French notaries propose halving donation taxes to ease inheritance

French notaries are proposing a significant reform to inheritance and donation laws to address the challenges of an aging population and the massive transfer of wealth. The Congress of French Notaries has suggested reducing donation taxes by half for taxpayers under the age of 75, with the benefit capped at 500,000 euros. Under this proposal, the current maximum tax rate of 20 percent for the 15,000 to 500,000 euro bracket would be lowered to 10 percent.

The goal of this initiative is to encourage the early transfer of assets, thereby supporting investment for younger generations and smoothing the transition of family wealth. Proponents argue that early planning can prevent the family conflicts that arise when nearly 50 percent of individuals die without a will. However, the proposal may face opposition due to the need for public finance consolidation.

Beyond fiscal implications, the lack of succession planning remains a major issue in France, with data suggesting that 75 percent of successions result in family disputes. These conflicts often stem from emotional attachments to property or disagreements over asset valuation during the two to three month period typically required to settle an estate.