Can adult children be held responsible for the debts of their parents in France?
If the mother or father has died the situation can be complex
Parents and adult children are considered to have a reciprocal obligation to support each other if they are in serious financial need
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Reader Question: Can adult children be held responsible if their parents get into debt? Is it different if they are still alive or if they have died?
Children cannot be responsible for any debt of their parents while the parents are living, unless there is a written agreement for this to be the case (for example, with the child acting as garantor for a rental).
This should not be confused with the fact that parents and adult children are considered to have a reciprocal obligation to support each other if they are in serious financial need (and within what is reasonable, bearing in mind the financial situation of each).
If the parent has died, the situation can be more complex where the estate share-out is organised by a notaire in France (ie. because the parent lived in France).
Children who ‘fully accept’ the inheritance of the deceased parent as their heir will also accept a share in the debts of the estate (note that in France heirs - héritiers - are those inheriting a share of the estate, not recipients of one-off specific bequests, known as légataires).
Alternatively, they can opt to inherit ‘up to the net assets’ (à concurrence de l'actif net).
The latter sees any debts owed being paid off as far as is possible, with the remaining net assets (if any) going to the heirs after inheritance tax. However, if there are debts exceeding the estate’s value the heir is in this case not responsible.
The latter option is more complex to carry out than a simple acceptance, but protects the inheritor from having to use their own funds in the case of an inherited debt.
It can be a good idea, especially if inheriting amounts derived from professional activities, where hidden debts (to suppliers, clients, etc) may exist without being known to the heirs at the time of death.
This type of inheritance must be declared via the local court or in front of a notaire – this will make it more costly. An inventory must also be drawn up.
In cases where inheritance is accepted with no questions, and debts are later discovered, inheritors are still responsible.
They can apply to a court to request to be partially or fully discharged from the debt if they can prove it would cause them serious financial harm and they had no good reason to know about it, but must do this within five months of the debt becoming known to them.
Finally, if the inheritance is renounced in its entirety, the debt is not passed on.
