Using Life Insurance to pay foreign taxes

efkay

In all honestly I didn't really know how to word the title of this thread; so please bear with me whilst I explain.

I'm a French resident of some 9 years without spouse, parents, siblings or children and have decided to leave my sole property, here in France, to my nephew. Sadly French succession law and inheritance issues means that he will have to pay the French government 60% of the house's value on my demise in order to inherit this house.

Would it be feasible for him to take out a life policy on my life which would pay out, say £100,000, which when I finally pop my clogs should be sufficient to cover this tax?

If this is a possibility, which type of insurance should he take out, bearing in mind that whilst I'm in good health and don't smoke, I have just turned 60 years of age. Would there be any other way to deal with this tax issue? Trust fund?

Any suggestions would be most welcome.

castle96

pretty sure that in this country, he would have 'insurable interest ' in you, but France... check there ?

efkay

It would appear that the recipient of proceeds from a French life policy would be liable to tax, therefore defeating the object of this exercise I fear!