with Article 23 B of the OECD Model Tax Convention, the tax credit method allows the foreign tax paid to be credited against French tax due, within the limit of the latter.

The tax credit thus corresponds to the tax actually paid abroad, capped at the amount of French income tax due on the same income base. The conditions and practical arrangements for this mechanism are specified by administrative doctrine (BOI-IS-RICI-30-10-20-10). Proof of taxation abroad is mandatory (BOI-INT-DG-20-20 § 100 et seq.).

Where the tax credit is equal to the French tax due, it cancels out French income tax liability, but does not exempt the taxpayer from social contributions. The exemption method, on the other hand, consists in exempting in France certain foreign-source income, subject to the conditions laid down in the applicable tax treaty.

The principles of this method are also set out in Article 23 B of the OECD Model Tax Convention, while details of the implementation of double taxation relief are provided by administrative doctrine (BOI-INT- DG-20-20-100).

Finally, a further mechanism deserves mention, namely the additional tax payable in cases where taxation abroad is lower than the taxation that would have applied in France. Three scenarios can be identified.

First, when the tax paid abroad is lower than the amount that would have been due in France, the taxpayer must pay the difference to the French Treasury (article 23 B of the OECD Model Convention). Second, in the absence of any taxation abroad, the taxpayer is fully taxed in France.

This is notably the case when the taxpayer is unable to provide proof of actual payment of foreign tax (BOFiP–BOI-INT- DG-20-20, § 90). Finally, there are particular situations: on the one hand, cases where income is exempt abroad but taxable in France, the treatment of which depends on the terms of the applicable bilateral treaty; on the other hand, cases where income is subject to foreign withholding tax, in which event the taxpayer must provide evidence of the amount actually withheld, by means of a certificate or a statement (BOFiP–BOI-INT- DG-20-20, § 100 et seq.).

Ultimately, the tax regularization of accounts held abroad by a French tax resident cannot be reduced to a mere reporting formality. It falls within a demanding regulatory framework combining reporting obligations, financial penalties, and methods of tax calculation.

The application of international tax treaties, in conjunction with domestic law, plays a decisive role, as it allows either the allocation of a tax credit corresponding to foreign taxation or the exemption of the income concerned. This coordination is intended to prevent the risk of double taxation while ensuring that the French tax authorities can collect the tax owed.

 

The combination of these various rules reflects the legislator’s and the administration’s intention to guarantee fair taxation of foreign-source income while combating tax fraud and evasion.

 

Med venlig hilsen / Kind regards

Cabinet Nicolas BRAHIN

Advokatfirma i NICE, Lawyers in NIC

Camilla Nissen MICHELIS

Assistante – Traductrice

1, Rue Louis Gassin – 06300 NICE (FRANCE)

Tel :   +33 493 830 876      /    Fax : +33 493 181 437

Camilla.nissen.michelis@brahin-avocats.com

www.brahin-avocats.com

Read more
 

Income tax, What will change in September 2025

Posted on : September 10, 2025

Since 1 September 2025, the individualised rate has become the standard for married couples and registered partners who are taxed jointly.

Details can be found in the article.

What income is subject to withholding tax?

Withholding tax (PAS) applies to almost all income subject to income tax, but with two different collection methods.

 

Income with direct collection by a third party

Collected directly by the paying institution (employer, pension fund, France Travail, etc.):

– Salaries and wages

– old-age pensions,

– life-long pensions without consideration (e.g. pension paid by a parent to a child),

– replacement income (unemployment benefits, sickness benefits, etc.).

Example

If you receive €2,000 net taxable income per month from your employer, they will deduct the tax directly from your payslip.

 

Income with advance payments collected by the tax authorities

For certain types of income, there is no intermediary to collect the tax. In this case, the tax authorities collect a monthly or quarterly advance payment from your bank account for the following types of income:

 

Income from the sale of shares, bonds, etc.

  • income from self-employment (liberal professions, traders, craftsmen, farmers, etc.),
  • income from real estate (rent received),
  • annuities in return for payment,
  • certain types of maintenance payments,
  • certain specific types of income for managers (see Article 62 of the General Tax Code).

 

Special cases

  • Income from foreign sources that is taxable in France.
  • Certain salary income paid by an employer in the European Union or in a country that has signed a tax treaty with France.

 

How is my tax rate determined?

The tax rate is calculated each year in September based on your tax return from the spring. It takes into account your income and household composition, but not tax deductions/tax credits.

Example

Rokhaya declares a salary of €36,000 in May 2025. In September, the tax authorities apply a personal rate of 7.5% to her. From October onwards, this rate is automatically passed on to her employer.

 

How is the amount charged each month calculated?

The amount collected corresponds to the taxable income for the month multiplied by the rate applicable to your situation:

 

How is the amount deducted from my salary calculated?

  • for an employee: taxable net income = total net income – special deductions (more information),
  • for a self-employed person or landlord: the advance payment is calculated on the basis of the estimated taxable income for the current year and is automatically adjusted if your income changes.

