We don’t have a mortgage so do we need life assurance?

In most but not all circumstances life assurance is only necessary when you don’t have sufficient capital or income to survive without the deceased being around any more, although “assurance vie” can also be of great benefit when dealing with an inheritance tax bill especially if you are intending on leaving an inheritance to a non blood relative.

The average thirty something couple with a couple of kids are unlikely to have sufficient capital to deal with the prospect of one of the parents dying. For example, if the father earns €50,000 each year and the spouse, whilst trying to look after the children, manages to work a few hours a week. However should the father die, she is now €50,000 a year worse off. Does she need life assurance? I think we can all see what the answer is going to be. And what if the mother dies before the father? Father now has to arrange for daytime child care as well as covering the costs of cleaning, cooking and laundry. So there is also a strong case for covering the spouse as well.

The fact remains that very few people are planning on dying right now so why introduce another bill? Let’s look at some numbers. How much does it cost to cover an average family car for a 35 year old? Before being bombarded with quotes, let’s say it’s €500 per year. What benefit is being covered? Around €15,000, so for €500 p.a. one receives €15,000 cover. How much buildings insurance and contents cover could you get for €500 p.a.? I will guess at €150,000 buildings and €50,000 contents. This seems to be a better deal than the car at least. With both of the examples above, the choice is not really given as you must have car insurance and most people want the security of having buildings and contents insurance. Now let’s take our couple and see how far the €500 p.a. will go to give them some life assurance. Assuming a fixed term of 20 years until their children are off their hands, this could buy both of them cover of over €130,000. In reality, this probably is not enough to cover their needs but just goes to show what benefits apply to different types of policy.

There are a number of different types of life assurance policy funded by regular or single payments. The cost need not form a large part of your budget and should be seen as essential as the premiums you pay on other insurances as your car is unlikely to pay any tax bill for you!

Steve Grover

http://www.financialexpat.com/

Phone: +33 (0)325461631

Mobile: +33 (0)687980941

Fax: +33 (0)351983124

Steven Grover is a consultant for The Spectrum IFA Group

What is Assurance Vie, and what are the advantages ?

Assurance Vie is a type of Life Insurance scheme where you can invest in a huge range of different managed funds, enabling you to invest very tax efficiently in France.

From an inheritance tax point of view a policy is of greater benefit if it is started before becoming tax resident in France, because it will then be completely free from French succession tax. Unless the life assured is over the age of 70 at the time the policy was set up, or at the time any top-ups are made. But even if the Assurance Vie is arranged after you have become French resident, for any named beneficiaries to the policy payments in the event of death there’s a succession tax exemption of €152,500 per beneficiary, after which a flat-rate tax of just 20% normally applies.

Assurance Vie can also help with Wealth tax as you may be eligible to not pay wealth tax (depending on your nationality) on the fund for up to 5 years, if the policy is French tax approved but remains outside of France.

French capital gains and income tax does not apply if the income and gains are made within the policy and no withdrawals are made. Even where an amount is withdrawn only the growth element is taxable, for example if your portfolio of assets held within the policy has grown by 5% only this percentage of the withdrawal would be taxable, the remaining 95% would be tax-free. Any gains are liable to 'social charges' of 11% when they are drawn down, plus taxation on a sliding scale depending on how long the policy has been in force, 35% for a policy less than 4 years old, 15% for policies between 4 & 8 years old and then 7.5% for all policies over 8 years old. Then you have the choice of having the applicable tax deducted 'at source', or being paid gross and declaring the gains on your tax return. This is obviously advantageous if you are paying less than this rate of tax. Also after 8 years, there is an annual tax-free allowance of 4,600 euros (single person) or 9,200 euros (married couple) of GAINS. So the 7.5% tax would not apply if you staggered the withdrawals (e.g. to supplement your pension).

Steve Grover
http://www.financialexpat.com/
Phone: +33 (0)325461631
Mobile: +33 (0)687980941
Fax: +33 (0)351983124

Steven Grover is a consultant for The Spectrum IFA Group

Living in France : Talking with your hands

GESTURES
It is a well-known fact that the French, like the Italians and Spanish, speak with their hands! Sometimes, it looks strange for those coming from an Anglo Saxon culture.

But, in France, shaking somebody’s hand when meeting is very polite. This will often happen between men especially in companies. Of course, you will not shake the hand of a young child. You will kiss him.

EXPRESSIVENESS
Do observe the face and expressions of the French when talking and you might already have the reply to your question!! In everyday life, the French are very expressive and you can read their emotions on their face very easily. However, in an official meeting, one has to control oneself!

