Inheritance tax is paid by the recipient of the inheritance and can apply if the recipient lives in France, or if the deceased lived in France or had French assets. If the 5-year rule applies, it means that only your French assets would be subject to French inheritance taxes, while cash, property, shares or other assets held in the US would be taxed there. According to French tax authorities, anyone who is a French resident and has been one for six out of the last 10 years is liable to French tax on both "movable and immovable property located in France and outside of France that they inherit."