It sometimes happens in life that you end up inheriting something from a deceased relative. This “something” can be both assets (such as real estate, account savings, shares) and obligations (bank credits, unpaid bills and loans).
If you have become an heir, the first thing you need to do, is check the assets and obligations of the deceased person whom you inherit. This check includes the following: debts to central or municipal bodies (unpaid fines or taxes and fees), enforcement cases in the bailiff’s files, mortgages (the check is done in the Registry Agency), you may also check with the bank of the deceased person (provided you know which one). All these checks are possible if you present the public or private bodies with succession certificate.
The most common situation in practice is when you “inherit” a bank loan, whose existence you may have not even heard of before that. In general, the Succession Act provides for two options: waiver of succession or accepting the succession under a list.
Of course, the heir can accept the whole of the succession mass – with all its assets and obligations. This can be done explicitly – with an application to the district judge (in the area/district where the succession arose). However, the more common scenario is when the heir accepts the succession implicitly – by performing actions that unambiguously indicate that the heir intends to accept the succession (for instance, by paying taxes and utility bills of the estate). Once the heir has accepted the succession, whether explicitly or implicitly, he or she is liable for all obligations of the deceased person, irrespective of the total value of the succession mass.
If you do not want to accept the succession, you can make a waiver by submitting an application to the district court. You cannot make a partial waiver (to accept some assets and refuse others). Upon the waiver, the right of succession passes to the next round of heirs – the first round are the children and ground children, the second are the parents and grandparents, the third – siblings and their children and grandchildren, the fourth – other collateral relatives. If all of them make a waiver, the municipality becomes the heir.
Accepting the succession under a lit occurs when the heir limits their liability up to the value of the assets in the succession. This is a formal procedure where the heir should declare all assets and obligation of the succession of which he or she is aware. The list thus compiled is then filed with the district court in a special registry book. This option should take place within 3 months as of the day the heir became aware that there is succession. This time limit can be prolonged by 3 more months by the judge.
When this option is exercised, the creditors of the deceased person may claim payment of obligations only up to the amount of the succession assets. In other words, the heir is liable only up to the amount of what he or she has received as a result of the succession. The heir may be liable with other assets, not belonging to the succession mass, but still up to the amount of the succession assets.
The incapacitated subjects (such as minors, for instance) and the state accept succession only under a list to avoid the risk of having other assets of theirs be charged with obligations.
Another risk that could arise here under the second option is when the heir accepting the succession fails to declare all assets of the deceased person. In such cases, the heir loses the benefit of the second option and becomes liable for all obligations of the deceased, irrespective of their amount.