It’s a common question. If you have children, step children or grandchildren, it’s important to think about the best way – and most tax-efficient way – of leaving a legacy for your loved ones after your death. French inheritance can be complex to understand; but with an Assurance Vie policy in place, you can create a flexible savings based policy that will stand the test of time.
Unlike UK inheritance law, French inheritance law can result in inheritance tax for blood relatives. Therefore it’s crucial to understand your situation and make alternative arrangements where necessary.
Assurance Vie is like a life insurance policy in the UK but with some differences, and it also acts as a will. Crucially – and this is a key benefit – you have considerable flexibility with an Assurance Vie as you can cease premium payments, withdraw or add funds whenever you choose, withdraw all the funds or convert the capital into a life-time annuity. Funds are generally either shares or bonds.
The Assurance Vie funds are used to purchase investments – managed funds – which can be tracked and managed easily – allowing you to make changes depending on their performance. You have the option of safe to medium or high risk investments depending on your preference or you can choose to invest 100% capital guaranteed, which gives approximately 2-2.5% interest and is a popular choice.
When you die the underlying investments are sold and the proceeds are transferred to your named beneficiaries, there can be tax advantages so contact us for further information. Another advantage of the Assurance Vie is that you can change the names of the beneficiaries as often as you wish.
That is why the Assurance Vie is the most popular savings account in France. It is used often, and it is the best type of flexible saving by far in France. Contact us today to find out more about how we can help you create a legacy for your family.
Based in Bordeaux, we are the only SwissLife agency in France to work with English speaking clients. We offer a wide range of Healthcare Insurance and General Insurance solutions backed by one of Europe’s leading Insurance providers.
Contact: Peter Musto 05 56 28 94 64
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