French Government Proposes Inheritance Tax Reforms in 2027 Budget to Ease Family Wealth Transfers

The French government has unveiled proposals in the 2027 budget plan aimed at facilitating family wealth transmissions through significant reforms to inheritance taxation. According to a note titled "Transmissions 2027" reviewed by Le Monde, these reforms could lower the age at which heirs receive their first inheritance and reduce overall inheritance tax liabilities, potentially encouraging smoother intergenerational wealth transfers.

Separately, Sébastien Lecornu announced on the social platform X new measures aimed at increasing exemptions on family cash gifts. This change would enable individuals to gift larger amounts of money to family members without being taxed. Lecornu also indicated plans to lower taxation rates on traditional donations, further reducing the financial burden on family wealth transfers.

These combined reforms form part of the draft finance law for 2027, signaling the government’s intent to make inheritance and gift taxation more favorable. The measures could ease the fiscal impact on heirs and donors alike, supporting family wealth succession in France.

By potentially lowering the threshold age for receiving the first inheritance, the government aims to streamline financial support between generations sooner than current standards allow. The increased exemptions on cash gifts and decreased donation taxes would provide immediate tax relief for families, incentivizing wealth transmission without incurring steep taxes.

Quotes from the government highlight these reforms as essential to making family wealth transitions simpler and more equitable. As these proposals proceed through the legislative process, their adoption could reshape the landscape of inheritance taxation starting in 2027.