state and tax inventory

Lowering the tax base

As part of an inheritance, the heirs can call on an auctioneer to draw up an inventory of the deceased's moveable assets, in collaboration with the notary. This is essential to avoid the systematic application of the 5% lump-sum tax on movable property, which is calculated on the basis of the total gross estate assets (including immovable property). The choice of inventory, which drastically reduces the tax base, offers significant savings to the beneficiaries.

For example: without an inventory, for a flat valued at €600,000, the tax authorities will deduct 5% of this amount, i.e. €30,000. However, the total value of the furniture is always (barring rare exceptions) much lower. So, if you opt for an inventory, the tax will not be calculated on the basis of €30,000, but on a sum of between €1,000 and €10,000 (indicative range).
 

Making an equitable division

The auctioneer's expertise is invaluable in ensuring that the movable assets are divided fairly between the beneficiaries, in order to avoid disputes. The heirs may choose to sell the inherited goods at auction in order to recover their cash value at the end of the inventory. In this case, the firm's conveyancer will quickly and carefully remove all the furniture so that the heirs can dispose of the premises. At the end of the auction, the sale proceeds will be divided between the heirs.

Similarly, during the inventory, the auctioneer may discover an item of isolated value. The heirs have two options:

• The property is sold by the auctioneer in undivided ownership, with full payment of the price divided between the heirs;
• The item is not presented at an auction, but one of the heirs offers to buy out the other(s) in order to keep the item and become its owner. This division will be made on the basis of the estimate provided by the auctioneer.

 

Practical details

The notary arranges a meeting at the deceased's home with the auctioneer, who makes an inventory of the personal property in the presence of at least one of the beneficiaries. The inventory is inserted directly into the inheritance file, and will serve as the tax basis for the final calculation at the time of closing.

As a reminder, an inventory of the estate is compulsory in certain circumstances:

• When one of the heirs is legally protected as a minor child or a protected adult under guardianship or curatorship;
• If there is no heir because it is difficult to contact them at the time of the succession;
• When the estate is accepted up to the amount of the net assets, i.e. when the heirs undertake to repay the debts that accompany it only up to the value of the inheritance, thus protecting their personal assets;
• Inheritance devolved to the State (vacant or escheated) ;
• Judicial partition proceedings;
• Bequests to charitable organisations, which must decide whether or not to accept the bequest after being informed of its value.

Maître Gillieron travels throughout France and abroad. To make an appointment for an inventory, please contact her on 09 88 43 06 39 or by email at contact@morganegillieron.com .