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What You Need to Know About Forced Heirship

In this article we compare the US estate tax approach to the French Inheritance tax approach.

The first difference is that in the US, it is the estate that’s subject to tax, while the French approach is to tax the beneficiaries.

U.S. estates under $13.99 million are not subject to estate taxes in 2025, and, subject to any state level community property laws, it can be distributed in any way. However, inheritance tax laws in France differ significantly.

As a French tax resident however, your estate is subject to French forced heirship rules, which dictate that certain family members are entitled to a portion of your estate, regardless of what your will specifies. Additionally, all assets held worldwide by a French tax resident are subject to French inheritance laws.

In this article, we’ll explore how forced heirship works in France, using two examples to illustrate how these rules can impact your wealth distribution, on with an estate of $1 million and the other with $2 million. These amounts would not be subject to estate taxes in the US.

First we look at estate distribution considering forced heirship and then we touch on Inheritance taxes which we will cover in a separate Deep Dive.

What Is Forced Heirship in France?

In France, forced heirship laws are very strict. The system is designed to ensure that certain family members, usually children, are guaranteed a portion of your estate, regardless of your wishes. The amount of the estate that must go to heirs is determined by the number of children you have.

      • For one child, they are entitled to 50% of the estate.

      • For two children, the estate is split into two equal parts, with each child receiving 25%.

      • For three children, the estate is divided into three equal parts, with each child receiving 16.67%.

    The remaining portion of your estate can be freely allocated to other beneficiaries, like a spouse, friends, charities, or distant relatives, but only after you’ve satisfied the required portions for your children. If you had planned to disinherit any children or provide for an uneven split, this can only apply to the remaining portion of your estate, after the forced heirship rules have been fulfilled.

    Example 1: The $1 Million Estate

    Let’s say John and Mary, a married couple, are considering retiring in France. They have $1 million in assets and two adult children living in the U.S. John and Mary want to divide their estate as follows:

       

        • Child 1 (20%): $200,000

        • Child 2 (60%): $600,000

        • Grandchildren (10%): $100,000 (to be split between four grandchildren)

        • Distant Relative (10%): $100,000 (or possibly a U.S. charity)

      However, since France enforces forced heirship laws, John and Mary’s estate will be affected by these rules, particularly with regard to their children. Here’s how the estate will be divided under French law:

         

          • For Child 1 and Child 2: Under French forced heirship law, the children are entitled to 50% of the estate, which amounts to $500,000 in total (split equally between them, so each child receives $250,000).

          • For the Grandchildren: he remaining $500,000 can be freely distributed according to John and Mary’s wishes. However, they must still respect forced heirship rules. So, the $100,000 allocated for the grandchildren can be given as planned, provided it does not conflict with the portion entitled to the children.

          • For the Distant Relative/Charity: The $100,000 intended for a distant relative or charity can also be freely allocated, provided it does not interfere with the children’s forced heirship rights.

          • The Remaining $300,000: After fulfilling the forced heirship portion, the remaining $300,000 can be distributed as desired. If the will were adjusted to comply with French law, $300,000 could go to Child 2, bringing that child’s total to $550,000. 

        Summary for John and Mary’s Estate:

           

            • Child 1: $250,000 (Forced Heirship)

            • Child 2: $550,000 ($250,000 from Forced Heirship + $300,000 from remainder)

            • Grandchildren: $100,000, split between four grandchildren

            • Distant Relative/Charity: $100,000, freely given

          Important Note: Child 2 did not receive the $600,000 they originally intended. However, with proper estate planning aligned to French law, John and Mary could have structured the estate differently to meet their desires.

          This example demonstrates how, despite John and Mary’s plans to distribute their estate according to their wishes, the forced heirship laws in France ensure that their children receive a significant portion of the estate (50%). Their intentions for the grandchildren and distant relative/charity can be honored, but only after fulfilling the forced heirship requirements for their children.

          Example 2: The $2 Million Estate

          Now, let’s consider Tom and Lisa, who have $2 million in assets and two adult children. They want to divide their estate as follows:

             

              • Child 1 (30%): $600,000

              • Child 2 (50%): $1,000,000

              • Grandchildren (10%): $200,000 (to be split between four grandchildren)

              • Distant Relative (10%): $200,000 (or possibly a U.S. charity)

            However, because Tom and Lisa plan to live in France, the forced heirship laws will apply. Here’s how their estate would be divided under French law:

               

                • For Child 1 and Child 2: Just like in the previous example, Tom and Lisa’s children are entitled to 50% of the estate. This means they are each entitled to $500,000 (for a total of $1 million). This is where the forced heirship laws will impact their planning—Tom and Lisa’s intended distribution of $600,000 to Child 1 and $1 million to Child 2 would not be fully honored. Instead, the estate must be split equally between the children, reducing Child 1’s share to $500,000 and Child 2’s share to $500,000.

