You have received an inheritance, which means you have received a portion of someone's estate after they have passed away. However, you may also inherit any debts that the person left behind. 

After finding out you have debts, it's possible to take action to avoid them, or else you have other options to pay. Find out all about this issue in this article from Advogados em Braga. 

What is inheritance?

Inheritances are the set of assets that a deceased person leaves to their legal heirs, and which will be divided among all heirs. 

What are the types of inheritance?

When it comes to inheritances, there isn't just one type, but there is more than one. Thus, in inheritances, there are two types that stand out: 

• Inheritance dormant These inheritances are designated as such when there are no legitimate heirs or their identity is unknown. 
• Intestate succession In vacant inheritance, heirs renounce the inheritance, or it occurs in situations such as when the time for the vacant inheritance expires. 

What is an inheritance with debts?

Is it possible to receive Inherited debt. According to the Article 2068 of the Civil Code, responsible for regulating responsibilities in inheritances, has stipulated that before the distribution of assets to the heirs, the debts of the deceased person must be settled. 

The payment of debts is therefore part of the obligations that an heir acquires as soon as they are designated as such. 

What to do when an heir has debts

There are situations where people who receive inheritances with debts can resolve them. For example, an heir can refuse the inheritance, even after the person's death.

Is there still a possibility, if the person has the means to do so, to bring all Debts pay them off. 

The estate's debts are answered for by the estate itself.

Heirs are responsible for inherited debts. Therefore, individuals designated as heirs in a will, or direct heirs such as children, are responsible for settling those debts. 

Can someone with debts renounce an inheritance?

Yes, it is possible to renounce an inheritance. This means that while a person is still alive, their heirs can renounce the inheritance if they do not wish to inherit their debts. The request must be made by written document and processed at a registry office. 

In situations where the person who owned the assets has already passed away, it is possible to repudiate the inheritance. This way, you can avoid debts before or after the person has died and before being defined as an heir. 

How to avoid inheriting debt?

If an heir does not wish to inherit debts, there are ways to act in order to avoid such a situation:

• Renunciation of inheritance In this case, heirs can refuse inheritances, in situations where the person who owned the assets has already passed away.
• Renunciation of inheritance In renouncing an inheritance, heirs can reject the inheritance of a person who is still alive if they wish to avoid inheriting debts. 

How to not inherit parents' debts

Repudiation is the most viable solution to avoid inheriting parental debts. To proceed with this, a written decision must be presented at a notary's office. In situations where there are Property, this will must be authenticated at the tax office and the land registry office. 

Are heirs obliged to pay the debts of the deceased?

No. Despite inheriting debts alongside assets, heirs can still inherit debts, and when these are included in the inventory, they become debtors.

However, there is a possibility of renounce inheritance. In these cases, the heirs are left without outstanding debts. 

Can someone with debts reject an inheritance?

Yes. The Renunciation of inheritance This applies to assets but also to debts, meaning that by rejecting an inheritance, you are rejecting it as a whole, its assets and debts. 

Qual o custo de renunciar a uma herança?

To renounce an inheritance, you must do so at the notary. For this, it is necessary to have a certificate of will or no will, and a deed of renunciation. This latter document has a value of 25 euros. 

What are the legal options if there are debts in an inheritance?

Regarding debts from inheritances, there are two options: pay the inheritance and its debts, or reject the inheritance and its debts through renunciation or repudiation.

If you choose to pay off the debts, it is stipulated that funeral expenses are paid first, followed by estate administration charges, and finally the debts. 

Is it worth hiring a lawyer to deal with an inherited debt?

Yes. Hiring a solicitor is not mandatory, but there are benefits to doing so, particularly in terms of providing assistance with decision-making and advising on the best course of action for the legal handling of an inheritance.

No Lawyers in Braga We have the best professionals at your disposal, specialising in various areas of law. Thus, you can count on properly prepared professionals to assist you with any legal matter. 

Conclusion 

Is it possible to receive an inheritance with debts, if the person who left that same inheritance has outstanding debts? However, there are ways to combat this situation.

Repudiating or renouncing an inheritance are two options for people to avoid paying debts they have inherited or will inherit. However, by rejecting the debts, they also reject the assets they would have inherited. 

If you intend to pay off the debts, you can combine them into a single sum and settle them, if you have the means to do so.