Since October 1, 2019, the Retirement Savings Plan (PER) is available. This was created to gradually replace the other similar savings plans that have been present so far. It now comes in three forms:
Many people have subscribed to this savings plan. However, many are wondering what will happen to the capital accumulated in the event of death. “The savings will be paid in the form of a capital to your designated beneficiaries if it is an insurance PER (a PER in the form of life insurance), or transmitted to your heirs if it is This is a bank PER (in the form of a securities account). And this, whether or not your plan is available at the time of your death,” explains Valérie Bentz, Head of Wealth Studies at the Union Financière de France in Le World.
But there are still peculiarities. Indeed, depending on the age of death, the capital will be more or less subject to inheritance tax.
In the event of death before the release of the PER, the sums saved must therefore be paid back to the heirs or beneficiaries in the form of capital or an annuity. However, depending on the age at which the saver dies, the situation may vary.
If the death occurs before the age of 70, “a reduction of €152,500 is applied to the sums paid on the contract. The surplus is imposed on inheritance rights”, explains the website of the Ministry of the Interior.
Conversely, in the event of death after this age, “the part of the sums paid into the insurance contract which exceeds €30,500 is subject to inheritance tax”.
But in the event of death, is the situation similar for older generation retirement savings plans?
If it is no longer possible to open a PERP or to subscribe to a Madelin contract (reserved for the self-employed), some savers still have capital on these old-generation retirement savings plans.
Unlike the classic PER, in the event of death, payment to beneficiaries is only possible as an annuity, unless it is very low, specifies Le Monde. Thus, it is preferable to transfer its funds to a PER.
Similarly, whether it’s an old or new savings plan, it can be smart to do “an estate review before age 70 [which] allows you to measure the impact and possibly decide to replace the funds on a life insurance”, explains Valérie Bentz to our colleagues.