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Check if you have to inherit the debt.

What does the inheritance route look like?

Inheritance of inheritance is very complicated in Polish law. It is therefore necessary to study this problem in depth. There is no problem when assets are inherited, thanks to which our financial situation will improve. However, what if we also get in debt. What are the procedures and do we always have to inherit debt? Inheritance rules are changing. We can inherit financial liabilities in two ways. The first way is testamentary inheritance. It is determined on the basis of a document that a loved one left us before his death. Usually, that’s where we find all the information about what we’ve gained and what costs we have to incur, and whether the deceased had any debt. Then we find out who is the executor of the will.

The second method is statutory inheritance. Then the basis for any arrangements are the provisions of Polish law – they determine the order in which the inheritance is acquired. After acquiring an inheritance (testamentary or statutory), we have 6 months to decide whether we accept or reject it. Regardless of the decision we make, it is good to make a statement before the court or notary public.

We always have a choice

We always have a choice

The situation of the heirs improved after October 18, 2015, when the amendment to the Act came into force, thanks to which we are protected by law against paying the deceased’s obligations. To put it simply – we do not inherit all debts, we only pay back what the property of the deceased is worth (the so-called inheritance with the benefit of inventory).

In what order do we inherit?

In what order do we inherit?

When the deceased did not leave a will or the heir indicated in it does not want to accept it, then the provisions on statutory inheritance come into force, in which the order of inheritance is as follows:

  • spouse,
  • descendants (children, grandchildren, great-grandchildren),
  • parents,
  • siblings and
  • descendants (children, grandchildren, great-grandchildren) of siblings
  • grandparents
  • stepchildren.

Adoption of inheritance

Adoption of inheritance

We will conditionally purchase it when it opens. We have made the appropriate statement that we accept it. Now it’s time for the application, which states that we are buying orchard. You should file it with the district court to which the deceased was subject in his last place of residence. The task of the district court is to identify the heirs, as well as to determine what shares each of them has in the estate.

Decline rejection

It is not that we have to accept the inheritance, we can reject it, then it passes to further heirs who have not renounced inheritance. Another person also has 6 months to submit a rejection declaration, thus expanding the circle of those who inherit “assets”. And so it can take a long time until someone provides a letter of renunciation of the inheritance.

Inheritance by minors

Inheritance by minors

It is not our duty to pay someone else’s liabilities. We have the right to avoid related problems. However, it is necessary to do it in such a way as to protect not only ourselves, but also our children from the consequences of this decision. You must first give up within six months of receiving information about the inheritance. Then a new circle of statutory heirs is established. Probably there will be younger representatives of the family. You should then submit a document on their behalf confirming that they also do not accept the inheritance. In this way, the proceedings are unambiguously closed.

Here, the case is more complicated, because parents can reject an inheritance only with the consent of the guardianship court, which gives permission to manage the assets of the minor and reject the inherited debt. Unfortunately, it happens that the court’s decision is issued later than the statutory six months. However, this period may be extended in this case. A parent or guardian who fails to comply with these formalities will lead to the child inheriting with the benefit of inventory. However, we remind you that after changes in the law, it is responsible for the financial obligations of the deceased only up to the amount of property that remained.

What should the statement contain?

What should the statement contain?

The declaration of acceptance or rejection of an inheritance should contain information about the testator:

  • first name and last name,,
  • date and place of death,
  • last home address,
  • what is the inheritance (will or statutory inheritance),
  • list of statutory heirs,
  • death certificate.

In 2009, an amendment to the inheritance act, the circle of heirs was also divided into groups. When there are no people inheriting from one group, the next is taken into account.

  • Group I – the spouse and children of the testator and the descendants of the child who has not survived the opening of the inheritance (they are replaced in his place),
  • Group II – the testator’s spouse, the testator’s parents, his siblings (if any of the parents has not survived the opening of the inheritance) and the siblings’ descendants (in place of the deceased siblings),
  • Group III – if there are no heirs from the first and second group, the testator’s grandparents, descendants’ grandparents, stepchildren (stepchildren’s children)
  • Group IV – the last possible heir is the commune of the testator’s last place of residence or the State Treasury.

No statement and what’s next? Example

No statement and what

Let’s assume that we didn’t take any position in the given time. What legal consequences do we have to account for? It is then considered that we have accepted the inheritance with the benefit of inventory. This means that we have a limitation on liability for debts. We must then regulate them to the value of the assets of the estate (e.g. real estate, car). Inheriting a plot of $ 200,000 and a debt of $ 250,000, we only have to pay the difference to the creditor as much as the value of the plot. After the changes, we do not have to worry about the bailiff’s auction of our personal assets for debts.

Obligations of an heir

Obligations of an heir

The moment we accept the inheritance, we must learn everything that the deceased has left behind. Therefore, we should make every effort to find out what creditors’ claims we have to satisfy. We are obliged to make amends to all who demand money. All this is regulated by separate legal provisions. All doubts are best dispelled with the help of a legal advisor. His services are sometimes very expensive. We can then use the payday loan for free and pay the officer.

Inventory list – who prepares?

Inventory list - who prepares?

When becoming responsible for the debt of a deceased person, we must ensure that we prepare a document in which we show what is part of the estate. Fortunately, more than one person can take up the register. It increases the likelihood that it will be possible to reveal all the ingredients of what a relative left behind. This inventory is also becoming more reliable. Then he must be lodged with the court or notary. Then the relevant judgment is declared final.

Debt in marriage and divorce

Debt in marriage and divorce

What happens when the spouses have taken a loan together and decide to divorce. Then what? According to Polish law, these persons are responsible for their joint debts during and after their marriage. This also applies to property sureties for data only by one of these persons. Joint liability also applies to debts secured by a mortgage on joint property. Such obligations should be paid even after separation. Similarly, for those that arose from the fault of one person, but with the consent of the other. In the case of other arrears, each ex-partner pays them himself, as he is responsible for them as an entity. This is due to the termination of joint property. Importantly, the creditor can obtain his claim from the assets of only one former spouse and his payment. He is also entitled to seize funds obtained from another source of income. All disputes in this regard will certainly be resolved by the appropriate court, which may issue an appropriate judgment in the case.

Property waiver before the debtor dies

Property waiver before the debtor dies

Do you have a debt that is difficult to pay back? Are you struggling with this and worrying about what will happen in the event of your death? You don’t want to worry about your family. You can deprive them of trouble. The heir may waive his rights to succession, but he must do so during the lifetime of the testator and in the presence of a notary public who will draw up the relevant act.

Remember that this option only applies to statutory inheritance. If a will was made, the waiver does not apply.

We waive both indebted assets and the right to a reserved share. Importantly, this waiver also applies to our children and grandchildren. Until the testator is alive, you can withdraw the contract in which you resign from the inheritance. Debt inheritance is quite a complex matter. Fortunately, there are ways to guard against its consequences. However, you need to take care of some important issues that we wrote about in this article. Then somebody’s outstanding loans and loans will not be our problem.