Property Succession Laws: Tontine and Unmarried Couples

Originally posted on 18th July, 2022 & updated on 31st March, 2025

When planning to buy French real estate, navigating inheritance laws can be complex. In France, the system of forced heirship significantly impacts estate planning. Under this system, certain family members, particularly children, have guaranteed rights to a portion of your estate. A tontine can help manage the transfer of property and assets in a way that aligns more closely with your intentions.

Inheritance Laws in France

French succession law has a system of forced heirship, whereby certain family members have a right to inherit part of your estate. This means that your children will automatically inherit a share of any part of your estate that is subject to French law, even in the presence of a spouse. There are ways to deal with this, and a tontine clause is one of them.

A tontine clause is the French equivalent to a joint tenancy in the UK: on the first death, the deceased’s share of the property passes to the surviving tontine holder.  The person who dies first is deemed never to have been an owner, and the surviving owner is considered to have been the sole owner from the start. Whilst it can be used in relation to any assets, it is most commonly used when acquiring real estate.

Tontine ownership may have adverse consequences and, depending on your specific family circumstances, may not be appropriate. You should bear in mind that the surviving owner may have to pay French inheritance tax on the first death. Whilst there is a full exemption for inheritance between married couples and civil partners, assets passing to cohabiting partners are taxable at 60% above a small allowance of €1,594.

As an exception to this rule, when the property is the purchaser’s principal residence at the time of death, and its value is less than €76,000, the survivor only pays transfer duties at a rate of 5.81%.

Importantly, the decisions regarding properties bought under a tontine arrangement require unanimity. Even if the owners no longer get along or wish to separate, unanimity is required to sell the property or agree that one of them will buy the other’s share.

It is generally recommended that unmarried couples avoid purchasing using a tontine clause. If you are interested in purchasing a French property with a tontine then you should remember that the clause must be inserted into the deed of purchase; afterwards will be too late!

Our UK based tax experts specialise in such French/UK issues; including taxation, wealth tax, succession, etc. They have extensive knowledge of French tax system, please contact us for more details. We can also assist with buying euros at a good rate, and also French insurance.

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