The law of succession has recently been amended in two respects. A bill to that effect has been passed by the Senate adopted. The bill improves the protection of heirs.
Accepting or rejecting an inheritance
Inheritance law offers heirs the choice between unconditional acceptance, acceptance subject to the right to draw up an inventory of the estate, and renunciation of an inheritance. Acceptance subject to the right to draw up an inventory of the estate is also referred to as “beneficial acceptance”. In the case of unconditional acceptance, the heir is obliged to settle the debts of the estate from their own assets. If the estate is in deficit, the heir must therefore make up the shortfall from their private assets. An heir who accepts the estate subject to an inventory avoids having to settle the estate’s debts from their private assets. In the case of a negative estate or where there is uncertainty regarding the estate, it is advisable to accept the estate on a beneficial basis. If the estate is renounced, the heir loses the right to the assets of the estate and is simultaneously released from the obligation to settle the estate’s debts.
The heir’s conduct may lead to acceptance
Under the law, an heir is deemed to have accepted the estate unconditionally if they act as such. The amended Act clarifies when an heir behaves unequivocally and without reservation as an heir who has accepted the estate unconditionally. This provision is intended to protect creditors against being prejudiced by heirs. The administration of an estate by an heir does not constitute conduct by which the heir is deemed to have accepted the estate unconditionally. Proper administration of an estate may involve an heir selling assets from the estate, for example because they have a limited shelf life. As long as the proceeds of the sale remain available to the testator’s creditors, there is no question of unconditional acceptance. Only conduct that disadvantages the creditors leads to unconditional acceptance of the estate. Acts carried out in the interests of the estate fall within the scope of proper administration and do not result in pure acceptance.
Protecting heirs against unexpected debts
A problem that has been observed in practice is that of an heir who has accepted the inheritance unconditionally and is subsequently confronted with an unexpected debt of the deceased. They must settle this debt. If the value of the estate is insufficient, this must be done from their private assets. Heirs now have three months, following the discovery of an unexpected debt in the estate, to accept the estate under benefit of inventory rather than unconditionally. If the heirs make use of this option, they do not have to make up any shortfall in the estate from their own funds.