🏛️ Real Estate Heritage:
Transmission, Value and Strategy.

1. Inheriting real estate: What you need to know

Inheritance of real estate in France is governed by specific rules in the Civil Code. Several steps are triggered as soon as the estate is opened:

• Opening of the estate at the notary's office;

• heirs or testamentary

• Real estate asset valuation for the calculation of taxes;

• Payment of inheritance tax, which may vary depending on the relationship.

Good to know : Children who are direct heirs benefit from an allowance of €100,000 each (as of January 1, 2025), beyond which progressive rates apply.

2. A valuable asset… but sometimes a constraint

Beautiful homes, while prestigious, can present maintenance, tax, or management challenges. Before accepting an inheritance, several questions must be asked:

• Is the property vacant or occupied?

• Are any renovations planned?

• Is the property listed or registered as a historical monument?

• Is it profitable if rented out?

Accepting an inheritance of real estate should never be automatic. It is possible to accept itup to the value of the net assets, or to refuseif the debts or liabilities exceed the estimated value.

3. Passing on a prestigious property: Planning ahead is key to preservation

For owners of beautiful homes, planning for the transfer of ownership is essential to avoid conflicts and minimize taxes. Here are some options to consider:

▪ The donation

It allows for the transfer of assets during one's lifetime, benefiting from allowances that can be renewed every 15 years. A gift-partition also clarifies the distribution among heirs.

▪ Usufruct / bare ownership

The division of ownership allows a parent to retain the use of an asset while transferring the bare ownership to their children, optimizing the transfer.

▪ The real estate civil society (SCI)

Creating a SCI allows for flexible management, gradual transfer through shares and better asset organization.

4. Preserve the heritage value of a beautiful home

Transferring ownership of a prestigious property is not simply a matter of notarial procedures; it also involves a commitment to its preservation. Owners concerned about the future of their property must:

• Maintain the property regularly (facades, roof, exteriors);

• Documenting the history of the place (archives, photos, family stories);

• Enhancing the property through discreet improvements : modern comfort, security, home automation;

• Have the property appraised periodically to monitor its value.

5. Receiving family property: what strategy to adopt?

Once the property is inherited, the heir must choose between:

▪ Preserve the property

It then becomes a living family asset, to be occupied, rented out, or simply maintained. This is most often the case for holiday homes or luxury residences.

▪ Resell

If the property is too expensive to maintain or the siblings cannot agree, selling it may be considered. In this case, it is essential to enlist the help of a luxury real estate agency to reach qualified buyers.

▪ Rent out

( Luxury or seasonal furnished rentals e.g., in Provence or on the French Riviera) can generate income while keeping the property within the family.

6. The key role of the notary and experts

In any real estate inheritance process, the notary plays a central role: they ensure legality, tax compliance, and secure the transfer. But it is also wise to seek professional advice:

• from a real estate expert for the evaluation;

• from a wealth management advisor to optimize the transfer;

• from a heritage architect for listed properties.

7. Some typical examples of real estate inheritance

• A bourgeois house in Bordeaux, passed down for four generations, transformed into a high-end guest house;

• A family farmhouse in Provence, renovated and available for seasonal rental in Gordes;

• A private mansion in Paris, passed down via a SCI (real estate investment company) between several children;

• A castle in the Loire, partly ceded to a heritage foundation to ensure its long-term maintenance.

8. Taxation and aid for heritage preservation

Some forms of assistance are available to support homeowners:

• Tax reduction for work on historical monuments ;

• Partial exemptions for listed properties;

• Regional or DRAC subsidies for heritage restoration.

9. The symbolic dimension of transmission

Passing on a beautiful home is not simply about transferring real estate. It's about offering a place of memory, a source of identity, sometimes even a living work of art. It is therefore essential to have family discussions, to explain the history of the place, and to share a vision for its preservation.

List your family property on Charming Properties

Do you own an inherited property, a family home to pass on, sell or appraise? The portal www.proprietesdecharme.com allows you to showcase this heritage to a discerning public, lovers of character homes.

Our partner agencies, specialists in high-end real estate, also assist you with:

• Estimate the value of your inherited property,

• Finding a passionate buyer,

• Optimize the presentation and transmission of your assets.