French General Tax Code
In forceThe assets mentioned in article 965 given a usufruct, a right of habitation or a right of use granted on a personal basis are included in the assets of the usufructuary or the holder of the right for their full ownership value.
However, provided, in the case of usufruct, that the right constituted is neither sold nor transferred free of charge by its holder, these assets encumbered by the usufruct or the right of use or habitation are included, respectively, in the assets of the usufructuary or the bare owner according to the proportions set by article 669 when:
1° The creation of the usufruct results from the application of article 757 of the Civil Code, of article 767 of the same Code as it read prior to Act No. 2001-1135 of 3 December 2001 relating to the rights of surviving spouses and adulterine children and modernising various provisions of inheritance law, of article 1094 of the said code in its wording prior to Law no. 2006-728 du 23 June 2006 portant réforme des successions et des libéralités or article 1098 of the same code. Property the ownership of which is dismembered pursuant to other provisions, in particular article 1094-1 of the same code, may not be subject to this apportioned taxation;
2° The dismemberment of ownership results from the sale of a property of which the seller has reserved the usufruct, right of use or dwelling and the purchaser is not one of the persons mentioned in Article 751 of this code;
3° The usufruct or the right of use or habitation has been reserved by the donor of a property which has been the subject of a gift or a legacy to the State, a department, a commune or a syndicate of communes or their public establishments, a national public establishment of an administrative nature or an association recognised as being of public utility.
