Insured Jewelry: The Minimum Value Nobody Anticipates

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

What the Law Says

Article 764 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 appearing in theft or fire insurance policies in force on the date of death, taken out by the deceased, their spouse, or their ascendants less than ten years before the estate is opened. When multiple policies exist, the average of the valuations serves as the basis.

Concretely: if a ring was insured for €40,000 under a contract from 2019 still in effect at the time of death, it will be very difficult to declare it at €15,000, even if that is its current resale value.

Why the Gap Is Often Large

An insurance value is not a market value. It corresponds to what it would cost to repurchase the item new in a store, 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 retain an old 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, falls outside the scope of the rule. The date matters as much as the amount.
• Check what the policy actually covers. A lump-sum valuation of “precious objects” in a multi-risk home insurance policy can only serve as a basis if it specifically covers 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, aids in dividing assets among heirs, and prepares for a potential sale.
• Report the contract to the notary. Not mentioning it in the hope it goes unnoticed is a bad idea: the tax authorities may find it.

The Common Case of the Item Sold Much Cheaper

Sometimes heirs sell a piece of jewelry for €12,000 when it was insured for €30,000, then discover that the declared value cannot be lowered to the sale price. This situation can be managed: your notary has arguments — a public sale within two years, an overly old contract, non-specific coverage — but it is far better to anticipate than to correct. Hence the importance of reviewing insurance before selling.

Updated July 24, 2026 — tax brackets and allowances are subject to change with each Finance Act.