The trick a widow used to save her daughter €500,000 in inheritance tax

When managing the inheritance of an estate, it’s advisable to explore all the legal avenues available to prevent the Treasury from taking a significant slice of the pie. This is what an elderly French woman named Louise has done, saving herself and her family half a million euros in taxes.

According to the French media outlet ‘Figaro Immobilier,’ this 92-year-old Parisian decided in June 2024 to organize her succession in an orderly manner. Widowed for 10 years, she owned two life insurance policies and a 120-square-meter apartment in the 15th arrondissement of Paris valued at 1.4 million euros.

The problem is that, to maintain control over the property, the woman was reluctant to make a gift during her lifetime. Therefore, a notary, Antoine de Ravel d’Esclapon, suggested she follow a strategy that would save thousands of euros in French inheritance tax.

The idea was to name his 63-year-old daughter, Marie, as the sole legatee in the will, even though she was his sole natural heir. This legal arrangement allows for partial inheritance acceptance. Thus, the scope of the transfer was limited, and part of the estate passed directly to Marie’s children (Louise’s grandchildren), Antoine and Jade, aged 32 and 30 respectively.

In this way, the legatee receives only a portion of the inheritance. The heirs will subsequently receive the remainder. In addition to the assets, this also allows for the tax impact to be shared, since the tax base is divided among three taxpayers.