Pillar 02 · AV
The Swiss army knife of French wealth planning
Assurance-vie (life insurance-based savings, France's flagship investment wrapper) remains, well past age 40, the benchmark tax vehicle in France. Tax-deferred growth, annual allowances after 8 years, transfer outside the estate: the sheer range of its uses makes it the foundation of any wealth strategy.
Tax pivot
8 years
Annual allowance
€4,600 / €9,200
Transfer allowance
€152,500 / beneficiary
Social charges
17.2%
§ 01
A multi-asset wrapper (guaranteed euro funds plus unit-linked funds), a tax rate that steps down with a pivot at 8 years, and a transfer that sits outside the taxable estate within legal limits. No other product combines all three advantages.
§ 02
After 8 years, withdrawals benefit from an annual allowance (€4,600 for a single person, €9,200 for a couple). Beyond that, a 7.5% PFL (flat withholding tax) applies, up to €150,000 of contributions net of withdrawals. This is the threshold that turns an assurance-vie policy into a genuine tax-efficient income machine.
§ 03
The euro fund guarantees the capital, but its yield keeps declining. Unit-linked funds (UC) provide the performance engine but carry market risk. The balance between the two should be actively managed based on your time horizon, tax situation, and risk profile, not left to the contract's default allocation.
§ 04
Contributions made before age 70: a €152,500 allowance per beneficiary, then 20% tax (31.25% above €852,500). After 70: an overall allowance of €30,500, but capital gains are exempt. Properly structured, an assurance-vie policy can pass on €500k to €1M free of transfer duty.
§ 05
Not all contracts are equal. Differences in entry fees (0 to 5%), unit-linked management fees (0.5% to 1.2%), the quality of the euro fund, and the investment universe can add up to several percentage points of return over 20 years.
Frequently asked questions
One main contract is enough for most profiles. Several contracts can make sense to separate objectives (savings versus transfer) or to diversify across insurers above €200k.
Yes, to maximise the transfer benefit, but not to the point of putting money into a poor contract. The quality of the vehicle always comes before the calendar.
Start together
Let's talk it through directly. First conversation offered, with no commitment.
Or receive The Oak Letter every month.
Your messages are only used to reply to you. For advice tailored to your situation, nothing beats a real conversation with Camil.
