France issues guidance on inheritance donations and estate planning

Financial advisers in France stress that anyone considering a lifetime transfer of wealth should first answer three questions: whether the gift is intended to help now or to reduce future inheritance taxes, which assets are best suited for donation, and whether the donor can afford the loss of liquidity without jeopardising future needs such as healthcare or housing.

They outline the principal donation structures – full ownership transfer, donation with a reserved usufruct, and naked ownership (nue‑propriété) – describing the legal effect, typical advantages and limits of each. Professionals advise against gifting a primary residence, recommending instead secondary homes, rental properties or cash only when the donor retains sufficient liquid resources. The guidance also details tax implications, including reduced inheritance duties, potential capital‑gain exposure for recipients, and the timing of abatements for property transferred before death.