                • For the Grandchildren: The remaining $1 million can be freely allocated according to Tom and Lisa’s wishes. They can distribute $200,000 to their grandchildren as they see fit, ensuring that each grandchild receives $50,000.

                • For the Distant Relative/Charity: Tom and Lisa can freely allocate the $200,000 intended for the distant relative or charity, provided it does not interfere with the forced heirship portion for their children.

              Summary for Tom and Lisa’s Estate:

                 

                  • Child 1: $500,000 (Forced Heirship)

                  • Child 2: $500,000 (Forced Heirship)

                  • Grandchildren: $200,000, split between four grandchildren ($50,000 each)

                  • Distant Relative/Charity: $200,000, freely allocated

                Conclusion: As with the $1 million estate, Tom and Lisa’s intended distribution for their children will be impacted by France’s forced heirship rules, meaning they cannot freely allocate the portions they originally planned for Child 1 and Child 2. The grandchildren and distant relative/charity will receive their intended portions, but it’s important to remember that the children’s inheritance must be respected under French law.

                This example demonstrates how the forced heirship laws in France can significantly alter the plans of U.S. expats, regardless of the size of their estate. While Tom and Lisa can still provide for their grandchildren and distant relative/charity, their children’s portion must be split according to French inheritance laws. With careful planning, however, they can still structure their estate to align with both their wishes and the legal framework of their new country of residence.

                What Can U.S. Expats Do About Forced Heirship?

                For U.S. expats planning to move to France (or other countries with similar inheritance laws), here are some strategies to consider:

                   

                    • Revise Your Estate Plan: Ensure your estate plan complies with local forced heirship laws, while still working to meet your goals.

                    • Use Trusts: If possible, establish a trust to manage how your assets are distributed, especially if you have assets in multiple countries.

                    • Consult a Cross-Border Estate Planner: Work with an estate planner who understands both U.S. and local laws, ensuring that your wishes are respected as much as possible under foreign inheritance rules.

                  Inheritance Taxes and Beneficiaries: Who Gets What

                  Under French law, inheritance taxes are not only dependent on the total value of the estate but also on the relationship between the deceased and the beneficiary. France has different tax-free allowances (or “quotité disponible”) based on the beneficiary’s relationship to the deceased, and the tax rates increase with the amount inherited.

                     

                      • Spouse/Partner: In France, the spouse or partner in a civil union (PACS) is entirely exempt from inheritance taxes. This exemption ensures that a surviving spouse can inherit the estate without incurring tax liabilities.

                      • Children: In the case of children, there is a tax-free allowance of up to €100,000 per child (as of the 2025 tax year). Anything above this amount is subject to tax at a progressive rate, ranging from 5% to 45%, based on the amount inherited.

                      • Grandchildren: For grandchildren, the tax-free amount is €1,594 per grandchild (as of 2025), but anything beyond that will be taxed at a higher rate, starting at 20% and rising to 60% for larger estates.

                      • Other Relatives (Non-Direct Line): Distant relatives, such as siblings, nieces, nephews, or friends, face a much higher tax burden. The tax-free amount for siblings is €15,932, and for more distant relatives or non-relatives, the tax-free amount is even lower, often just €1,594. Taxes for these beneficiaries can range from 35% to 60%.

                    Understanding these allowances and tax rates is crucial for U.S. expats, especially when planning for wealth distribution among family members. Since inheritance taxes are closely tied to who the beneficiary is, careful consideration is needed in your estate planning to minimize tax liabilities.

                    Because inheritance taxes can significantly affect your heirs’ share, we will cover this topic in more detail in a separate Deeper Dive report.

                    In Summary

                    Forced heirship laws can create complexities in your estate planning, especially if you’re moving to a country like France. While the laws ensure certain family members are guaranteed a portion of your estate, they can conflict with your wishes. In both examples, the parents’ desired estate distribution for their children, grandchildren, and distant relatives or charities is affected by forced heirship rules, demonstrating the importance of consulting professionals when planning for retirement abroad.

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