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The Law on Fiduciary of February 19, 2007 introduced section XIV "Fiduciary" into the French Civil Code.

The institute of "trust" was introduced in France in 2007. Taking into account its peculiarities, in comparison, for example,with the Anglo-Saxon trust (trust) and the Russian trust management (DU), in this note we will refer to it under its French name fiducie [fiducie].

According to Article 2011 of the French Civil Code (GCF), fiducie is a transaction through which one or more founders transfer assets (existing or to be acquired in the future), or part of it, to a trustee (fiduciary), who separates it from his own property in order to carry out actions for the benefit of one or more beneficiaries with a predetermined purpose.

At the same time, there is a so-called separate ownership in the balance sheet of the fiduciary. In this, fiducie is similar to trust, but differs from DU, in which there is no transfer of ownership. However, fiducie is not about an absolute transfer of ownership, but about a conditional and targeted one. The entire fiducie legal regime, carefully developed by the French legislator, is aimed at effectively protecting the rights of the founder and beneficiary.

Before outlining the legal regime of fiducie, one should familiarize oneself with the practical application of fiducie (The Fiduciary Act of February 19, 2007, which introduced section XIV "Fiduciary" into the French Civil Code.).

Practical applications of fiducie

Fiducie is as rich in its practical applications as trust. Just like the latter, it can be used as a means of management (A), guarantee or enforcement of obligations (B) or alienation of property (C).

a) Fiducie-management

In this type of fiducie, property can be transferred to a fiduciary for a variety of purposes, the main of which are set out below. In all these operations, fiducie often acts as a means of efficient, economical and anonymous asset management...

This note describes the main tax aspects of inheritance in France, given that the principles of inheritance contained in the Civil Code do not differ fundamentally from the provisions of other countries of continental law.

Inheritance of property — inheritance tax

Unless otherwise provided by international agreements, the following general principles apply.

When purchasing real estate in your own name, French tax law applies, which establishes a progressive inheritance tax.

• Real estate in France or shares of companies owning real estate are accepted for calculation.
• After that, a fixed amount is deducted from this tax base, for 2023 it is 100,000 euros
• The result obtained after this deduction is the tax base.

The general rule applies to inheritance tax on shares of civil society in real estate, according to which both the increased value of shares and the current account are taxed in France, except for some exceptions provided for by agreements.

Real estate in France or shares of companies owning real estate are accepted for calculation. In this case, the shares are estimated at the market value of the asset on the day of death, minus the company's liabilities, for example, debts to third parties...

Article l.426-20 of the Сode on the entry and stay of foreigners — article l.426-20 ceseda

"A foreign citizen who provides proof that he can live on his own means, which must be at least equal to the annual net minimum wage, regardless of the allowance for adults with disabilities mentioned in article L. 821-1 of the Social Security Code and the additional allowance mentioned in article L. 815-24 of the same Code, receives a temporary residence permit marked "visitor" for a period of one year. He must also prove that he has medical insurance covering the duration of his stay and undertakes not to engage in any professional activity in France. Despite article L. 414-10, this card does not give the holder the right to engage in any professional activity. The conditions for the application of this article are determined by a decree of the State Council."

Documents

• Passport (Foreign passport) — all pages
• Internal passport — pages of civil status and registration
• Birth certificate (translated into French with apostille)
• Marriage certificate (translated into French with apostille), if applicable...