During an inheritance, carrying out an inventory in order to evaluate the movable assets of the deceased’s real estate assets (furniture, jewelry, paintings, etc.) can allow the heirs to reduce the bill to be paid to the tax authorities. Explanations.
When a person dies, their estate begins. This can consist of real estate, cash in bank accounts or savings accounts. But it is often also made up of furniture, jewelry or other tableware. All of these assets which furnish the real estate assets are, in principle, valued on a lump sum basis, height of 5% of the gross estate assets.
But it is possible to escape this bar by having an inventory carried out. In this case, the value of the goods will be assessed according to their real value and not a fixed amount.
A recommended, even obligatory, estate inventory
Let’s take the example of real estate, worth 250,000 euros. With the flat rate of 5%, the movable property will be valued at 12,500 euros. But carrying out an inventory reveals that all the goods furnishing the residence have a value of only 6000 euros. Instead of paying inheritance tax on the fixed value of 12,500 euros, the heirs will pay it on the actual value, i.e. 6,000 euros.
In certain cases, an inheritance inventory is indeed recommended: to reduce inheritance taxes, but also in the case where the heirs do not agree on the distribution of the furniture between them. This makes it possible to have an evaluation and to make lots awarded by drawing lots to the heirs, explains Maître Jeanne Grouhel, notary in Concarneau.
There are also cases where carrying out an inventory is mandatory: for example, when one of the heirs is legally protected because he is a minor child or an adult under guardianship or curatorship.
Inheritance: who pays inheritance tax and how much?
600 euros to have an inventory carried out by a notary
The notary can take responsibility for carrying out the inventory himself if he has knowledge of movable valuation. In this case, the cost is around 600 euros. Otherwise, we appeal to a justice commissioner. In this case, the expert’s fees as well as travel costs are added, specifies Maître Grouhel.
An expense that may however be worth the cost. In fact, the savings made thanks to an inventory can be substantial. Let’s take the example of a lady who leaves several great-nephews as heirs. His property (an apartment and various investments) has a value of 600,000 euros. The tax scale rises to 55% after deduction. Better to pay duties on the market value of the furniture (estimated at 6,000 euros during an inventory) than on the flat rate of 5% (30,000 euros) and thus reduce the tax bill (the saving is 13,200 euros), illustrates, in a practical casethe chamber of notaries of Yvelines and Val-d’Oise.
Calculation, reductions… Everything you need to know about inheritance tax