June 2011

BRIDGE OVER TROUBLED WATER

 

 

"Bridge Over Troubled Water" is the title song of the duo Simon & Garfunkel's final studio album, released January 26, 1970.

I admit that I have put several layers in this one. The title came as an obvious choice with my memories of the past and a look at my current calendar, which reveals a busy schedule.

 

 

LES PONTS DU MOIS DE MAI - THE BRIDGES OF THE MONTH OF MAY
Americans who come to France to work are warned about the special phenomenon that happens in France during the month of May. It is referred as les ponts du mois de mai, which can be translated as "the bridges of the month of May," although that means absolutely nothing in English or in probably any other language except French spoken in France.

May 1st (Labor Day) and May 8th (VE Day, the end of World War II) are national holidays. So is the Feast of the Ascension, which is celebrated 40 days after Easter and therefore is almost always a Thursday in May. Many French employees take advantage of these paid holidays and ask to have one or two days of paid vacation in conjunction with them to take a long weekend. For example, if the holiday is a Thursday, you take Friday as a vacation day and end up with a four-day break while using just one day of your paid vacation. Some years it is possible to have a total of twelve days off work but only use up three days of vacation. Of course, the immediate impact of this is that French business at the national level crawls for about a month because not enough people are working.

The pont or "bridge" is the vacation day(s) you use to make a bridge between the bank holiday and the weekend. "Faire le pont" (doing or making the bridge) is an expression commonly used during this time of the year.

This year, however, it was business as usual in May: the 1st and 8th were Sundays and Ascension was not until June 2nd.

 

 

MITTERRAND'S ELECTION ON MAY 10TH 1981
On top of all the major news worldwide and in France this month, it was also the 30th anniversary of the election of François Mitterrand as French president on May 10th 1981. Everyone old enough to remember that day will recall how this election was celebrated. I admit that the celebration was very moving. On a more personal note, I traveled in the USA during July, August and September 1981, crossing 33 states from Montpelier, Vermont, to Birmingham, Alabama, and from Los Angeles, California, to Spokane, Washington, and most of what is in between. I had to keep explaining that I was not a political refugee and that France was still just its normal self. Many Americans were under the impression that Soviet tanks were stationed in Paris! I had a very weird feeling of having to bridge a huge gap of cultural misunderstanding, and most often ended up with a sense of complete failure - I realized I was still being completely misunderstood on this topic.

 

 

MY FIANCÉ VISA
Last, but certainly not least, in early 1986 just after having been honorably discharged from the French Army, I received my fiancé visa (official title is K-1 visa or fiancé(e) K-1 nonimmigrant visa - SEE travel.state.gov/visa/immigrants/types/types_2994.html#1) to immigrate to the USA, and I had 90 days from the day I arrived to get married or leave! Paula and I married on May 10th 1986. It was pure coincidence that the date was the fifth anniversary of Mitterrand's election. We were just interested in beating the deadline!

"Bridge over Trouble Water" can mean a lot more than just helping each other get through difficult times.

I really like Simon & Garfunkel, though I prefer the songs describing the country, its working class or poor people, or interstate travel with the accompanying aches and pains. Memories of Grand Central Station in New York and Greyhound stations throughout the country come to my mind when I listen to these classics.

 

 

LATEST NEWS FROM NEW YORK TO PARIS
There has been so much trouble and misunderstanding between France and the USA regarding the French I.M.F. director. What if the bridge was about hearing and respecting the other point of view, the decision made by the other side? I am not interested in who is innocent or guilty; that is the work of the court, the judge and the lawyers. I am more interested in the divided viewpoints that France and the USA have adopted on the issue. What I find fascinating is that I can see that both sides are saying very accurate things, even though they totally contradict each other. Maybe this is what being the bridge is about and where tolerance regarding the opposing viewpoint is important. Both countries boast about their respective freedom of speech, and rightfully so. It just saddens me that in this case, the "speech" coming from the other side - i.e., the other country - seems to have been dismissed without having had a fair chance.

 

 

NEVER CHANGE SOMETHING AT THE LAST MINUTE
This is the rule I decided on many years ago, and I try to stick to it every time. When the deadline arrives and it is time to start production, that is not the time for editorial changes. But with the May issue, I gave in to an urge to change something in the last Q/A, and I ended up creating more problems than the one I was trying to fix.

