Only six weeks – there is usually no more time to turn down an inheritance after it becomes known. But why should you do that at all? Experts explain what to look out for when inheriting.
Whoever inherits does not always get full savings accounts, blocks of shares or real estate. Unlucky people inherit debts or dilapidated buildings. But there is the possibility of turning down the inheritance. Our experts explain when to do this, how to do it and what to look out for.
“There are a number of good reasons for rejecting an inheritance,” says Britta Beate Schön, a legal expert at the advice portal Finanztip.de. “In addition to debts and liabilities of all kinds, this also includes any costs that may arise as a result of the inheritance. For example, because renovations are necessary for an old property”. Even if the inheritance is associated with a lot of work, for example because of the care of a distant property, it can make sense to refuse the inheritance.
Or if your own financial situation is unfavorable: “The heir’s overindebtedness can also be a reason to reject the inheritance,” says Max Ehrl, managing director of the German Association of Notaries, “as a result, the creditors would not have access to the inheritance.”
Before you turn down an inheritance, you must of course know what you are inheriting. And that you have inherited. Because it is by no means a matter of course that the heirs will be informed. This only happens if the deceased left a will and it is available to the probate court. In such a case, the probate court will contact the heir or heirs. “If there is no will, the heirs have to take care of their inheritance themselves,” says Britta Beate Schön.
This can be difficult because it is necessary to get an overview of the financial situation of the deceased. To do this, documents have to be trawled through – correspondence, bank statements, land register extracts, loan agreements, everything that can be found. Sometimes the banks refuse to provide information when the heirs ask for information without a certificate of inheritance. But that is not legal. “The Federal Court of Justice has decided that it is sufficient if the heir proves his position as heir by means of a notarial will or an inheritance contract in connection with the judicial opening protocol,” explains legal expert Schön.
Once you have an overview of the legacy, you have to decide: all or nothing? “You can’t knock out partial objects,” says Max Ehrl. If you don’t want the decrepit property, you won’t get the Picasso on the wall either.
It is very important: Whoever inherits, inherits automatically. “If he or she does not want to accept the inheritance, the refusal must be explained, otherwise the inheritance is accepted,” said Ehrl. The waiver then applies retrospectively, you are disinherited, so to speak.
Anyone wishing to refuse the inheritance usually has six weeks to do so. A longer period only applies if the testator or heir lives abroad. The heir then has six months to do so. It sounds short in some cases, but: “The period does not begin with the death of the testator, but with knowledge of the inheritance,” says Britta Beate Schön. So either when the probate court gets in touch or when you know after the death of the testator that you are next in the line of succession.
Anyone wishing to renounce the inheritance must submit a declaration of renunciation. He can do this either at a notary or a probate court. Certain formal requirements must be observed. “A letter or an e-mail is not enough,” says Max Ehrl from the German Association of Notaries. “The declaration of waiver must either be recorded personally at the probate court for the record, or publicly certified by a notary and sent to the probate court.”
The waiver must not be subject to conditions, otherwise it is invalid and the inheritance is deemed to have been accepted. The competent probate courts are either that of the heir or that of the testator.
Incidentally, once an inheritance has been rejected, it is difficult to undo it. Just like one once accepted. Nevertheless there are possibilities. “There are legal grounds for contesting, for example, fraudulent deception, mistake or threat,” says Max Ehrl. In some cases, the inheritance can still be challenged up to 30 years after the inheritance. But then it’s over.
If the inheritance is refused, it is the turn of the heir of the inheritance. And then the heir of the heir of the heir. The estate always falls to the next in line of succession. As a rule, parents can refuse the inheritance for their minor children. In some cases, the family court must also agree to the waiver.
Even if the last heir in the line of succession does not want the legacy, the state gets everything. In contrast to all other heirs before him, he does not have to pay the debts.
(This article was first published on Monday, December 12, 2022.)