You will also notice (if you haven’t already done so!) that when there is a language problem the French will often be very patient to help you out and understand you.
If you make a mistake in a conversation, they will often look at you, smile and give you the right reply: not because they want to “correct” you but because they want to help you.

EXPRESSIONS
Wherever you go, do not forget to say “Bonjour”. As simple as it may sound, it is the simplest way for the French to greet you. The fact of not doing so could be interpreted as a lack of respect. Do remember to put “S’il vous plait” at the end of your sentences as it makes the tone of your sentences “milder”.
- “Je voudrais un café, s’il vous plait.”

From Isabelle : Intransit's French Language Tutor
http://www.in-company-french.com/
06 65 24 64 74

Living in France : Communicating with the French

So you haven’t quite mastered the French language yet? Don’t be afraid to take the plunge and join in the verbal jousting. Despite what one reads in many books, it simply isn’t true that the French will frown if you “massacre” their language.

On the contrary, they will greatly appreciate your efforts to communicate in their mother tongue and you’ll quickly find that using the little French you have will go a long way to building rapport.

Some insights into the French communication style:

(1) The French are verbally expressive. They relish debate and often engage in lively—even heated—discussions over dinner or in business meetings. People from less confrontational cultures should not mistake this love of debate for hostility.

(2) French people don’t spell things out. Instead, they expect the listener to fill in the gaps drawing on shared contextual information. Messages are often implicit rather than explicit.

(3) Simultaneous communication is favoured in France; most of the time it is “okay” to interrupt someone who is speaking to you.

(4) Good verbal skills are prized by the French who will strive to present their point of view with icy Cartesian logic, elegant phrasing and verbal flourishes. This is one reason Gallic business people prefer to negotiate in their native tongue: their verbal pyrotechnics are lost when expressed in another language.

(5) The French strive to be precise in their communications, constantly looking for “le mot juste” (the right word).

(6) Both verbal and written communications are peppered with polite turns of phrases and are fairly formal, except between family and friends.

(7) As a rule, French people are not afraid to criticize a point of view or to say ‘no’. In the workplace, however, especially in larger companies and organizations, employees will be hesitant to confront their boss if they think he or she is in the wrong.

(8) France is what is known as a high-context culture (I’ll post more on this later). Put simply, this means that building long-term relationships is important. Face-to-face meetings are therefore preferred to telephone conversations or written exchanges.

Intercultural Business Coaching with IB hub

Living in France : The Sarkozy effect

At 8pm local time Nicolas Sarkozy was elected the new president of the fifth republic of France after a highly charged campaign from both candidates. While the two candidates offered very different ideas on the future of the country, many of the French hesitated on their choice right up to the last minute. Perhaps the most important result was the enormous turn out for the vote.

The French are definitely ready for a change and with less than 15% abstentions they have made it known. Nicolas Sarkozy gained a comfortable lead from the French electorate, one that expresses a national desire to inject some dynamism into a traditionally institutionalised country.

While Madame Royale promised a review of the welfare state without loosing the social protection that so many French rely on, Mr Sarkozy presents a more radical view of France’s future. One driven by the unchaining of the economy from the traditional institutions that Ségolène Royale wishes to maintain, with a manifesto which he believes will promote a new pride in the national identity and strong economic growth.

The number of young voters was unprecedented in this election. With France’s recent history of riots and demonstrations among this demographic, often fueled by right wing policies, this marks quite a turn around in attitude.

It is maybe the charisma of Mr Sarkozy that has swung the voters to his camp. It is true that his public addresses over the campaign have been, on the face of it, heartfelt and inspiring. He has taken many risks and has stood firm, which while building his credibility, has helped fire up the French in both camps.

Madame Royale offered a new break from the right with no compromise on the traditional values of the French, but her program for change, it seems, wasn’t enough.

So what does this mean for the future of France?

On the national level there is great deal of uncertainty about how far Mr Sarkozy is going to go to revamp France. Many French are concerned about the impact of the new president on their civil liberties and more generally the French still hold their traditions and institutions close to their hearts.

It cannot be denied that such traditions have maintained a sense of national pride and provided a unique culture that is recognised and celebrated by nations across the world (France still remains the most visited country with around 75 million visitors a year).

France, economically speaking though, is slowly chocking on these protectionist institutions and is loosing its image as a great nation. Its voice in the global arena is in danger of becoming weak.

Instead of snubbing global policies it must strive to embrace and influence them. France has consistently offered a strong check and balance on various global issues and has historicly good relations with many emerging economies and world cultures that many of its western friends envy.

Certainly, with Mr Sarkozy at the helm, new interest in France will be generated among the western world. However, while foreign investment is likely to be forthcoming, many European member states, who saw the French economy as a flagstone of Europe, may be hedging their bets on Mr Sarkozy due to his commitment to a new Franco-American alliance.

