French inheritance law: what US heirs need to know

French inheritance law can apply to US heirs who receive money or property from France, bringing French legal rules, French tax, and US reporting into play even if you live in the US and have never set foot in France.

What you face depends on the deceased's situation, the assets involved, and any treaty, not simply your nationality. This guide covers how French inheritance tax works, the 2021 forced-heirship reform, and the practical steps for claiming your inheritance.

We'll also introduce the Wise account, which allows you to send, spend, and receive your money across the globe in over 40 currencies – all at the fair mid-market rate.

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Does French inheritance law apply to US heirs?

It can.

However, owning French assets doesn't necessarily mean French law governs the entire estate. When an inheritance crosses borders, two sets of rules apply. One set of rules determines who inherits, and a different set determines which country taxes the inheritance.

Because they're separate, French law can govern the tax while US law governs the shares, or the reverse.

As for who inherits, the starting point across the EU is the law of the country where the deceased habitually lived. A person can override that by naming the law of their nationality in their will, under Articles 21 and 22 of the EU Succession Regulation.¹

For an American, that usually means choosing the inheritance law of their US state, which generally lets them leave their estate as they wish.

Where French law does apply, it uses forced heirship. Children are entitled to a protected share of the estate, called the réserve, and only the remaining portion, the quotité disponible, can be left freely to whomever the deceased chose.

What is the new French inheritance law for non-French residents?

Searches for a "new French inheritance law" usually point to a 2021 change and not a new 2026 law. On November 1, 2021, France amended Article 913 of the Civil Code to add a compensatory levy, known as the droit de prélèvement compensatoire. ²

When a foreign law governs the estate and gives children no protected share, certain children can reclaim the réserve they would have received under French law, taken from assets located in France.

The rule only applies when:

• The deceased or at least one of their children is an EU national, or habitually lives in an EU member state, at the time of death
• The foreign law governing the estate has no forced-heirship mechanism protecting children
• The claim is limited to assets in France and to the share French law would have given

So this doesn't switch the entire estate over to French law, and it doesn't affect every American heir. It corrects the outcome for French-situated assets in the specific case where those conditions are met.

If you are unsure, make sure to ask a French notaire whether it applies to your situation.

How does inheritance tax in France work for a US heir?³

Americans often search for "France estate tax," but France doesn't tax the estate as one pot.

It taxes each beneficiary on the share they receive, and the rate depends on how closely related they were to the person who died.

Who France can tax depends on factors such as:

• Where the deceased lived
• Where the assets are located
• How long the beneficiary has lived in France
• The France-US treaty

As a general rule, French real estate is taxable in France even when the deceased and the heirs all live abroad. If the deceased was a French resident, France can tax the worldwide assets passing to the heirs, subject to the treaty.

Allowances, exemptions and inheritance tax rates

First, each beneficiary subtracts a tax-free allowance based on their relationship to the deceased. Then, they pay tax on what is left at the rate set for that relationship. A surviving spouse or PACS partner pays nothing at all.

The main allowances and rates are:⁴

A disabled heir can add a further 159,325 EUR to whichever allowance applies.⁴

Here are two examples that show how the deceased's residence changes the picture:

• A US parent who lived in the US and owned a 400,000 EUR home in France leaves it to one child, who deducts the 100,000 EUR allowance and pays the direct-line rates on the remaining 300,000 EUR, because French property is taxable in France wherever the family lives
• The same parent, had they been a French tax resident, would have exposed the worldwide assets passing to that child to French tax, not only the French house, subject to the treaty

At the same time, life insurance is often taxed under its own regime, and lifetime gifts (donations) have their own allowances that reset over time. Make sure to confirm what applies to you with a tax advisor.

Filing deadlines, forms and payment

The declaration and the tax are due on a deadline set by where the death happened. If the person died in France, the declaration and payment are due within 6 months. If they died abroad, which is the usual case for a US-based family, the deadline is 12 months.⁵

The return is the déclaration de succession.

For an estate that includes French real estate, a French notaire is required to establish who the heirs are and to transfer the title. In practice, the notaire prepares and files the declaration too, so heirs abroad can act through a power of attorney without traveling.

Payment is due when the declaration is filed. Before a French bank releases inherited funds, it'll ask for proof of who the heirs are, usually the notaire's certificate, the acte de notoriété.

The France-US estate tax treaty can change which country taxes what and provide relief from double taxation, so review it, or have your advisor review it, alongside the French rules.

What must a US heir report in the US?

Money or property you inherit is generally not counted as income on your US tax return, so a French inheritance doesn't usually create a US income tax bill on its own. However, reporting is a separate matter, and some later taxes can still apply, too.