As a result, I received this comment letting me know in a very nice way that my error did not go unnoticed!

"I have been a subscriber to your newsletter for a number of years now. This one was most informative. I did, however, want to make you aware of a discrepancy in your response that you may not be conscious of. Under Buying a Rented Apartment, the correspondent indicates that the tenant is a woman. In your answer, you refer to her as a woman initially, then as a man, and that is a bit confusing when your reader is trying to understand the exact nature of the tenant's options.
Of course, I can't imagine writing a newsletter in a language that is not native to me. Thank you for making the effort. Yours has been quite an education and I look forward to reading every issue."

 

 

OFFICE CLOSED FOR SUMMER VACATION
My office will be closed from the evening of Friday July 22nd until 9am on Monday August 29th. As always, I will be reachable by email for emergencies and important matters. The service I offer of receiving mail for clients will continue while the office is closed. I will let individual clients know how to receive or retrieve their mail during this period.

As usual, there will be no August issue. I wish everybody a nice summer and enjoyable holidays.

 

Best regards,

 

Jean TaquetJean

 

Q & A

HOW TO FINANCE ESTATE TAXES IN FRANCE

QUESTION
I live in the USA and often come to France. I am very good friends with an older Frenchman and recently he told me that he put me in his will so that I would inherit his apartment in Paris. He also purchased a life insurance policy and put me as the beneficiary to cover the estate taxes, which he said are really high. I know his parents are still alive and he was never married or had any children.

He showed me the policy for 260,000 euros and I understood that the apartment is worth about 500,000 euros. This seems to be so much money to me.

What should happen in France at the time of his death and does it matter that I do not live there?

ANSWER
Before answering your questions, allow me to address what I consider to be the biggest issue you are faced with; it is one, which you did not raise.

Even though you consider this to be a lot of money, I am afraid that this policy will not be enough to pay the estate taxes owed. Indeed, it is already insufficient and I believe that the value of real estate will only go up, making it even less adequate.

French estate law is quite complex and the related taxes make it even more difficult to understand. Blood ties are the cornerstone of the regulations: what matters is the relationship on the family tree, one branch and one generation at a time. Ten years ago, a law of December 3rd 2001 added spouses to the ranking of preferred heirs, in third place after children and parents, but the spouse also gets a portion of the estate before anyone else. In effect it is done by setting aside a dedicated portion for the surviving spouse before the estate is declared opened.

  • 1 – les descendants = (the children)
  • 2 – les ascendants privilégiés = (the parents)
  • 3 – le conjoint survivant = (the surviving spouse)
  • 4 – les collatéraux privilégiés = (the brothers and sisters)
  • 5 – les ascendants ordinaires = (the grandparents and above)
  • 6 – les collatéraux ordinaires = (the cousins, uncles and aunts and everyone coming from the same great-grandparents)

The next complex issue is that the children have a preferred status where they cannot be disinherited. This means that if a will says, "I leave everything to my spouse," it actually means everything that is left after the children receive their shares. This can be a very small portion, which is why the 2001 law gave the spouse preferential treatment. For example, in the case of a person with three children (including adopted children), the will governs only a quarter of the estate. This is true regardless of who is the beneficiary of the remaining quarter.

In your case, I assume that the will lists the beneficiaries and the assets they are to receive, and that this has been done in such a way that there is no conflict with the potential rights of his parents should they survive him.

Now, as for estate taxes, the surviving spouse has long had preferential treatment: currently there is zero tax on the portion of the estate received by the spouse, although this could change at any time.

At the other end of the scale is the beneficiary who is not related by blood to the testator: in such cases the French estate tax is 60% from the first penny. Thus, on an apartment worth 500,000 euros, the tax would be 300,000 euros. But the face value of your policy is 260,000 euros, which means you are already 40,000 euros short. And as the apartment increases in value, so will the tax owed. In other words, you will be 40,000 euros short at the very minimum. For some people this discrepancy would not be an issue, but for others, their life savings, retirement included, would not make up the difference and they would have to sell the apartment to pay the tax. This seems to be exactly what your French friend was seeking to avoid by purchasing the insurance policy. When a person bequeaths an asset to someone, it is often more for sentimental and personal reasons than for financial reasons. A house or apartment is a home, with memories imbedded in every wall. It is not just an asset with a market value.