The French legislative elections later this year will heavily influence Mr Sarkozy’s game plan. A swing to the left will certainly balance his ambitions; another step to the right may provide him with a ‘carte blanche’.

Only time will tell but France is now standing up and is being counted.

Living in Paris : Gay Paris!

Gay Paris !

Parisians are highly open to alternative lifestyles and the homosexual community is very much part of the every-day-life here, it is part of the ‘Richesse de Paris’.

There are many famous clubs like the “Queen”, the “Scorp”, and a lot of bars, mostly located in the 4th arrondissement, the Marais, where you can also find the only gay hotel in Paris, the Hôtel Central Marais.
hotelcentralmarais.monsite.wanadoo.fr

There are also several sports clubs like the first gay football club of Paris, the FC Paris Arc En Ciel www.fcparis-arcenciel.com, the Paris Foot Gay parisfootgay.free.fr, or the only gay rugby club in Paris, Les Gaillards http://www.lesgaillards.org/ all these clubs do of course also welcome heterosexuals who would like to share their passion for these sports.

There is even a real estate agency that specialises in short-term rentals for gay couples and singles and actually hands out the “Gay Guide” that helps non-Parisians find their feet in this scene. http://www.gayhouseparis.com/indexeng.html

Plenty of information on places and events can be found on the following web sites:
http://www.parisgaivillage.com/gb/index.html
http://www.paris-gay.com/indexgb.php
http://www.gaypride.fr/

Cannes Film Festival, Join the Party !

There are a few things that one would never ever forget. Things that forge one's personality as part of a bigger picture. For instance, Frenchmen are very attached to the Revolution and to the ideals that spread from it, just as Americans would be to the War for Independence, etc...
But hopefully, a nation's pride doesn't only rely on bloodshed ! And the Cannes Film Festival (May 16th - May 27th) is a magnificent and peaceful alternative indeed !

Since its first happening in 1946, the Cannes Film Festival has established itself among the most popular and esteemed cultural manifestations both in France and on the international scale.
Over the years, festivals of that kind have gained an even stronger appeal. And it's a common dream to be in the middle of it, part of the living whirlwind, of the excitement of being were everyone wants to be. What better occasion than the Cannes Film Festival to reach the unreachable...

Dreamers, wake up. Because reality really isn't that bad : the dream is close at hand.
Horn's Club has secured places for the 8th happening of the Bal de le Riviera on May 19th, a prestigious party on the Croisette. Take a chance to live an unique experience partying with celebrities and jet set members. Perfect blend of elegance and refinement, the Bal de le Riviera will have the pleasure to host among others, Jean-Pierre Rive, the famous sculptor who will display his works the time of the party.
Let the champagne flow, such occasions suffer no excuses, excesses will be the rule on May 19th.
A once-in-a-life experience reachable to Horn's Club members only !
Visit Horn's Club website for more info.

Related link : www.festival-cannes.fr

Living in Paris : MESSAGE Mothers Bring and Buy sale

Bargains Galore at MESSAGE's Spring Bring & Buy Sale

Find new and gently-used baby and children's clothes, toys, books, games, equipment, maternity wear and more -- at bargain prices. Many items were purchased abroad (e.g., UK and US) and may be difficult to find in France.

Saturday, May 12, 2007
10 AM - 2 PM

Courtyard Marriott Hotel,
58, Blvd. Victor Hugo
Neuilly-sur-Seine

Metro: Les Sablons/Anatole France

Entrance fee: 2 Euros per family for members;
4 Euros per family for non-members
First 3 hours of hotel parking are free!

Organized by MESSAGE Mother Support Group
www.messageparis.org

Living in France : 'On' or 'nous'

On va au cinéma ?In spoken French, we often use “On” instead of “Nous”. For instance, we are going to say “On va au cinéma” instead of “Nous allons au cinéma”. It makes things more colloquial.

The young will mainly use “On” when the older generation will use “Vous”. In a professional context, you can use either “Nous” or “On” depending on whom you are talking to: “On” with your colleagues, if you wish to show closeness and “Nous” if you wish to sound more formal and polite.

From Isabelle : Intransit's French Language Tutor
www.french-in-paris.com
06 65 24 64 74

Paris : Serviced Offices and office space

Intransit has just added a new service for its clients. We can now assist with sourcing temporary offices and serviced offices in Paris.

You can now see the availability and access servced offices all over the Paris region through our partnerships with the specialists in this field.

With many prestigious addresses as well as cost effective locations to assist your corporate move to Paris or just for a temporary base while you are setting things up.

http://www.intransit-international.com/serviced_offices_paris.html