Inheritance: Can the clearly excessive nature of life insurance premiums be challenged?"

In the context of an estate, disputes may arise among the heirs, particularly with regard to life insurance policies taken out by the decedent. 

This is what happened to Mr. N and his wife, who passed away in 2010 and 2013, respectively, leaving behind their two children, Mr. U and Ms. I, as their heirs.
 

The brother, Mr. U, requested that the proceeds from the life insurance policy taken out by his mother—of which his sister is the sole beneficiary—be returned to the estate. He argued that the premiums paid by his mother were clearly excessive. The case was brought before the Court of Appeals, which ruled in favor of the brother and ordered that the 86,719 euros from the life insurance policy be included in the estate.

A clearly exaggerated character 

However, the sister, Ms. I, has filed an appeal with the Court of Cassation. According to Article L. 132-13 of the Insurance Code, premiums paid by the policyholder of a life insurance policy are recoverable from the estate only if they are manifestly excessive in light of the policyholder’s financial means. This criterion is assessed at the time of payment, taking into account the policyholder’s age, financial and family circumstances, as well as the policy’s utility to the policyholder.
 

The Court of Cassation held that the Court of Appeals had failed to provide a legal basis for its decision, as it did not take into account the mother’s overall financial situation, which, as of January 4, 2000, included real estate assets, savings in various accounts totaling 80,832 euros, and income of 132,385 francs in 1999. Nor did it seek to assess whether the premiums paid in 2002 and 2010 were manifestly excessive, given the policyholder’s age, financial and family circumstances, and the utility of the policy to her at the time of those payments. The Court of Cassation therefore overturned the Court of Appeals’ judgment.