Something tells me that this man should be informed of your findings, and if he agrees with you, he should increase the face value of the policy if possible (his age might make it difficult or expensive) to allow you to keep the apartment, since this is what he wants for you.

As for your questions, the fact that you do not live in France does not in itself change anything. As a non-resident foreigner you can own real estate and be the beneficiary of a life insurance policy. Inheriting under a French will does not require you to be a French resident, so I see nothing to prevent you from owning this property except the insufficient funding.

The French notaire - who is mainly a public official, with a wide range of responsibilities, is in charge of the estate from its opening to the allocation of all assets and debts to the beneficiaries of the will and the heirs as defined by law. There is not much that you need to do. Even the executor in France does not have much to do. Finally, any change in real-estate ownership goes through a notaire's firm, so there will be one appointed even if you do nothing.

 

BEST CARTE DE SEJOUR FOR A PERFORMING ARTIST

QUESTION
I have been studying jazz for seven years in France and I am now getting a little bit of recognition as a saxophone player. Up to the present, I have been able to renew the student carte de séjour thanks to the various courses I have taken. Many of my classes are related to music, of course, but I have also been studying French. That said, last year I barely managed to get my student carte de séjour renewed. The préfecture kept saying I was not studying enough even though I had the same number of hours, 25 hours total per week, and they complained that I had taken the same courses two years in a row, which was not true. It is hard to document the progress made when there is no official diploma issued or grades to pass.

Now I want to change my status and earn my living as a performer. Sometimes I play in cafés and I gave two real concerts this past year at small concert halls in the suburbs of Paris. Is it possible for me to get a different carte de séjour?

ANSWER
To give a quick answer, yes, it is possible, but acquiring this kind of carte de séjour will require a lot of work on your part. Also, bear in mind that there are other ways of earning money as a musician, which bring in a much steadier income, although they are not necessarily better paid.

The first thing you need to understand is what happened last year with the préfecture and what could happen if you submit another student carte de séjour request this year. What the préfecture is really looking for is a student enrolled in a four-year program or so, with exams at the end of each scholastic year, in which the student passes and proceeds to the next grade and gets his student carte de séjour renewed in the process.

In such cases, the préfecture can measure the progress in the student's studies because it is clearly visible. So the first hurdle you encountered last year (and maybe in previous years, without your being aware of it) is the question of what kind of progression one can have studying music; it is not like going from freshman to sophomore, junior and senior. There is also the question of what kind of measurable progress one can make in seven years - what more can one study? As you yourself say, "It is hard to document the progress made when there is no official diploma issued or grades to pass."

So the conclusion is clear: you must get out of this immigration status before your request is denied. The choices, however, are complex.

The worst news for you is that a performing musician must be an employee, and an employee carte de séjour is very hard to get. An office called Main d'Oeuvre Etrangère (Foreign Labor) grants this right, but short of a full-time position with at least a six-month contract, you have nearly no chance of getting a regular employee carte de séjour.

An alternative choice is the artistic carte de séjour, which also requires something of a steady position. Again, there must be an employee contract approved by Main d'Oeuvre Etrangère, and you are approved for the duration of the contract. This means you can only be sure of getting a full one-year carte de séjour if you have a contract for a minimum of six months. Otherwise you get a récépissé for the duration of a contract and you end up never receiving the real carte de séjour - and you will feel like you live at the préfecture while hoping that when one job stops another will start. Stated differently, is it a good idea to rely on multiple miracles occurring?

Now, the carte de séjour compétences et talents would be an ideal choice, since I am sure that you do have talent. It lasts for three years, which would be wonderful for you. The problem is that you might not have the recognition to prove with documents how good you are, knowing that professional and moral references are not doing you much good. I would not rule it out right away, but do not underestimate the requirements expected to comply with the regulation.

