Insured Jewelry: The Value Floor No One Anticipates

This is the most overlooked rule in jewelry taxation — and the one that causes the most unpleasant surprises at the time of declaration.

What the Law Says

Article 764, Section II of the French General Tax Code stipulates that for jewelry, gemstones, works of art, or collectibles, the taxable value cannot be lower than the valuation stated in theft or fire insurance contracts in force on the day of death, taken out by the deceased, their spouse, or their ancestors less than ten years before the estate is opened. When several policies exist, the average of the valuations serves as the basis.

In practical terms: if a ring was insured for €40,000 under a 2019 contract still active at the time of death, it will be very difficult to declare it at €15,000, even if that is its actual resale value today.

Why the Gap Is Often Significant

An insured value is not a market value. It corresponds to what it would cost to repurchase the piece new from a retailer, including margins and VAT. It is therefore naturally higher — often double, sometimes more — than the price at which the jewelry is actually traded second-hand.

Added to this is a freezing effect: many contracts carry an outdated valuation, never revised, made at a time when the market or prices were different.

What Heirs Can Do

• Check the existence and date of contracts. A contract concluded more than ten years ago, or canceled before death, does not fall within the scope of the rule. The date matters as much as the amount.
• Check what the policy actually covers. A global flat-rate valuation of “precious objects” in a multi-risk home insurance contract can only serve as a basis if it specifically targets jewelry, gemstones, or works of art — not an indistinct lump sum.
• Get an appraisal anyway. A documented professional estimate remains useful: it informs the notary, assists with the division among heirs, and prepares for a possible sale.
• Disclose the contract to the notary. Failing to mention it hoping it will go unnoticed is a bad idea: the tax authorities may find it.

The Common Case of a Piece Sold for Much Less

It sometimes happens that heirs sell a piece of jewelry for €12,000 when it was insured for €30,000, only to discover that the declared value cannot drop to the level of the price obtained. This situation can be managed; your notary has arguments — a public sale within two years, a contract too old, non-specific coverage — but it is far better anticipated than remedied. Hence the importance of reviewing insurance before selling.

Updated July 24, 2026 — rates and allowances are subject to change with each finance act.