This is limited interest, but can be of assistance in certain circumstances, in particular on the decease of a French resident settlor or a beneficiary deemed to be such.

Article L 21 B of the Livre des Procedures Fiscales enables a taxpayer subject to droits de mutation gratuit - gift or succession duty - to request that the administration audits a gift or succession declaration in order to provide legal certainty as to its treatment. This has the effect of reducing the prescription period.

It does not directly apply to Wealth Tax (ISF), but as ISF and its replacement IFI are both collected on a similar basis and principles, and the levy collected in a hybridly similar  manner, this will have subsequent effects on the taxation of the trust concerned.

In certain complex discretionary or accumulation and maintenance trust situations, this will enable the trustees to require clearance on the apportionment of the trust fund, where there are also non-resident beneficiaries.

Peter Harris can assist in this.