Inheritance: Paying Inheritance Tax Is Now Easier

A decree recently published in the Official Journal on December 28 provides clarification on the procedure to follow in order to take advantage of payment arrangements in the event of an estate, with these rules set to take effect on February 1. 

When a loved one passes away, the issue of inheritance arises, but settling the related obligations can be complex for the heir. In fact, the estate taxes owed to the Treasury can be substantial, especially since the deadline for payment is set at 6 months after the death.

Faced with the inability to pay this amount within the prescribed time limit, taxpayers had the option of requesting a concession from the French Ministry of Finance, in the form of a payment extension, which could take the form of an installment plan or a deferred payment in certain situations, thereby allowing them the time needed to raise the required funds. However, until now, this request was subject to strict conditions. The good news is that a recent decree simplifies these procedures.

Previously, the debtor and the public accountant had a single 4-month period to provide collateral and rule on the credit request intended to cover estate expenses. The new decree, published on December 28, 2023, modifies this timeline. From now on, the public accountant has two months to review the credit request, separate from the four-month period allotted to the liable party to provide collateral. In addition, the period granted to the credit recipient to provide additional collateral after the credit has been approved is extended from one to two months.

As of February 1, 2024, an heir who submits a request for a loan to cover estate settlement expenses will receive a response from the public accountant within two months. If the request is deemed admissible, the taxpayer will then have four full months to provide the necessary collateral. According to information from the Capital website, this request may be made at the bottom of the estate tax return or attached to it on a separate sheet of paper (General Tax Code, Art. 399). The decree also facilitates the option to submit this request online via the impots.gouv website. However, the heirs concerned may have to wait, as this online option is expected to be operational no later than January 1, 2027.