Can parents revoke their inheritance for a sibling or children?
Finding Your Rightful Inheritance: Every month, our experts sit down with Stéphane, a worried father, to discuss his financial concerns on "Great Savings Rendezvous" (our site / Radio Heritage). Today, Stéphane's primary concern is whether his parents might disinherit him in favor of his younger sister or certain grandchildren.
By Quentin Bas Lorant Journalist, investments at oursite.fr Published on
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Stéphane's inquiry focuses on the marital donation - or survivor's donation - that his parents might resort to. This arrangement allows a surviving spouse to choose the most favorable option upon their death. "The surviving spouse can opt for the usufruct of the entire estate, which amounts to freezing the children's share until their own death or until a sale decided upon by mutual agreement," explains Nathalie Couzigou-Suhas, Parisian notary. Rest assured, this doesn't mean Stéphane is automatically cut off from the inheritance.
Grappling with unequal sharing among heirs, Stéphane's concerns are seemingly justified, as French law does not allow total disinheritance. "In French law, it is not possible to totally disinherit a child," clarifies Guillaume Berthiaux, president of Sofidy Private Management. Each child has a reserved claim to the estate (known as "réserve héréditaire"), ensuring they always receive a fixed minimum share regardless of the will. In Stéphane's case, with a sister, the reserved portion represents two-thirds of the estate, distributed evenly. The remaining third, referred to as the "quotité disponible," can be freely distributed among other children or grandchildren. "Your parents could, by will, leave two-thirds of the estate to your sister and the remaining third to you or certain grandchildren," Guillaume suggests.
Life insurance brings a more convoluted issue. It lies outside the realms of hereditary reserve, making it possible to favor certain family members. However, extreme premiums can lead to legal challenges. Be cautious of potential inheritance rights on bare ownership, which Stéphane may have to cover: "If the value of the assets exceeds the legal allowances, the beneficiaries will have to pay taxes, even if the usufruct is retained by a third party," warns Guillaume. Fortunately, Nathalie reassures us that "the tax administration allows a payment deferral with interest, until the death of the usufructuary."
Legal Challenges in Marital Donations:
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- Despite his concerns, it's important for Stéphane to know that French law does not allow total disinheritance, as each child has a reserved claim to the estate.
- Nathalie Couzigou-Suhas, a Parisian notary, explained that the surviving spouse can opt for the usufruct of the entire estate, freezing the children's share until their own death or a sale decided upon by mutual agreement.
- Guillaume Berthiaux, president of Sofidy Private Management, clarified that life insurance, lying outside the realms of hereditary reserve, makes it possible to favor certain family members, but extreme premiums can lead to legal challenges.
- Stéphane may have to cover potential inheritance rights on bare ownership if the value of the assets exceeds the legal allowances, even if the usufruct is retained by a third party.
- To address investment, inheritance, tax, or real estate concerns, submit your questions to "Great Savings Rendezvous" and get expert insights from the show each month by emailing question@oursite.