This year, it is very much in the interests of people inheriting property under French law as bare owners to apply for the payment of death duties to be deferred until the life tenant dies, and to put the money owed to the public treasury into a bond investment.
This year, it is very much in the interests of people inheriting property under French law as bare owners to apply for the payment of death duties to be deferred until the life tenant dies, and to put the money owed to the public treasury into a bond investment.
Why? Because, although the option to defer is not a new one, it is of particular interest this year.
The statutory interest rate for 2010, which has been set at 0.60% for the year, is the lowest it has ever been (in 2009, it was 3.70%). This means that for every deferment request made this year, the rate will apply for the entire duration of the deferment, in other words until the life tenant dies or the property divided between the life tenant and the bare owner is sold.
So why pay the death duties immediately when putting this money into a bond investment could earn you the difference between the bond yield and the rate of 0.60% every year?
Gaultier Lauriau, director of Aviva's property arm, is waiting to hear from you if you would like to learn more about the principle and advantages of deferring the payment of death duties.
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Press contacts:
Karim Mokrane (Aviva)
Telephone: 01 76 62 76 85
E-mail: karim_mokrane@aviva.fr
Valérie Dudoit (HDL Communication)
Telephone: 01 58 65 20 16
E-mail: vdudoit@hdlcom.com