What does it mean to accept an inheritance with the benefit of inventory?

Question

José Manuel Alburquerque · Accepted Answer

It means accepting the inheritance so that the deceased's debts are met only from the inherited assets, never from your own. In Catalonia it is enough to draw up an inventory of the assets and debts within six months of learning that you are an heir, before a notary or with the tax return for the “impuesto de sucesiones”, the Spanish inheritance tax. It works even if you have already accepted. It is advisable whenever there are, or may be, debts. How it is done Within six months of learning, or being able to learn, that you are an heir. If it is not done in time, anyone who accepts must also meet the debts from their own assets. Before a notary, with a list of the assets and debts. The assets do not need to be valued, but the debts must be stated with their amounts. A list of assets and debts filed with the inheritance tax return within that period is also valid. Applying for an inheritance tax extension does not lengthen this period. The inventory must be complete and accurate. If the heir knowingly leaves out assets or debts, or falsifies it, they lose the protection. Heirs who are minors always have this protection, even if they do not make an inventory. This applies if the estate is governed by Catalan law. Under the Spanish Civil Code (“Código Civil”) it must be done before a notary and the time limits are different. If the heir is in possession of the assets, there are only thirty days. What effects it has If the debts exceed the assets, the heir does not pay the difference out of their own money. If the deceased owed the heir money, the heir can recover it from the estate. Before handing over the legacies, the heir must pay the deceased's known creditors as they come forward. If the heir acts in bad faith in making payments or selling assets, they lose the protection. When it is advisable When the deceased had loans, guarantees, debts to the tax authorities or a business, or when it is not clear what they owed. In the case described in the article, the two heirs accepted in this way because that same day they were to be appointed liquidators of two of the deceased's companies. The benefit of inventory protected their own assets against any debt of the deceased that came to light in those liquidations or afterwards. An inventory before a notary usually has a moderate cost. Including it in the tax return costs nothing extra. If it is clear that the debts exceed the assets, it is usually better to renounce the inheritance.