What international families with French assets need to know
In a significant decision for international estate planning, the French Cour d’appel de Versailles ruled on 6 November 2025 that a child may exercise a droit de prélèvement compensatoire (compensatory levy) against assets located in France, even where the deceased validly selected a foreign succession law that does not recognise forced heirship.This judgment confirms the practical impact of the 2021 amendment to Article 913 of the French Civil Code and sends a clear signal to non-French nationals and non-residents who own French real estate or other French-sited assets: choosing a foreign succession law is not currently considered sufficient, on its own, to exclude French forced heirship claims.
For internationally mobile families, Monaco residents, and global investors with property in France, this ruling materially alters the estate planning landscape.
Forced Heirship in France: A Brief Reminder
French succession law is built around the principle of réserve héréditaire. Children are entitled to a minimum share of their parent’s estate, regardless of the parent’s wishes. Depending on the number of children, the reserved portion ranges from one-half to three-quarters of the estate.For many years, this strict regime could be mitigated in international situations. Under the EU Succession Regulation (Regulation (EU) No. 650/2012), a person could choose the law of their nationality to govern their succession (professio juris). For nationals of countries such as the UK, United States, Monaco, or Israel, this often meant applying a law allowing full testamentary freedom, including disinheritance of children.
In 2017, the French Supreme Court confirmed that the absence of forced heirship under a foreign law was not, in itself, contrary to French international public policy. This encouraged many foreign owners of French property to rely on foreign law wills to bypass French forced heirship.
That position changed in 2021.
The 2021 Amendment to Article 913: The Compensatory Levy Returns
Effective for deaths occurring on or after 1 November 2021, France amended Article 913 of the Civil Code to reintroduce a compensatory levy mechanism in cross-border estates.Where the law governing the succession does not protect children’s reserved rights, qualifying heirs may claim a compensatory levy against assets located in France, to restore the inheritance share they would have received under French law.
This mechanism applies if:
- The foreign law governing the succession contains no forced heirship protection for children;
- At least one of the following applies at the time of death:
- the deceased was an EU national or habitually resident in the EU, or
- at least one child was an EU national or habitually resident in the EU;
- The estate includes assets located in France; and
- A child actively asserts the claim.
French notaires are required to inform heirs of these rights and cannot complete the estate distribution without addressing them.
The Versailles Decision: Article 913 Tested and Applied
The 6 November 2025 decision of the Cour d’appel de Versailles represents one of the first appellate-level confirmations of how this mechanism operates in practice.In the case, the deceased had validly designated a foreign succession law that did not provide forced heirship protection for children. A child with a qualifying EU connection challenged the distribution and claimed a compensatory levy against assets located in France.
The Court upheld the child’s claim, authorising the compensatory levy and rejecting arguments that the foreign law choice should prevail over French forced heirship protections for French assets.
Importantly, the Court did not characterise the rule as discretionary or exceptional. It applied Article 913 as drafted, confirming that French assets remain exposed where the statutory conditions are met.
This decision confirms that the compensatory levy is not theoretical. French courts are prepared to enforce it, notwithstanding carefully drafted foreign law wills.
Who Is Most Affected?
The ruling is particularly relevant for:
Monaco residents
Many Monaco residents own French real estate on the Riviera. Monaco law permits broad testamentary freedom for certain foreign nationals, but where a Monaco resident has children with EU nationality or residence, French assets may still be subject to forced heirship claims.
UK nationals
British nationals frequently rely on English law wills to leave assets to a surviving spouse. Where French property is involved and there is an EU connection, children may now insist on a French reserved share from French assets, even on first death.
US and other non-EU nationals
Americans and other non-EU nationals owning French property may be exposed if either they or one of their children has EU nationality or residence. This includes situations where children later move to the EU.
International families with mixed nationalities
Blended families, dual nationals, and globally mobile heirs face particular uncertainty. A single EU-resident child can be sufficient to trigger the mechanism.
In short, French assets can no longer be considered insulated simply because the owner is not French.
Many Monaco residents own French real estate on the Riviera. Monaco law permits broad testamentary freedom for certain foreign nationals, but where a Monaco resident has children with EU nationality or residence, French assets may still be subject to forced heirship claims.
UK nationals
British nationals frequently rely on English law wills to leave assets to a surviving spouse. Where French property is involved and there is an EU connection, children may now insist on a French reserved share from French assets, even on first death.
US and other non-EU nationals
Americans and other non-EU nationals owning French property may be exposed if either they or one of their children has EU nationality or residence. This includes situations where children later move to the EU.
International families with mixed nationalities
Blended families, dual nationals, and globally mobile heirs face particular uncertainty. A single EU-resident child can be sufficient to trigger the mechanism.
In short, French assets can no longer be considered insulated simply because the owner is not French.
Practical Consequences in Estate Administration
In practice, this means:
- French notaires are increasingly freezing distributions pending heir consent;
- Estates may face forced sales or liquidity issues to fund reserved shares;
- Estate plans favouring spouses or specific beneficiaries may be disrupted;
- Inheritance tax exposure may increase unexpectedly, particularly where assets pass to children rather than spouses.
Planning Considerations and Mitigation Strategies
While the Versailles decision reinforces the reach of French forced heirship, careful planning can still mitigate risk.Ownership structures
Holding French property through a corporate structure may, in certain cases, shift the situs of the asset from French real estate to foreign shares. This requires careful analysis, as French tax and anti-abuse rules apply.
Life insurance (assurance-vie)
Properly structured life insurance can provide liquidity or alternative benefits outside the estate, though excessive premiums may be challenged.
Liquidity planning
Ensuring sufficient liquidity to satisfy potential reserved share claims can prevent forced sales of French property.
Family agreements
In some cases, heirs may be willing to waive claims or enter into inheritance pacts, though these require strict formalities and careful timing.
Regular review
Nationality, residence, and family circumstances evolve. Estate plans should be reviewed periodically, especially where children relocate within the EU.
Legal Uncertainty Remains, But Risk Is Immediate
Questions remain as to the compatibility of Article 913 with EU law, and future challenges may arise before the European courts. However, until any change occurs, the rule is operational.The Versailles decision confirms that relying on a future legal reversal is not a strategy.
How Rosemont Monaco Can Assist
At Rosemont Monaco, we advise private clients and their professional advisors on complex cross-border estate and tax planning involving France, Monaco, and international jurisdictions.We help clients:
- assess exposure to French forced heirship risks,
- restructure ownership and succession strategies,
- coordinate wills, entities, and insurance solutions, and
- align estate planning with tax efficiency and family objectives.
If you or your clients own assets in France, now is the time to review existing estate planning arrangements.
Contact us consulting@rosemont.mc
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