When a death occurs, emotion often takes precedence over financial reflexes. However, before accepting an inheritance, you must look well beyond the real estate or bank balance left by the deceased. Because an inheritance can also include an outstanding mortgage loan, if it is not covered by death insurance, unpaid taxes, late co-ownership charges or even debts discovered several months later.
This opacity remains frequent: according to a survey by the management company Yomoni, 54% of French people are unaware of their parents’ heritage And 63% rarely talk about succession within the familywhich encourages unpleasant surprises.
Let’s imagine a parent who leaves an apartment estimated at 250,000 eurosbut also a remaining loan of 180,000 eurosseveral thousand euros in property tax and future co-ownership fund calls. On paper, inheritance seems advantageous. In practice, it can become a real financial risk. “The notary questions the taxes, the banks, the co-ownership trustees, but it is on the indication of the heirs,” explains Maître Lacotte, associate notary at Notaires du Louvre. If the family knows little about the deceased’s assets, certain debts may not appear until later.“From the moment you accept, you take on a future liability which could be revealed later. This is why acceptance is always dangerous.” warns the notary.
Three possible options when facing an inheritance
The Civil Code provides three possibilities: accept the inheritance, renounce it or opt for acceptance up to the net assets.
Pure and simple acceptancethe most common, consists of taking over the entire estate of the deceased, with property but also any debts. The waiver allows you to refuse everything: neither active nor passive. But this choice is not always without consequences. “If you renounce your parents’ inheritance, it can pass to the next generation”recalls Maître Lacotte. The children can then become heirs in their turn, sometimes to the point of requiring authorization from the guardianship judge in the case of minors.
Third option, often overlooked: acceptance up to the net assets. As Service-Public.fr points out, it makes it possible to limit the payment of debts to the value of the inherited property. “It’s a waiting position before a possible outright acceptance, but we can no longer give up afterwards”specifies the notary. If this system remains little used, it is because it is more cumbersome: inventory, declaration to the registry, advertising formalities… And in fact, completely vague situations remain rare. “Either we quickly see that the succession is positive, or we know that it is clearly in deficit”observes Maître Lacotte.
The heir has 4 months to choose. After this period, a creditor, a co-heir or the State may ask him to rule, with still 2 months to respond, according to Service-Public.fr. In practice, an inheritance is often settled within the 6 monthsin particular for the tax declaration and the payment of inheritance taxes.
The real trap: accepting without knowing it
The main danger is not always signing at the notary. “What we must especially avoid is tacit acceptance”insists Maître Lacotte. Selling real estate, emptying a bank account or performing certain management acts may be enough to be legally considered an accepting heir. “Accepting does not necessarily mean signing an act saying I accept. This could be putting a property up for sale or unblocking bank accounts,” she emphasizes.
If a significant debt subsequently appears, the heir may find himself personally liable. This is why notaries recommend doing nothing in haste and allowing time for verifications.
Life insurance does not always follow the inheritance
Another important subtlety:‘life insurance obeys different rules. With a beneficiary clause, life insurance is transmitted outside of inheritance: a child can therefore refuse the inheritance while still receiving this capital. “We can refuse the inheritance and accept life insurance”confirms the notary. On the other hand, artificially organizing your insolvency placing all your assets on life insurance to escape creditors can be considered fraud.
In the clearly deficit files, caution often remains the best strategy. “It is better to give up once and for all than to do nothing”concludes Maître Lacotte.