Example

Employee: Julie receives €2,500 in taxable net income per month, and her personal rate is 7.5%. Monthly amount collected = €2,500 × 7.5% = €187.50.

Self-employed: Marc, a craftsman, expects an annual income of €36,000. The tax authorities collect a monthly advance payment of €225 (7.5%), which is automatically adjusted if his income changes.

 

Good to know

PAS is automatically adjusted to changes in income, but tax deductions and reductions are adjusted the following year.

 

Can I adjust my rate if my situation changes (income, marital status)?

Yes You can apply for an upward or downward adjustment if your income changes or if your family situation changes (marriage, birth, divorce, etc.). The application is submitted in your personal area and takes effect within a few months.

Example

Jean loses his job in March. His income is cut in half. He reports this change and gets a new reduced rate in May, which lowers his contributions starting in June.

 

Is the contribution automatic if I don’t change anything?

Yes. If you don’t take any action, the rate calculated in September will apply by default. However, you can choose not to disclose your personal rate to your employer.

In this case, the employer applies a neutral rate calculated solely on the basis of your income and without taking your family situation into account.

 

What happens if I am in a relationship (married or registered partner)?

Since 1 September 2025, the individual rate has become the standard for married couples or couples in registered partnerships who are taxed jointly.

Each spouse has their own rate, calculated on the basis of their respective income, but the total tax burden for the household remains unchanged.

Example

Julia and Albert, a childless couple, earn €1,600 and €3,500 per month respectively. This gives a taxable net income for the household after a 10% deduction of €55,080 per year and a tax bill of €3,574.

Currently, the household rate of 5.8% applies to both Julia’s and Albert’s income. On their payslips, Julia will have a monthly withholding tax of €93 and Albert €203.

With the individualised rate, which takes into account each person’s income, the rate applied to Julia’s payslip will be 0.4%, corresponding to €6 in withholding tax per month, and 8.3% for Albert, corresponding to €290 in monthly tax, for an unchanged total tax amount (€296 collected each month for the two members of the tax household).

Cabinet Nicolas BRAHIN

Advokatfirma i NICE, Lawyers in NICE

Camilla Nissen MICHELIS

Assistante – Traductrice

1, Rue Louis Gassin – 06300 NICE (FRANCE)

Tel :   +33 493 830 876      /    Fax : +33 493 181 437

Camilla.nissen.michelis@brahin-avocats.com

www.brahin-avocats.com

Read more
 

New Rules for Access to Beneficial Ownership Data (DDADUE 5 Law)

Posted on : August 7, 2025

The DDADUE 5 Law of April 30, 2025, which came into force on May 3, 2025, adapts the French Monetary and Financial Code to comply with the requirements of the 6th Anti-Money Laundering Directive (Directive EU 2024/1640). It represents a major change by removing direct public access to data on beneficial ownership, in line with the jurisprudence of the Court of Justice of the European Union (Cases C-37/20 and C-601/20, 2022), which struck down the general public disclosure of such data. The law establishes a filtering system, in effect since July 5, 2024, that restricts access based on the status or legitimate interest of the applicant.

Three categories of persons may access the data. First, declaring entities and declared individuals: companies or legal entities that have filed information on beneficial owners have full access to the data they themselves submitted. Individuals designated as beneficial owners also have access to data concerning themselves—this is a new right introduced by the law. Second, competent authorities and persons subject to AML/CFT regulations: unrestricted access is granted to various public authorities involved in the fight against fraud and money laundering, such as Tracfin, judicial authorities, customs, labor inspectors, the High Authority for Transparency in Public Life (HATVP), OLAF, the European Anti-Money Laundering Authority (ALBC), Eurojust, and others, including equivalent authorities from other EU Member States, with some exceptions. Persons subject to AML/CFT obligations under Article L. 561-2 of the Monetary and Financial Code also have full access to the data, provided that they implement a due diligence measure. This right is extended to such persons operating in another EU Member State.

Third, persons with a legitimate interest: a natural or legal person may obtain partial access to the data if they demonstrate a legitimate interest, such as the prevention or fight against fraud or money laundering. Accessible information includes the name, nationality, date of birth, interests held, and, starting in July 2026, the ownership chain. A list of individuals and entities presumed to have a legitimate interest is provided, including journalists, NGOs, academic researchers, members of parliament, public buyers, and foreign authorities. Access requests are submitted to the INPI (National Institute of Industrial Property) or the competent commercial court registry, which will assess whether a legitimate interest exists. In case of refusal, an appeal may be filed with the president of the commercial court, as provided in Article L. 123-6 of the Commercial Code.

Beneficial owners have the right to request the identity of those who have accessed their data, except in two cases. If the access was made by a journalist, researcher, or NGO, only the profession of the requester is disclosed, anonymously. If the access was made by a foreign AML/CFT authority, disclosure may be postponed for investigative reasons.

