How Joint Assurance Vie Policies Can Delay Inheritance

This case study explains why aligning legal structure with inheritance goals is essential.

The situation. British retirees Peter (77) and Denise (69)*, live in France and share one assurance vie policy. Their goal is to pass their wealth on to their two children. However, as they’re married under the French legal regime, the fact that they have a joint assurance vie delays inheritance until the second death, meaning the children miss out on the €152,500 tax-free allowance available on each parent’s policy, if invested before the age 70.

The outcome. To align their planning with their wishes, Denise (still under 70) should disinvest at least 50% and open an individual policy in her own name. The plan must also protect the surviving spouse with access to capital for future care needs. 

The solution? A split-beneficiary clause (clause bénéficiaire démembrée) naming the spouse as usufructuary (usufruitiére) and the children as bare owners (nue propriétaire). If the funds are used, the children retain a legal claim (droit de créance) on the estate.

Key takeaway. This structure preserves allowances, protects the survivor and secures the children’s inheritance. Note that only an adviser with the CJA (Conseiller en Gestion de Patrimoine) is legally authorised to draft this clause.

DTB Wealth Management is registered as a CJA, please reach out if we can help you restructure your policies to reflect your succession wishes.

*Names have been changed for confidentiality.