IFI: what about assets held in a trust?

Trusts systematically enter into the fold of the new IFI with regard to real estate assets. But a recent QPC puts this taxation back on hold.
According to Article 885-G ter of the French General Tax Code (Law No. 2014-1655 of December 29, 2014 – Article 61), “The property or rights placed in a trust and the products capitalized therein are included, for their net market value on January 1 of the tax year, as the case may be, in the estate of the settlor or of the beneficiary who is deemed to be a settlor “.
Consequently, subject to the rules provided for in international tax treaties, the territoriality rules of the ISF lead to the taxing of assets placed in a trust whose constituent is fiscally domiciled in France; this also applies to assets located in France for non-resident constituents. investissement défiscalisant
The 2018 finance bill does not change this rule, but it limits the assets taken into account in real estate. comment défiscaliser en immobilier
Warning ! The question of whether property placed in trust actually enters the property of the settlor was the subject of a priority question of constitutionality referred to the Constitutional Council by the Council of State on 25 September 2017 (2017-679); in its order for reference, the Conseil d’État raises the question of the constitutionality of the “systematic” taxation of property placed in such a structure at the ISF, “while these assets or rights, as well as the income that they provide, are likely, according to the modalities of constitution retained, to confer no capacity contributive with the thus designated taxable person “.
The Constitutional Council had already censored, for this reason, the consideration of these trusts in the mechanism of cap of the ISF according to income.
Given the transposition of this mechanism to the IFI, it is necessary to await the decision of the Constitutional Council, both with regard to the trust and the trust, which is its counterpart in French law.