When someone dies, their heirs do not only receive the assets: they also take on the debts. That is why, before accepting an inheritance, it is worth knowing what is inside it. The Civil Code offers three routes, and choosing well can make the difference between receiving an estate and taking on a problem.
The three options when facing an inheritance
These are the three routes, with their effects. The decision is important because, once taken, it is usually hard to reverse.
Accepting purely and simply
You receive assets and debts without limit. If the debts exceed the value of the assets, you are liable for the difference with your own wealth. It is the highest-risk option when you do not know with certainty what the inheritance consists of.
Accepting under benefit of inventory
You accept the inheritance, but you are only liable for the debts as far as the inherited assets reach. Your personal wealth is safe. It requires drawing up a formal inventory before a notary. It is the prudent option when there are debts or doubts.
Renouncing
You accept nothing: neither assets nor debts. It is a definitive and irrevocable decision. It makes sense when it is clear that the debts clearly exceed the assets and not even the benefit of inventory is worthwhile.
How the benefit of inventory works
It is declared before a notary and requires drawing up a faithful and exact inventory of all the assets and all the debts of the inheritance, within the deadlines set by law. From there, the debts are paid out of the inheritance itself: if something is left over, it goes to the heir; if it does not stretch far enough, the heir puts nothing in from their own pocket. In practice, it is a firewall between the deceased's estate and yours.
Certain acts amount to accepting the inheritance purely and simply without you realising it: selling an asset from the estate, drawing on the money in the accounts or paying debts with your own money. Doing so may cause you to lose the protection of the benefit of inventory. Before touching anything in the inheritance, seek advice.
Deadlines: do not let time pass
The right to invoke the benefit of inventory is subject to deadlines, which shorten if you already hold the assets or if a creditor formally serves notice on you. Acting in time is what preserves the option; letting the months slip by may in fact amount to a pure and simple acceptance with all the risk that carries.
Before deciding it is worth being clear on the differences between accepting and renouncing an inheritance, knowing how long it takes to receive it and avoiding the most costly mistakes in handling it, which very often have to do precisely with accepting without knowing the debts.
At Equus Capital we analyse the real make-up of the inheritance (assets and debts) and advise you on the form of acceptance that protects your wealth. We guide families in Valencia through the whole process. First consultation free and with no obligation.
Frequently asked questions
If I inherit, am I forced to pay the deceased's debts?
If you accept the inheritance purely and simply, yes: you are liable for the debts even with your own wealth. If you accept under benefit of inventory, you are only liable as far as the inherited assets reach, without risking what is yours.
What does accepting an inheritance under benefit of inventory mean?
It means accepting the inheritance while limiting your liability to the value of the assets received. It is declared before a notary and requires a formal inventory of assets and debts. That way, if the debts exceed the assets, you do not pay the difference with your personal wealth.
Can I find out the debts before accepting the inheritance?
You can gather information with certificates and with the inventory itself, but it is not always possible to have total certainty from the outset. That is why, in case of doubt, the benefit of inventory is the prudent route: it protects even if debts appear later.
And what if the debts clearly exceed the assets?
In that case renunciation of the inheritance is usually considered, which frees you from both the assets and the debts. It is a definitive decision, so it is worth analysing it carefully before signing.