 

Cabinet BRAHIN, Advokatfirma i NICE, Lawyers in NICE

Camilla Nissen MICHELIS

E-mail : camilla.nissen.michelis@brahin-avocats.com

1, Rue Louis Gassin – 06300 NICE (FRANCE)

Tel :   +33 493 830 876      /    Fax : +33 493 181 437

www.brahin-avocats.com

Read more
 

Agreements on Future Successions

Posted on : August 6, 2025

An agreement on future succession is a legal act whose object is rights over an inheritance that has not yet been opened. This inheritance may concern either the contracting party or a third party.

 

Relaxation of Prohibition

Article 770 of the Civil Code provides that “the option cannot be exercised before the opening of the succession, even by marriage contract.”

Similarly, Article 722 states that “agreements whose purpose is to create rights or to waive rights over all or part of an inheritance not yet opened or an asset depending on it only produce effect in cases where they are authorized by law.”

The Law of June 23, 2006 introduced the family pact, which constitutes a serious exception to the principle prohibiting agreements on future successions.

 

Criteria for Future Succession Agreement

Jurisprudence has clarified the criteria for agreements on future successions. While most definitions describe such agreements as contractual, case law has sometimes qualified even unilateral acts as prohibited agreements, as seen in Cass. 1st civ., March 17, 1987 (n° 85-16484).

A 1933 ruling used the broad term “stipulation,” and the existence of an agreement on future succession may be established as soon as the convention concerns an element, a share, or the entire un-opened succession (Cass. civ., Nov. 11, 1845).

Such an agreement grants only a potential right, since the succession has not yet opened.

 

Permitted Conventions

According to Article 722 of the Civil Code, amended by the law of December 3, 2001, only agreements authorized by law can produce effects concerning an unopened inheritance.

Therefore, some mechanisms escape nullity either because they do not constitute true agreements on future succession (such as the post-mortem promise) or because the law permits them as family arrangements.

 

The Post-Mortem Promise

A person may undertake obligations that will only be executed upon their death.

Thus, agreements that take effect only after death do not fall under the prohibition on agreements concerning future successions, so long as they do not involve transferring the succession itself or any part of it.

For instance, a dowry payable upon death is valid.

According to legal doctrine, the post-mortem promise is valid because the right it confers is actual, with only its enforcement deferred until the death of the promisor. Jurisprudence supports this interpretation, having rejected the prohibition of such promises on the grounds that the beneficiary acquires an “actual pure and simple right,” with enforcement merely postponed until death (Cass. 1st civ., May 30, 1984, n°84-11795; Cass. 1st civ., July 9, 2003, n°00-21163).

 

Ascendants Partition

The “ascendant’s partition,” also called “gift-partition” or “testamentary partition,” is an act whereby an ascendant distributes all or part of their succession among their descendants, by way of gift or testament.

The ascendant composes the lots themselves and ensures that each lot is at least equal to the reserved portion due to the beneficiaries (Civil Code, art. 1075 et seq.).

 

Contractual Institutions

Contractual institutions are a form of donation involving future assets, specifically those forming part of a succession.

These have been permitted between spouses since the Civil Code of 1804. Article 1092 of the Civil Code allows such liberalities to be granted in a marriage contract to future spouses. Among spouses, this is known as a “donation to the last survivor.”

 

Commercial Clause

The commercial clause has been admissible since 1985. Since January 1, 2007, it may provide that the surviving spouse can have the heirs agree to a lease concerning the building where the business is operated (Civil Code, art. 1390, para. 2).

 

Tontine Clause

The tontine clause, also known as the accretion clause, was long considered by the Court of Cassation as an agreement on future succession.

However, in a ruling on November 27, 1977, confirmed on January 11, 1983 (Cass. 1st civ., Jan. 11, 1983, n°81-13307), the Court recognized the tontine as a conditional (aleatory) contract due to the suspensive condition of the beneficiary’s survival.

 

Waiver of Action for Reduction

Since the 2006 reform, Article 929 of the Civil Code permits any presumptive forced heir to waive their right to bring an action for reduction in an unopened succession, in favor of one or more specific individuals.

The waiver can cover the entire reserved portion, part of it, or only a specific liberal provision.

Prior to 2006, such a waiver constituted a prohibited agreement on future succession.

 

Reversibility Clause

The usufruct reversion clause is no longer considered a prohibited agreement on future succession following a decision by the Court of Cassation’s First Civil Chamber on October 21, 1997 (n°95-19759).

 

Recognition of Debt and Agreements on Future Successions

In a ruling dated October 22, 2014 (n°13-23657), the First Civil Chamber clarified that “a convention that gives rise to an actual pure and simple right for its beneficiary, enforceable against the debtor’s succession,” does not constitute a prohibited agreement on future succession.

 

Thus, a recognition of debt enforceable only upon death is not considered such an agreement

 

Med venlig hilsen / Kind regards

Cabinet Nicolas BRAHIN

Advokatfirma i NICE, Lawyers in NICE

Camilla Nissen MICHELIS

Assistante – Traductrice

1, Rue Louis Gassin – 06300 NICE (FRANCE)

Tel :   +33 493 830 876      /    Fax : +33 493 181 437

Camilla.nissen.michelis@brahin-avocats.com

www.brahin-avocats.com

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