What happens to the inheritance if the deceased was in debt?
April 20, 2022 | 40,00 EUR | answered by Uwe Herrmann
Dear Attorney,
I am reaching out to you with a question regarding inheritance law. My father recently passed away and unfortunately left behind high debts. I am now wondering what will happen with the inheritance, as I am potentially one of his heirs as his daughter.
My father had debts with various creditors, including the bank and suppliers. I am concerned that I may be held liable for his debts or that the inheritance will be completely used to pay off the debts, leaving me with nothing.
Could you please explain to me what the legal situation is in such a case? Are there ways to avoid or reduce the debts of the deceased? What happens if the inheritance is not enough to cover the debts?
I would greatly appreciate it if you could provide me with information and possible solutions so that I can better understand what to expect. Thank you in advance.
Sincerely,
Franceska Kleine
Dear Mrs. Kleine,
first and foremost, I would like to offer you my sincere condolences on the loss of your father. It is understandable that you are in a difficult situation and are concerned about what will happen to your father's inheritance and debts.
In a case like this, where the deceased left behind high debts, the legal situation is as follows: as a potential heir, you automatically enter into the succession and therefore also inherit your father's debts. This means that you are generally liable for the debts that your father had at the time of his death.
However, there are also certain legal regulations that provide protection for you as an heir. For example, there is the possibility to renounce the inheritance. If you renounce the inheritance, you are no longer automatically responsible for your father's debts. It is important to note that the deadline for renouncing the inheritance is usually only six weeks.
If the inheritance is not enough to cover your father's debts, creditors will usually have to waive a portion of their money. This is where the principle of estate insolvency comes into play. In this case, the inheritance is liquidated and creditors receive a portion of the money obtained from the sale of the estate.
It is important that you seek advice from an experienced inheritance lawyer in such a situation to help you with the settlement of the estate and the settlement of your father's debts. They will explore options with you to reduce or circumvent the debts and provide legal advice on the best course of action.
I hope this information is helpful to you and I am available for any further questions.
Sincerely,
Uwe Herrmann
