Understanding the terminology is crucial in succession planning. Here are definitions for some key terms:

Usufruct: The right to use and enjoy the benefits of an asset without owning it.

Bare Ownership: Ownership of an asset without the right to use it, typically paired with usufruct.

Donation: The act of giving assets to someone during your lifetime, often used to reduce future inheritance taxes.

Abatement: A reduction in the value of an estate for tax purposes, often applied to gifts and inheritances.

Reserved Portion: The portion of an estate that must be left to certain heirs by law, protecting their inheritance rights.

Life Insurance Beneficiary Clause: A provision in a life insurance policy that specifies who will receive the benefits upon the policyholder’s death.

PACS: A civil union in France that provides legal recognition and benefits similar to marriage.

Anticipation: Planning and preparing for the distribution of your estate to ensure your wishes are respected and taxes are minimized.

Heirs: Individuals entitled to receive a portion of an estate, either by law or through a will.

Testamentary Trust: A trust established by a will to manage assets for beneficiaries after the testator’s death.

Probate: The legal process of validating a will and administering an estate.

Executor: The person appointed to carry out the instructions of a will and manage the estate.

Estate Planning: The process of organizing your assets and affairs to ensure they are distributed according to your wishes upon death.

Joint Tenancy: A form of co-ownership where two or more individuals hold equal shares of an asset, with rights of survivorship.

Intestate: Dying without a valid will, resulting in the distribution of the estate according to statutory laws.