If the debts of the estate exceed the income, as an heir, you are in principle privately liable for those debts. That means you have to make up a negative balance from your own resources. If you do not want to run that risk, you can accept the estate beneficiairiously. This is also called "accepting under the privilege of inventory".
The heir who accepts the estate on a preferential basis does not have to pay the negative balance from his own resources after all assets have been realised to satisfy creditors. If there is still a positive balance, this is for the heir. There is a compulsory procedure attached to benefiting from the estate: the statutory liquidation procedure. This includes drawing up an inventory of the estate, listing all assets and debts. You have to write to the creditors and keep the subdistrict court informed about the settlement of the estate.
Beneficiary acceptance is done by making a statement. This declaration is registered in the estate register at the court, so that it is clear to third parties (e.g. creditors) whether or not the estate has been accepted on a beneficial basis. You will have to pay court fees to make a declaration of benefit acceptance. When filing several declarations at the same time, this amount is only due once.
Please note: if you behave as an heir before you have accepted beneficiary, you are deemed to have accepted purely. With pure acceptance, however, you are liable in private. It is therefore important not to do anything until you have accepted beneficiairy.
For more information on benefit acceptance, please contact us. We will be happy to advise you.
