AKMV Inheritance and Debt – How to Protect Yourself
QUESTION
How does inheritance affect my responsibilities regarding the deceased’s debts?
ANSWER:
When you inherit from someone, you don’t just receive their assets (known as assets or activa), but also their debts and obligations (liabilities or passiva) that existed at the time of their death. This follows from the principle of universal succession, which means that as an heir, you step into all the legal rights and obligations of the deceased — including their debts.
The good news is that under Section 470 of the Civil Code, you are liable only up to the value of the inheritance you actually receive. So if, for example, the estate is worth €5,000 and the debts are higher, you are not required to pay the rest from your own money. Therefore, inheritance is not automatically a financial risk — the heir’s liability is limited.
JUDr. Veronika Michalíková, MBA QUESTION
What exactly is an “over-indebted estate” and what can I do in that case?
ANSWER:
An over-indebted estate means that the debts and obligations of the deceased exceed the value of their assets. In such a case, it’s important not to act hastily. Section 471 of the Civil Code allows you as an heir to make an agreement with the creditors to transfer the estate to them to settle the debts.
This agreement must be approved by the court, which usually grants approval unless the agreement violates the law or good morals. This is a practical way to avoid personal liability for the deceased’s debts without having to reject the inheritance completely.
JUDr. Veronika Michalíková, MBA QUESTION
Can I choose to renounce the inheritance if the debts are too high?
ANSWER:
Yes, renouncing the inheritance is a last-resort option if you want to avoid any risk or if it is clear that the deceased’s debts exceed the value of their assets. In such a case, you can renounce the inheritance within the legal deadline, and you will not become an heir at all — which means you will bear no liability for the debts.
However, keep in mind that by renouncing the inheritance, you also lose any claim to property that may be discovered later. So it is a decision that must be carefully considered and made within the legal time limits.
JUDr. Veronika Michalíková, MBA QUESTION
How can I best protect myself as an heir from the deceased’s debts?
ANSWER:
The most important step is to get a clear overview of the deceased’s assets and liabilities as early as possible. During inheritance proceedings, you can request an inventory of the estate and assess whether it represents a gain or a risk.
If it turns out that debts are higher than the assets, you have two main options:
Make an agreement with creditors to transfer the estate to cover the debts (§471 of the Civil Code) – this is a fair solution that also protects you from personal loss;
Completely renounce the inheritance – a good choice if you do not want to be involved or if there’s a high risk of inheriting only debt.
In any case, the key protection is that as an heir, your liability is limited to the value of what you receive from the inheritance — the law protects you from having to pay more than you inherit.
JUDr. Veronika Michalíková, MBA