The France-US estate and gift tax treaty sets out which country can tax what and can give relief from double taxation, usually through a credit for tax already paid to the other country. That said, it doesn't make every inheritance tax-free.

Form 3520 and foreign accounts

The main form to know about is Form 3520.

A US person generally has to file it when the gifts or inheritances they receive from a nonresident alien or a foreign estate add up to more than 100,000 USD in a year. The form reports the transfer, but it doesn't create a tax on its own.⁶

Whether you need it depends on who the deceased was. If they were a non-US person, such as a French parent or relative, their estate counts as a foreign estate and Form 3520 can apply. If they were a US citizen or lived in the US, their estate is a US estate even when it includes a home in France, so the inheritance generally doesn't go on Form 3520.

How you received the money changes how it is reported:

• A direct inheritance or gift from a foreign person or estate is reported as a straightforward receipt on Form 3520
• A payment out of a foreign trust is treated differently and has its own reporting, often without the 100,000 USD threshold

There are two other forms that can apply:

• An FBAR may be required once your foreign accounts together pass 10,000 USD at any point in the year⁷
• Form 8938 may be required once your foreign financial assets pass the higher thresholds the IRS sets

Thresholds and deadlines change, and Form 3520 is usually due with your income tax return, so confirm the current rules or consult with a tax advisor.

Inherited property and later income

If you inherit French property, keep the official valuation as of the date of death. US rules generally treat that value as your cost basis, which is the figure a future gain or loss is measured against if you sell, so it helps to have it on record.

The inheritance stays out of your income, but what the asset earns afterward doesn't. Rent, interest, dividends, or a gain when you sell can be taxable on your US return.

How to claim an inheritance from France

Most French estates are handled by a notaire, a public official who manages the legal side of an inheritance in France. For an estate that includes property, a notaire is required, and for other estates it's still the norm, so the notaire is usually your main point of contact.

The process usually follows this order:

1. Confirm the basics of the estate, including where the deceased lived, their nationality, and whether they left a will
2. Contact the French notaire handling the estate, or ask the family which notaire has been appointed
3. Send the documents the notaire asks for, covering your identity, relationship to the deceased, bank details, and the estate's assets
4. Work with the notaire to confirm which law applies, what the assets are worth, and what tax is due
5. Complete the declaration of succession, obtain any clearance needed, and arrange for your share to be distributed

If any documents need to be translated into French or require an apostille to prove they are official, the notaire or the relevant authority will tell you.

Receiving or selling inherited assets in France

If your inheritance includes property, the notaire records the change of ownership so the property is registered in your name. If you inherit alongside other people, you own the property together in undivided shares until you divide it or sell, and decisions about it generally need everyone's agreement.

As an owner, you take on the ongoing French property taxes, and a high enough value can bring the property into the French property wealth tax, the IFI.

Once the estate is settled and the funds are legally released, you may want to move your share from EUR into USD. Make sure to compare providers and look at the exchange rate, any transfer fees, and any charges added by intermediary banks along the way.

Wise is a smart option for converting EUR to USD and sending the money to a US account, at the mid-market rate and with transparent fees.

For a large amount like an inheritance, Wise may ask for evidence of where the money came from, such as a will, a probate or estate document, a lawyer's or notaire's letter, or a bank statement. You can see what to expect in Wise's large-transfer guidance.

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A French inheritance can involve French law determining who inherits, French inheritance tax on each beneficiary's share, and your US reporting.

French property is taxable in France even if you live in the US, and an inheritance usually isn't counted as US income, but forms like Form 3520 can still apply.

When the French side is done and your share is released, the last step is getting the money to the US. Wise can convert your EUR to USD at the mid-market rate, which helps you keep more of what you inherited when the funds reach your US account.

With Wise, you can send secure and trackable large amount transfers to 140+ countries worldwide with transparent fees and the fair mid-market exchange rate.

Have a look at the main benefits for using Wise to send large transfers:

• Dedicated support for large transfers
• Fast and easy setup with no physical paperwork
• Upfront, transparent fees
• Fully trackable transfers
• Fast transfer times
• Two-factor authentication and real-time notifications

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Sources

1. European Union - Regulation (EU) No 650/2012 of the European Parliament and of the Council of 4 July 2012 on jurisdiction, applicable law, recognition and enforcement of decisions and acceptance and enforcement of authentic instruments in matters of succession and on the creation of a European Certificate of Succession
2. Code civil - Article 913
3. Government of France - Taxable assets
4. Taxes for Expats - French inheritance tax
5. Government of France - How and where to declare an inheritance in France
6. IRS - Instructions for Form 3520
7. IRS - Report of Foreign Bank and Financial Accounts (FBAR)