Q&A Corner – Can a child inherit €100,000 tax-free from their parents and receive €152,500 from an assurance vie contract without triggering taxes?

Q: Can a child inherit €100,000 tax-free from their parents and receive €152,500 from an assurance vie contract without triggering taxes?

A: Yes, a child can benefit from two separate allowances, the two do not overlap:

• Inheritance allowance. Under French inheritance laws, each child is entitled to inherit up to €100,000 tax-free from their parent’s estate, excluding any amounts from the assurance vie.
• Assurance vie allowance. If the parent has an assurance vie policy, the child can receive up to €152,500 tax-free, as long as the premiums were paid before the parent’s 70th birthday.

Example. If a parent leaves €150,000 in assets and €152,500 in an assurance vie policy, €100,000 of the assets is tax-free, with the remaining €50,000 subject to tax, while the entire €152,500 from the assurance vie remains tax-free.