PACS (France) and Civil Partnership (UK)
Civil partnerships (in the UK) and PACS (in France) are registered unions between two people of the same or opposite sex (since December 2019 in the UK) that last until death, dissolution, or annulment. Both allow couples who do not wish to marry to benefit from a legally recognized relationship. However, while their conditions overlap significantly, there are some differences between them.
CIVIL PARTNERSHIP
A civil partnership can be registered provided that both partners are at least 16 years old and have the consent of a parent or guardian. No authorization is required for adults (i.e., those aged 18 or over). A person wishing to enter into a civil partnership must not already be married or in another civil partnership, and cannot be a close relative of their partner. The couple must have resided in the same registration district in England or Wales for at least seven days.
Before registering a civil partnership, the couple must give notice of their intention at their local register office. This information is displayed on a register for 28 days (a period that can be waived in certain circumstances, such as illness), giving third parties the opportunity to object to the proposed union. Once this period has elapsed, the couple has 12 months to register their union at any register office or approved venue. The union is then legally registered upon the signing of the civil partnership schedule in the presence of a registrar and two witnesses.
Writing a will is common practice in the UK and ensures that assets are passed on to loved ones upon death. When a civil partner dies without having written a will, UK intestacy rules apply in the same way as for marriages, and the surviving partner inherits the deceased's assets. The situation becomes more complex when children are involved.
Gifts made by a person to their civil partner, whether during their lifetime or upon death, are generally exempt from Inheritance Tax (IHT). For international partners, the exemption may not apply if one of the partners is domiciled outside the UK.
PACS (CIVIL SOLIDARITY PACT)
In France, partners entering into a PACS must be of legal age and can be of the same or opposite sex. As with the British civil partnership, a PACS cannot be entered into between close relatives.
While couples wishing to register a PACS in France can be of any nationality, they must reside in France. Those wishing to register a PACS abroad can do so at the French embassy or consulate in their country of residence. However, at least one of the partners must be a French national.
The PACS agreement can be drafted by the couple themselves or by a French notary. It organizes the couple's life together and, for example, the distribution of assets in the event of a separation.
The court, notary, or embassy registering the PACS verifies that the eligibility requirements are met, and the PACS takes effect from the date of its registration. French birth certificates have a margin for updating certain information, and the conclusion of a PACS would be noted there. British birth certificates do not have this feature; therefore, the registration of a PACS by a British national or a foreign national is recorded in a special register kept in Paris.
Since a PACS does not grant the surviving partner any inheritance rights upon the death of the first partner, it is necessary to either draft a will to ensure the transfer of assets upon death or take out a life insurance policy to provide some protection for the surviving partner. Surviving partners who inherit upon their partner's death are exempt from French inheritance tax, just as married couples are in France.
If there are children, whether from both PACS partners or not, only the "disposable portion" of the estate can be transferred to the surviving partner due to French forced heirship rules. In the absence of children, it is possible to bequeath the entire estate to the surviving partner. One way to bypass forced heirship rules is to draft a will that includes a choice-of-law clause for English law, where circumstances permit.
A notable rule that applies to married couples in France, but not to PACS partners, is that the latter do not receive their partner's pension. In France, upon the death of a married person, the surviving spouse may receive a "survivor's pension," which is essentially a portion of the pension the deceased would have received in retirement. The amount received by the surviving spouse is generally between 50% and 60% of the pension, but a surviving PACS partner receives nothing.
WHICH OPTION SHOULD YOU CHOOSE?
Legally and fiscally, a civil partnership is treated in France in the same way as a PACS, and the same applies to a PACS in the UK, now that civil partnerships are open to heterosexual couples. The choice therefore largely depends on personal preference and meeting the eligibility requirements. A will is necessary to ensure that a surviving civil partner inherits from a French estate because, under French intestate succession rules, a PACS partner (and therefore a civil partner) has no rights to a French estate. It is not possible to be in both a civil partnership and a PACS, as both countries require couples entering into a legal union to prove that they are not already married or in a civil partnership, whether in the country of registration or abroad.
There is no system in the UK for registering a foreign union such as a PACS; in France, however, British civil partners must provide proof of their union to the relevant French tax authority when filing a French inheritance tax return, a deed of gift, or other similar documents. One way to do this is to provide an affidavit of law issued by a solicitor, notary public, or British consul, confirming the existence of the legal rule or clarifying its context.
For any assistance regarding a PACS or civil partnership, please do not hesitate to contact us.
