HOW DEBT-ENABLED PROPERTY IS INHERITED

When a person dies and leaves behind an inheritance, it is not always only a legacy. Sometimes, along with valuable property, the deceased leaves debts and loans. And here the rational question arises for the heirs, whether it will always be advisable to accept such a legacy.

Is it possible to accept the inheritance only partially?

Perhaps, for many heirs, this issue is extremely relevant. However, the legislators in regulating the mentioned issue proceeded not only from the interests of the heirs, but also from the understanding of the need to protect the rights of individuals and legal entities to which the testator had debts.

So Art. 1218 of the current Civil Code of Ukraine provides that the inheritance includes not only the rights that the testator had, but also the obligations that belonged to him at the time of acceptance of the inheritance. Therefore, it is impossible to accept the inheritance in part only in the part that we like.

How it works in practice?

Imagine that you inherit a car that is far from new. And with him, the testator had a credit debt exceeding the cost of the car. Yes, you are liable for its obligations solely within the limits of the inherited property. However, the question remains as to whether such a legacy should be accepted if you end up with no benefit anyway.

Of course, there are different situations in life. Sometimes it makes sense to accept the inheritance, despite the debts, when it comes to things dear to the hearts associated with kindred values. But whatever your choice or motivation, you should remember what is included in your rights and obligations as an heir.

The creditor has the right to present his claims for the repayment of the testator's credit obligations exclusively to the heirs who accepted the inheritance within the time limits provided for by the current legislation.

What can be the actions of the heir in relation to the inheritance?

Key scenarios could be:

• acceptance of an inheritance;
• withdrawal of the application for acceptance of the inheritance (when a person sees that the inheritance will create more problems for him than opportunities, changing his mind about accepting it is a completely logical decision);
• renunciation of inheritance.

In such a situation, everyone chooses the option that will be optimal for him. When there are several heirs, then the responsibility of each for the debts of the testator is proportional to the inherited share of the property.

What is automatic inheritance?

This format of inheritance is provided for by Art. 1268 of the Civil Code of Ukraine. If the heir permanently resided with the testator, then at the time of the opening of the inheritance, he is considered to have accepted it, if he has not declared a refusal. The deadline for refusal is set by Art. 1270 of the Civil Code of Ukraine (we are talking about 6 months from the time when the inheritance was opened).

However, during martial law, the period for accepting and refusing the inheritance was increased to 10 months in accordance with the Decree of the Cabinet of Ministers of 06/24/2022 No. 719.

What are the mutual rights and obligations of the heirs and creditors of the testator?

If the heirs know information about the debts of the testator, they must inform the creditors about the opening of the inheritance. As regards creditors, they may present their claims against the heir within six months from the date on which he received the certificate of inheritance. Sometimes there are situations when the creditor did not know about it and could not know. In this case, he has the said right within 6 months from the day when he learned about the acceptance of the inheritance by the heir.

If the creditor fails to submit his claims within the specified period, he loses the right to them.

How to deal with unpaid interest and loan defaults?

Everything is simple here - only those interest and penalties are paid that have “run in” by the time of the testator’s death. It is very important for the heirs to know their rights so that in this matter they do not become victims of unscrupulous credit companies that require too much.

If you need quality advice and legal support on inheritance issues, please contact us. Such assistance will allow you to solve important legal cases more effectively.