The first French modified Finance Law 2011 nº 2011-900, which was published on 29 July 2011 and came into force on 31 July 2011, has enacted a specific tax regime applicable to trusts.  A tax ruling from the French tax administration dated 23 December 2011, a decree dated 14 September 2012 and three tax guidelines from the French tax administration dated 16 October 2012 have supplemented this law.

First, a definition of a trust (a definition that will apply to all provisions of the French tax code) and of the settlor (a definition applying only to the provisions relating to the wealth tax and the registration duties has been provided.

The trust is then defined as all the relationships created in a country other than France by a person (the settler) by an inter vivos deed or by a will at death to put goods or rights under the control of a trustee in the interest of one or several beneficiaries, or for the realisation of a precise purpose.

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