“insurmountable inheritance costs”

In September, the LVMH group, owned by billionaire Bernard Arnault, bought 1.3 hectares of vines from an estate in Aloxe-Corton (Côte-d'Or), for 15 million euros. The Poisot family ceded their land, unable to pay inheritance fees.

Two months ago, a page was turned Aloxe-Corton, one of the most beautiful appellations of the Côte de Beaune. The Poisot family announced the sale of several parcels of great wines to the LVMH group, owner of billionaire Bernard Arnault, the 5th largest fortune in the world.

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It all begins when Rémi Poisot learns of the death of his aunt. He then inherited a vast wine estate with his brothers and sisters. “She had no direct heir, so we became the heirs. Our notary uses the state service for land valuation. And there the ax falls.”

Faced with insurmountable costs amounting to several million euros, the Poisot family must make a decision: sell part of the heritage. “It wasn't easy to take. The vines that I farm have been in the family for over 100 years, since the beginning of the 20th century. And just for the sake of inheritance, we have to part with them. Obviously, it's difficult because I couldn't pass on to my children what I received from my parents and my aunt.”

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And it is therefore the LVMH group which wins the bet. He bought 1.3 hectares of vineyard plots for 15 million euros. “They agreed not to interfere in the exploitation, winemaking and marketing. Among the various suitors, he is the only one who agreed to be sole owner, and for that I thank him.”

This is the LVMH group's second acquisition on the grand cru route, after the purchase of the Lambrays estate, in Morey-Saint-Denis. Something to worry about Thiébault Huber, president of the confederation of Burgundy appellations and winegrowers (CAVB). “It's another family estate that's leaving and it's an economic model for Burgundy wines that's slipping away. Burgundy makes people dream and it attracts investors who come to set prices that are completely disconnected from reality. It's overrated, it's more of a work tool, it's a work of art.”he laments.

When the owner of the vineyards dies, the heirs are taxed on the value of the assets on the date of the inheritance. Tax determined based on the relationship between the deceased person and their heirs. This varies between 20% and 40% between a father and a son, but can go up to 60% for the brothers and sisters of the deceased, or his nephews and nieces.

I am angry and worried.

Thiébault Huber

President of the Confederation of Burgundy Appellations and Winegrowers (CAVB)

“The tax law must evolve if we want to preserve this economic model which makes Burgundy so rich”insists Thiébaut Huber. “We absolutely must have this tax transmission tool. There is this tool for factories, workshops that we do not have in agriculture. We must expand the Dutreil pact which allows 75% to be exempt and taxes to be paid only on the remaining 25%.” A device which could perhaps have allowed the Poisot family to meet the transmission rights, and thus remain owners of the estate.