Inheritance tax – What candidate Macron promises – Newsroom

The presidential program of candidate Emmanuel Macron provides for an inheritance tax exemption of up to 150,000 euros per child and up to 100,000 euros passed on to other family members. Decryption.

While current legislation already allows almost 85% of the French to avoid inheritance tax and the richest to pass on their wealth to their relatives at a lower cost, some presidential candidates are proposing to further reduce inheritance taxation if elected. Emmanuel Macron, a candidate for his own re-election, is one of them. His program plans to increase the allowance related to inheritance between parents and children to 150,000 euros. First of all, he proposes to create a new allowance of 100,000 euros for inheritance between other members of the same family.

Property Inflation Compensation

Now each child receives an allowance of 100,000 euros for the inheritance passed on by each of the parents. He only has to pay inheritance tax if he earns more. Then he must pay inheritance tax to the tax authorities at a progressive rate, the rates of which vary from 5% to 45%. According to Emmanuel Macron, an increase in this allowance to 150,000 euros will compensate for the surge in property prices observed in recent years. Thus, the majority of the French, whose assets mainly consist of real estate, could pass on the fruits of their labor to their children without taxes.

Good to know. Donations to children are also eligible for a €100,000 deduction to calculate the right to donate, which is renewed every 15 years. Emmanuel Macron’s program does not specify whether the increase to 150,000 euros will apply to in vivo asset transfers.

Family Inheritance Optimization

The rest of the heirs also receive an allowance for their share of the inheritance, but it is much less generous: €15,932 for siblings, €7,967 for nephews and nieces, and €1,594 for all other heirs (additional allowance of €). 159,325 is granted to each disabled heir). In addition, they must pay inheritance tax ranging from 35% to 60%, depending on their relationship with the deceased. Providing them with an allowance of 100,000 euros will allow them to receive more tax-free funds.

This new allowance will apply to inheritance passed on to all family members of the deceased, except for his children. Thus, this measure will facilitate familial collateral transmission (brothers, sisters, cousins, etc.) and intergenerational (grandchildren, great-grandchildren). Emmanuel Macron clarified that this would also benefit the children of the spouse in order to better take into account the situation of mixed families. On the other hand, other heirs not related to the deceased will be excluded. The partner, for example, will continue to receive an allowance limited to 1594 euros on his inheritance and pay an inheritance tax of 60% on top of that.

Proposals from other candidates

Right-wing presidential candidates are going further than Emmanuel Macron in reforming inheritance taxation. Valerie Pekress proposes to increase the allowance to 200,000 euros for children’s inheritance and up to 100,000 euros for brothers, sisters, nephews and nieces. For donations, he also wants to reduce the period after which these benefits are restored to 6 years from 15 years currently. Marine Le Pen, for her part, is proposing tax exemptions on family donations of up to €100,000 every 10 years. As for Eric Zemmour, he also wants to tax-free inheritance in a direct line up to 200,000 euros, as well as the transfer of family business from generation to generation.

Candidates on the left, on the other hand, plan to increase inheritance taxation instead. Yannick Jadot, the Green candidate, wants to limit the allowance to 200,000 euros on all assets inherited during a lifetime. He advocates taxing individuals based on whatever they receive, so that those who inherit more will be taxed at higher rates. He also proposes to remove some benefits, such as preferential taxation of life insurance’s death benefit. Finally, La France insoumise candidate Jean-Luc Mélenchon wants to tax 100% of estates worth more than 12 million euros.

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