Contrary to appearances, a fall can also lead to financial ruin. When we are an heir, we must remember to make a good decision – accept or reject a decline depending on what is most beneficial for us.
Each of us would like to receive a high drop, which will include a lot of money
However, life writes various scenarios and it may happen that instead of living or saving our lives, we will inherit debts. In addition, an additional problem is the payment of the estate to those heirs who are appointed by law.
Many people are surprised by the fact that the estate may include not only money , real estate, car and other movables, but also debts. For example, we may inherit a repayment loan from a loved one, an indebted flat purchased for a mortgage. In addition, heirs are also subjected to other costs, such as the costs of the testator’s treatment, costs of funeral of the deceased, and costs related to inheritance proceedings.
When we become an heir, we have essentially three options:
• accepting an inheritance directly
• acceptance of the estate with the benefit of inventory
• rejecting the inheritance
If we know that the inheritance consists of the debts that the deceased left behind, we should not take a straight down. This means that we take over everything that falls within the framework of a decline – both assets and debts. We are also responsible for debts from our own property, which is why creditors will be able to seize our personal property when it turns out that debts exceed assets.
It is worth pointing out that a few years ago this form of inheritance was the default, which is why anyone who did not take the right action, inherited directly, also with debts. Now this is no longer necessary because the default option is inheritance with the benefit of the inventory.
When we can inherit debts, let us choose the acceptance of the inheritance with the benefit of the inventory or reject the decline
Therefore, when there are debts in the inheritance, it is best to decide either to accept the inheritance with the benefit of the inventory or to completely reject the inheritance.
What will be a better solution?
Accepting a fall with the benefit of inventory works generally when we know that there is little debt. Then we are responsible for debts only to the amount of inherited inheritance. Therefore, we do not have to account for anything of our own – in the best case, we get the difference between assets and debts, in the worst case we will not get anything. However, we must remember that additional costs are associated with this option, including determining what exactly is included in the inheritance.
If, on the other hand, we know that in the inheritance were mainly debts, for example, indebted flat, unpaid rent and bills, which were additionally purchased for a mortgage, then it is best to reject the fall and not bear any additional costs associated with it.
In case of any doubts, it is best to consult a legal adviser or an attorney.