France updates inheritance tax exemptions 2026

A July 2026 survey showed that 72 % of French adults have taken no steps to organise their succession, leaving estates exposed to taxes, disputes and frozen assets; only about 15 % have a valid will. French civil law enforces a forced‑heirship reserve, guaranteeing a minimum share to each child (half of the estate for one child, two‑thirds for two, three‑quarters for three or more), so only the disposable portion can be allocated freely.

In August 2026 the government clarified the 2026 inheritance and donation tax exemptions. Parents may give each child up to €100,000 tax‑free under the general donation allowance, plus an additional €31,865 cash‑gift exemption (renewable every fifteen years, donor under 80, recipient adult or emancipated minor). A practical illustration shows that a beneficiary inheriting a €300,000 house and €150,000 of other assets would face a taxable base of €250,000 after applying a €200,000 parental allowance, resulting in roughly €48,200 of inheritance tax plus €5,700 in notary and administrative fees – about €54,000 in total costs.

These updates highlight that, despite expanded tax‑free limits, the fiscal impact of succession remains substantial, reinforcing the need for early planning, public education and professional advice to navigate both statutory constraints and available exemptions.