When U.S. Estate Planning Meets French Law: What American Families Discover After Moving
Introduction
American families are often exceptionally well-prepared when it comes to estate planning. Many have revocable trusts, detailed beneficiary designations, and a clearly articulated strategy designed to protect their spouse, children, and estate. These structures reflect a legal culture built on anticipation, autonomy, and flexibility.
However, once these families relocate to France, they often discover that the French legal system interprets their U.S. structures in a fundamentally different way. Not in a negative sense, but because French law — grounded in civil law principles — uses concepts that simply do not exist in common law. As a result, structures that worked perfectly in the United States may need to be understood, translated and adapted to function correctly in France.
This article outlines what American families typically understand immediately, what they only discover upon arrival in France, and why a cross-border legal translation is essential for a smooth transition.
1. What Americans Understand Immediately: Planning and Purpose
One of the strengths of U.S. estate planning is its clarity.
Before arriving in France, most families already have:
a revocable trust with clear powers and succession rules,
beneficiary designations for insurance and retirement accounts,
a structure aligning with their family situation,
written intentions that anticipate incapacity or death.
Even when the trust is several decades old, the logic is consistent:
anticipation, protection, and administrative efficiency.
This mindset is familiar to French practitioners, even when the legal tools are different.
But the challenge begins when U.S. documents must be reconciled with French law.
2. What Families Discover in France: A Different Legal Lens
France does not recognize the trust as a legal person.
This means that:
the trust is not an entity,
it does not own assets in the French civil-law sense,
and its treatment depends on its internal functioning, not on its U.S. classification.
French inheritance law, reporting obligations, wealth tax rules, and tax concepts must all be applied through this civil-law lens.
Common discoveries include:
A U.S. revocable trust is not automatically considered transparent.
Beneficial ownership must be reassessed according to French criteria.
Distributions to French residents may be taxable.
Trusts create reporting obligations in France, regardless of U.S. compliance.
Succession planning may be impacted by French forced heirship rules.
The trustee’s powers matter more than the trust’s name or U.S. classification.
In short, France does not dispute the existence of the trust; it simply needs to interpret it through its own legal framework.
3. “We Thought the Trust Covered Everything” — A Common Misconception
One of the first things American clients often tell me once they settle in France is:
“We thought the trust would cover everything.”
It usually does —
but only once the structure has been properly analyzed and adapted to fit French rules.
Questions that never arise in the U.S. suddenly become central:
Who is considered to hold the assets for French law purposes?
How will the trust be treated for inheritance tax?
What happens if a beneficiary becomes French tax resident?
How are distributions taxed in France?
What needs to be declared — and by whom?
How does the trust interact with French forced heirship (and the 2021 clawback rule)?
How should the structure be disclosed in the French annual trust filings?
The trust continues to operate — but it must be translated into French legal concepts.
4. The Importance of a Cross-Border Interpretation
The objective is never to dismantle a well-designed U.S. estate plan.
Instead, the aim is to ensure it:
remains legally valid in France,
aligns with French inheritance rules and tax obligations,
avoids double taxation,
maintains its protective function,
and minimizes reporting or audit risks.
This requires:
understanding the trust deed’s mechanics,
reviewing trustee powers,
identifying the relevant beneficiaries under French law,
aligning the U.S. estate plan with French succession law (including Brussels IV elections),
coordinating with U.S. counsel to avoid unintended consequences.
The role of the advisor is not to impose complexity where it is not needed.
It is to ensure clarity — so that the structure works naturally and reliably within a new legal environment.
Conclusion
When American estate planning meets French law, the structure does not break — but it must be translated. Concepts such as transparency, control, and ownership are assessed differently in France, and families quickly discover that assumptions based on U.S. practice do not always apply.
With the right analysis, however, U.S. trusts and estate plans function effectively in France. The key is not rewriting everything, but understanding the legal logic on both sides of the Atlantic and ensuring alignment.
Contact Us
If you are preparing a move to France or reviewing your cross-border structure, feel free to contact us. Our firm advises U.S. and international families on French tax, estate and property matters.