Is opening an assurance vie saving account viable after you reach 70 years old?


YES, because the amount you invest from this age is entitled to a death duty allowance of 30 500.

This allowance is added to the one you were already entitled to before you were 70 years old (152 500€ per beneficiaries).

E.g.: You have invested 305 000€ on an assurance vie saving account before you were 70 years old and named two beneficiaries. This sum of money will be given to your beneficiaries named without any death duties (152 500€ allowance per beneficiaries).        

After you’re 70 years old, you open a new assurance vie saving account with 30 500€ and name the same two beneficiaries, you can therefore pass on to them free of any death duties 335 500€ (305 000+ 30 500).

Furthermore, the interests or gain made by this contract are not liable to death duties.

E.g.: You invest 30 500€ after your 70 years. At your death at the tender age of 85, this assurance vie saving account is worth 40 000€ (30 500€ of capital and 9 500€ of interest). The beneficiary you have named will get the sum of 40 000€ without any death duties.

As a reminder, here are the allowances before death duties in France (outside Assurance vie saving account):

Children : 100 000€

Gran-children : 1 594€

Brother or sister : 15 932€

Nephew or niece : 7 967€

Other : 1 594€

E.g.: You wish to leave a lump sum of money to your grand-son upon your death. You write a will in which you state that you are leaving him one of your saving accounts currently at your bank (like a Livret A or PEL) of a value of 20 000€. On your death, your grand-son will have to pay death duties of the amount of 18 406€ (20 000€-1 594€). If you invest this money in an assurance vie saving account and name your grand-son as beneficiary, he will have no death duties to pay at all.

So, whether you have opened an assurance vie before you were 70 or not, it is worth thinking of opening a new one now!!

No, this is NOT a life insurance!! Assurance vie is a saving account!

Assurance vie saving account has been so successful that today there are over €1.5 trillion invested in Assurance vie policies. Over 22 million individuals have either invested lump sums or save regularly using this instrument.

General information on assurance vie: It’s a saving/ investment account. The money you invest is available at any time. You name beneficiaries when you set it up. You are only taxed on interest, not capital (and only when you take money out). You can set up regular Monthly/ Quarterly or Yearly withdrawal from it. You can invest in it one lump sum (min €5000) or regular Monthly amount (min €100/Month) or both! You can check what it is doing via your online customer account (even make a withdrawal).

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