Inheriting debts

Inheritance and debts – what you need to know (Germany):

The risk: in Germany you inherit EVERYTHING – assets AND debts. If the deceased leaves €50,000 of debt and only €10,000 of assets, you inherit −€40,000. You're liable with your OWN assets!

What you can do:

1. Disclaim the inheritance:

• Deadline: 6 weeks from learning of the inheritance
• Declare it in person at the probate court
• Costs approx. €30
• Applies to EVERYTHING – you can't disclaim only the debts

2. Apply for estate insolvency:

• You accept the inheritance but apply for estate insolvency
• Advantage: you're only liable with the estate, not your own assets
• Useful if it's unclear whether the debts outweigh the assets

3. Three-month defence:

• For 3 months after the death you may refuse payment to all estate creditors
• Gives you time to review the estate

Golden rule: BEFORE you accept an inheritance, examine the estate thoroughly. If in doubt: consult a lawyer or the probate court. The 6-week deadline is short!