Death in France - Recovery of Social Benefits
24th Sept 2024
Beneficiaries of an estate in France can face a bill for social benefits and residential care services received by a deceased person.
Responsibility for social benefits and services in France is divided between several agencies, but most are provided either by the departmental councils or the main retirement fund, called the Caisse nationale d’assurance vieillesse (CNAV).
Under French law, under certain conditions, beneficiaries (including the surviving spouse) of an estate are required to pay back certain benefits that may have been received by the deceased. If there is more than one beneficiary, the amount to be reimbursed by each one is proportional to their share of the estate.
Practice does vary across the country, but most councils do demand that at least some reimbursement is made.
Scope
Although the rule does seem fearsome, the scope of the benefits and services covered by it is limited. There are three main benefits and services concerned:
i. L'allocation de solidarité aux personnes âgées (Aspa) - This benefit, which is a minimum revenue benefit for retired persons is administered by the CNAV, is recoverable on that part the estate greater than €104,000 net, a threshold that should rise each year in line with inflation. There is a maximum amount that can be recovered each year, currently around €8K for a single person and €11K for a couple. Recovery of the benefit is only possible against an inheritance. Around three-quarters of a million individuals are in receipt of Aspa, but many potential recipients do not take it up due to the liability on the inheritance.
ii. L'aide sociale à domicile - Social assistance at home (home help, meal delivery, etc.) is recoverable if the net value of the estate exceeds €46,000 and the amount to be recovered exceeds €760. It is also recoverable against gifts, without allowance, and against life insurance (assurance vie) policies on premiums paid after the age of 70 from the beneficiary if the premium is considered to be disproportionate.
ii. L'aide sociale à l'hébergement (ASH) - This benefit is payable to those in residential care. The assistance is reimbursable from the inheritance, without any allowance, although where the person is disabled, there is no recovery against the spouse, children or carer. It is also recoverable against gifts or increased wealth for those who are not disabled and against life insurance (assurance vie) policies on premiums paid after the age of 70 may also be recovered from the beneficiary if the premium is considered to be disproportionate.
No other social benefit is reimbursable, so beneficiaries of the RSA, or those in receipt of French retirement pension, are not concerned by these rules.
In some circumstances, recovery may take place even where the recipient is still living. Thus, where the recipient comes into a large sum of money (such as an inheritance), the rule of 'retour à meilleure fortune' applies. It is only enforced where there is a significant increase in the wealth of the beneficiary, and the sale of fixed assets (such as a property) by them does not trigger a recovery procedure.
Recovery is also possible against a beneficiary of a gift (donation) made by the person receiving social assistance, up to 2 years after receipt of the benefit. This is possible even though the person may not be a family member.
As the authorities are not always made aware of such actions, it is more often than not the case that recovery occurs on inheritance, when the notaire will be asked to provide relevant details of the succession to them.
Recovery Process
The recovery process will depend on the circumstances of the person concerned, so that some or all of the debt may be payable over a period of time, or simply delayed entirely.
Thus, recovery from the surviving spouse's share may be deferred until his or her death, as may heirs aged at least 65 (60 in the case of unfitness for work, and at any age in the case of serious disability) who were living with and a dependent of the deceased.
Each heir or legatee must repay in proportion to what they receive from the inheritance. Heirs and legatees are not, therefore, obliged to repay from their own income.
If an inheritor or beneficiary considers the recovery action being taken to be unjustified, it is possible to challenge it. In terms of departmental social assistance, the claim must be made within two months of its notification, before the departmental Commission départementale d'aide sociale and, if necessary, before the national commission. In relation to the 'Aspa' benefit it is through the Commission de recours amiable (CRA) of CNAV.