After a person’s death, heirs are often faced very quickly with the question of whether to accept or renounce the inheritance. This decision should be made carefully, because an inheritance generally involves not only assets but also potential debts and other obligations of the decedent that pass to the heir.
An inheritance can be accepted in various ways. First, an explicit declaration of acceptance is possible. Such acceptance may, for example, consist of the heir applying for a certificate of inheritance, thereby clearly expressing the intention to claim the status of heir.
In addition, an inheritance can also be accepted through conclusive conduct, that is, implicitly. The decisive factor here is whether the heir’s conduct outwardly indicates that they wish to retain the inheritance permanently. This may be the case, for example, when the decedent’s bills are paid from the estate, contracts are terminated, or other actions are taken that are typically the sole prerogative of an heir.
An important point to note is that an explicit declaration is not always required to accept an inheritance. If an inheritance is not effectively renounced within the statutory renunciation period, it is generally deemed to have been accepted. Anyone who learns of a death should therefore not simply let the matter rest. Inaction, too, can have significant legal consequences.
Upon accepting the inheritance, the heir generally assumes the legal position of the deceased testator. The rights and assets belonging to the estate are thereby transferred to the heir. At the same time, however, the heir generally also assumes the testator’s liabilities.
It is precisely this point that makes an early review of the estate particularly important. In addition to bank balances, real estate, securities, or other assets, there may be, for example, loan obligations, unpaid bills, tax debts, or other liabilities. Under certain circumstances, the heir’s liability may also extend to their own assets.
Before deciding whether to accept or renounce the inheritance, it is therefore important to determine as precisely as possible which assets and liabilities are part of the estate. Particularly in cases of complex financial circumstances or signs of excessive debt, it may be advisable to seek legal counsel in a timely manner and examine the available options under inheritance law.
If the inheritance is to be renounced, an informal declaration to family members, other heirs, or creditors is not sufficient. The renunciation must be declared to the competent probate court. As a general rule, the probate court with jurisdiction is the one in whose district the decedent had his or her last habitual residence.
In addition, special formal requirements apply to the renunciation. The declaration must either be submitted for the probate court’s record or made in a form certified by a notary public. The time limit for renunciation is of particular importance here. It is not merely decisive that the declaration be prepared or initiated in a timely manner; it must be received by the competent probate court within the applicable time limit.
In many cases, the deadline for renouncing an inheritance is six weeks. In the case of intestate succession, the start of the deadline generally depends on when the heir becomes aware of the opening of the estate and of the circumstances establishing their status as an heir. In the case of succession based on a will or an inheritance contract, the opening of the will and the corresponding announcement by the probate court may be particularly significant for determining the start of the deadline.
Precisely because of this short deadline, it is advisable to act promptly upon learning of a death. The financial circumstances of the estate should be clarified as much as possible without inadvertently taking actions that could already be construed as acceptance of the inheritance.
Once an inheritance has been accepted or effectively renounced, this decision generally cannot be simply revoked. However, the law provides for the possibility of contesting the acceptance in certain exceptional cases. For this, a legally recognized ground for contestation must exist.
Under certain conditions, such a ground for contestation may exist, for example, if an heir was mistaken about material circumstances of the estate. In practice, the question often arises as to whether, at the time of acceptance or renunciation, there were misconceptions regarding the composition, value, or potential over-indebtedness of the estate. A mistake regarding legally relevant circumstances may also need to be examined on a case-by-case basis.
Challenging an acceptance or renunciation is also subject to statutory requirements and time limits. It must be declared to the probate court. The time limit for challenging an acceptance or renunciation is generally six weeks and typically begins at the time the person entitled to challenge becomes aware of the relevant grounds for challenge.
Therefore, there is no one-size-fits-all answer to whether an inheritance should be accepted or renounced. The decisive factors include, in particular, the financial situation of the estate, the heir’s personal status, actions already taken, and the applicable statutory deadlines. If there are doubts regarding the financial circumstances or whether acceptance has already taken place, the legal situation should be reviewed as early as possible.
If you have inherited an estate, we would be happy to assist you in assessing whether acceptance or renunciation is an option. We also advise you on matters related to estate administration as well as on the legal options available if acceptance or renunciation has already been declared and needs to be reviewed retroactively.
The statements represent initial information that was current for the law applicable in Germany at the time of initial publication. The legal situation may have changed since then. Furthermore, the information provided cannot replace individual advice on a specific matter. Please contact us for this purpose.