The safest thing to do is to apply as a teacher, not as a performer. First, a teacher can be self-employed, and there are close to no barriers to getting a carte de séjour if you go that route. Second, I am sure you have enough awards to prove that you can teach music and saxophone. Third, you could also teach your native language, if there is a market for it. If you were asked to play, instead of being paid as a performing musician, you would have to agree not to be paid, to comply with your immigration status. If you are really good, the concert hall or producer could request an ad-hoc employee authorization just for the concert. Or as a self-employed person you might find something else to invoice. I need to stress that performing is being an employee, and would mean breaking the rule against working as an employee! This aspect of things should not be overlooked.

There are drawbacks related to choosing this status. Many music conservatories will not use the services of self-employed teachers. In addition, the very generous unemployment program tailored for performing artists will be out of your reach. So, for your own good, you would want to keep the self-employed status for only a short period. It becomes a trap once you are in it for several years, as the teaching almost always takes precedence over the performing. Think of it as a Plan B that can help you safeguard your immigration status and enable you to launch your career. The rest is up to you and your talent.

 

 

 

RESIDENCY STATUS IF ONE SPENDS LESS THAN SIX MONTHS A YEAR IN FRANCE

QUESTION
I am a retired 68-year-old American who owns properties in France. I also pay into a top-level private health fund scheme for both medical and hospital care. I would like to spend, legally, five to six months in France each year. I have no plans or intention to do any work in France. Is there any way to simply get an extended-stay visa each year or a document for an extended period without having to hold French immigration status, which I do not want?

ANSWER
The shortest answer to your question is no, it is not possible to spend five to six months a year in France legally without having some kind of French immigration status. So we need to work around the question and see what the alternatives are, and then you decide which one is the lesser of two evils.

To comply with French immigration law, you must have immigration status if you are going to spend that much time in France. Indeed, the carte de séjour mention visiteur exists for people with your profile. You have the financial means, you have the health insurance and you own your lodging, so I believe that you have all the basic things needed to obtain the visa and later the carte de séjour.

Admittedly, this new status would take a fair amount of your time and energy. For one thing, it would require you to organize your visits to France according to your appointments at the préfecture, since you must appear before a civil servant to renew this status. So I understand your concerns regarding such a rigid status. For many people it makes staying in France unpleasant; it takes away a lot of the fun of being here if one has to chase documents and return to the préfecture several times because there is always a paper missing!

At least you appear not to want to become a French fiscal resident, since you would not be staying more than six months in France per year. The other three situations that would make you a French fiscal resident are having a spouse or a minor child (or children) who is a French fiscal resident, having a French employer and operating a business in France, even one as small as tutoring a few people. Remember, France taxes complete households and not just individuals; this is why it is important for both you and all the members of your immediate family to comply with these guidelines.

Now, I have to admit that, unlike the USA, France does not always strictly enforce the 90-day-stay visa waiver program that exists in the USA, France and most other Western countries. So, while it is clearly illegal, you should consider how little risk there is of any consequences, given the fact that the French police do not currently seem to be enforcing the law for the nationals of a few countries, including Americans, Canadians, Australians, Japanese and New Zealanders, which are the ones I know about.

What are the potential drawbacks, aside from the simple fact of not having a legal right to stay in France? Well, you can run into hassles when you book plane tickets with American airlines (and some European ones, too), as many airline companies want to see a carte de séjour once you start booking round-trip tickets starting in France. There may also be several other small problems that can aggravate your situation. Examples include problems with renting a car in the countryside with a company other than the major chains, having to comply with the requirements for a non-resident bank account, getting certain museum passes and getting paid for small jobs.

All I can do here is to emphasize that both alternatives involve a lot of unpleasantness and there is no good solution. Some people can handle being under the radar and the pressure that goes with it. Some others, more law-abiding by nature, end up accepting that occasional préfecture visits are part of the trade-off for spending that much time in France. Such people often quickly get really good at putting together the file to renew the carte de séjour and within a couple of years are able to master the procedure to such an extent that the chore is acceptable, if not pleasurable.




DISCLAIMER
Please forward this message to all those who would be interested in its contents. The information contained in this newsletter is intended only as general information. I strongly urge readers to seek professional guidance concerning the legal and tax matters mentioned. This newsletter is intended as a general guide and is not to be taken as professional advice.