disclaim inheritance
April 1, 2012 | 35,00 EUR | answered by Jan Wilking
My great-aunt (widowed since the 1970s) passed away in early March 2012.
There are no direct relatives, such as children or grandchildren, and the closest relatives are her niece (cousin of my mother), my siblings, and myself.
In 2005, my great-aunt was assigned a guardian (who passed away in 2009) who advocated for her placement in a care facility since 2006 and successfully applied for social assistance. It was only in mid-March 2012, through the second guardian, that it was discovered that there was a funeral insurance policy that was not declared as an asset at the time of the application for social assistance. Therefore, the social welfare office is currently reviewing a partial refund of the social assistance (rightfully so!). The second guardian informed the insurance company of my great-aunt's death and listed me as the presumed heir. The insurance payout would amount to approximately €4800 with the presentation of the insurance policy or a certificate of inheritance. As neither is available, the insurance payout is equivalent to the funeral expenses (€3000).
The estate is valued at approximately €2250, which the social welfare office may demand partially or in full due to the overpayment of social assistance.
Although my great-aunt did not leave behind any debts, there is an unresolved household that she lived in until 2006. Since I do not wish to bear the costs of clearing the household, I intend to renounce the inheritance.
My question: Can I claim the insurance payout (€3000) to cover the funeral expenses without accepting the inheritance, or by engaging in activities such as hiring a funeral director, clearing out the room in the care facility, and engaging in discussions/correspondence with the social welfare office, have I implicitly accepted the inheritance?
Yours sincerely
Dear Seeker of Advice,
I am happy to answer your inquiry taking into consideration the facts you have provided and your involvement as follows:
The funeral benefit from the insurance is not part of the estate, so rejecting the inheritance will not have any impact on it. The insurance policy of your great aunt is a "contract for the benefit of a third party". The funeral benefit will be received by the person named as the beneficiary in the insurance policy at the time of your great aunt's death, without it becoming part of the estate. The beneficiary can then use the funeral benefit as specified in the insurance policy. If there is any amount left over that is not needed, the beneficiary may keep it, provided that the insurance policy your great aunt took out does not have any other provisions for this case (e.g. grave care).
If you are the beneficiary and choose to receive the funeral benefit, this does not constitute acceptance of the inheritance. As mentioned earlier, the funeral benefit is not part of the estate. Furthermore, in general: Even if you take possession of inheritance assets, you can still reject the inheritance, as long as you comply with the form and deadline (6 weeks from becoming aware). Acceptance of the inheritance can also be implied, i.e. solely through corresponding behavior. Anyone who acts like an heir may lose the right to reject the inheritance. This is assumed, for example, if the provisional heir asserts rights from the estate in court or sells an estate asset. Filing for a certificate of inheritance is also considered acceptance of the inheritance.
Actions such as arranging the funeral and paying for the costs are not considered acceptance. The events you described are therefore generally not considered acceptance, so rejecting the inheritance should still be possible. Who is entitled to the funeral benefit depends on who is named as the beneficiary in the insurance policy.
I hope this provides you with some helpful initial guidance. If you have any uncertainties, please use the free follow-up function.
Please note that without knowledge of all circumstances, I cannot provide a definitive advice within the scope of this initial consultation. If you require a final assessment of the situation, I recommend contacting a lawyer and discussing the matter with them after reviewing all documents.
Best regards
