Can heirs inherit debt in France?
In cases when the defunct did not have an assurance déces on a loan, it will pass on to the heirs but there is some flexibility
It is crucial to seek legal advice when dealing with inheritance, especially if you are concerned about debts
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When someone passes away, heirs may inherit both assets and liabilities, such as a car along with a loan or a house along with a mortgage, however there is some flexibility.
In cases when the defunct did not have an assurance déces on a loan, it will pass on to the heirs - if they accept it.
Certain fees are also payable to the notaire for handling the estate after death. These fees are typically related to inheritance matters, and you can estimate the costs on this Notaires de France site.
Note that in France, there is a distinction between héritiers (heirs) and légataires (legatees).
Héritiers refer to individuals inheriting a share of the estate, while légataires refer to those receiving a specific bequest.
Heirs’ responsibility for debts
Heirs are responsible for paying the debts of the estate and the amount is proportional to their share in the estate.
Légataires universels (those inheriting the remainder of the estate after any heir’s portions) also bear responsibility for the debts in relation to their share.
Légataires particuliers (legatees receiving specific gifts) however, have no responsibility for estate debts except where a gift comes on condition of related debts being paid.
How to deal with inherited debts
Heirs must make a decision about accepting or refusing their inheritance within four months of the death. There are a few options to consider:
1. Accepting the inheritance
Simple Acceptance: If you accept the inheritance without limitation, you will be liable for the deceased's debts. This includes all debts, except those that expired upon the person's death.
Acceptance for net value: This option limits your liability to the value of the inherited property, protecting you from being liable for debts exceeding the estate's worth. To do this, you must file a declaration at the tribunal de grande instance court or through the notaire.
2. Refusing the inheritance
If you decide not to accept the inheritance, it is treated as though you never inherited it.
This refusal is made at the greffe (court office) of the tribunal de grande instance in the area where the deceased passed away.
If an heir renounces the inheritance, it passes to their children or grandchildren. If they also renounce, the estate is sold off to pay creditors, and the family can retain personal keepsakes.
3. Renouncing in advance
It is also possible to renounce an inheritance in advance before the relative’s death. This can be done by signing a legal document in front of two notaires.
This option may be useful if the heir wishes to avoid inheriting any debts from the outset.
Professional advice is key
It is crucial to seek legal advice when dealing with inheritance, especially if you are concerned about debts.
A notaire or legal expert can guide you through the various options, helping you choose the best course of action based on your circumstances.
By understanding your rights and responsibilities as an heir, you can make informed decisions that will protect you and your financial interests.
