What to do if you Inherit Debt?

If a deceased leaves debts, you as his heir also have to assume his obligations – at least if you do not react in time. Visit http://www.jj-technique.com/banking-puts-obstacles-to-the-financing-of-80-of-smes-according-to-the-cameras/ for a summary

Current loans, installments and unpaid bills are inherited

Current loans, installments and unpaid bills are inherited

Unfortunately, it is not always precious jewelry, well-filled bank accounts or valuable real estate that is inherited. Often the deceased also had liabilities, for example in the form of current loans or installment purchases, which have not yet been fully paid off. Even if the testator still had open accounts, these are after his death matter of the heirs. Even if you inherit a property, it does not necessarily mean wealth. If the property is in a dilapidated condition or mortgaged, it may cost the heirs more than to benefit. However, as an heir, you do not necessarily have to assume the deceased’s debts, you can also reject the inheritance.

“All or nothing” as a basic principle in inheritances

"All or nothing" as a basic principle in inheritances

However, if you make use of the possibility of building bastard, you completely renounce the inheritance. Here is: completely or not at all. Who does not want to take over the liabilities of the deceased, must also do without the family jewelery. You will not be entitled to the so-called compulsory portion if you refuse the inheritance. Even if you have other things in mind after the death of a loved one, you should get an overview of your financial situation as quickly as possible. In fact, a deadline of six weeks applies to an attack. If there is a will, the time will run from the time it opens. If there are no documents governing the inheritance, the period begins when the heir has learned of the death of the testator.

Formally correct foundational strike required

Formally correct foundational strike required

If you choose not to inherit, you must formally declare the corporal strike correctly. Either you go personally to the probate court, which is usually attached to the district court, and submit your concerns there or you have the founding strike certified by a notary. A simple letter to the competent probate court is not enough. An exception applies in Baden-Wuerttemberg: There the state notary office is responsible for building beating. If you turn down one inheritance, it’s up to the next one in the succession, so maybe your child. Therefore, it may be necessary for whole families to go to the probate court if no one wants or can accept the deceased’s liabilities.

By the way, there is no reason for moral concern when you turn down an inheritance. Legislators have introduced the possibility of inheritance to protect heirs from over-indebtedness. A Costbank investigation has shown that every 14th German citizen has ever succumbed to an inheritance, in the majority of cases, the deceased’s debts were the reason.

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