In order to protect the rights of creditors in the event of possible bad faith on the part of the heir, the law provides for possibilities to challenge a renunciation of inheritance. These possibilities, however, are limited by preclusive time limits. A renunciation of inheritance is a unilateral act by which the heir renounces, finally and in full, the inheritance of his decedent. This means that the heir will not acquire any assets, but likewise will not be liable for the liabilities of the estate.
Challenge by judicial procedure by creditors
A renunciation of inheritance may be challenged by judicial procedure both by creditors of the decedent and by creditors of the heir. In cases where the creditors of the decedent wish to challenge the renunciation, they must prove that it is invalid. If the heir has performed acts of acceptance of the inheritance before renouncing it, the creditors may insist that the renunciation be declared null and void.
More common in practice is the case in which the heir, by renouncing the inheritance, harms the interests of his creditors. If the heir does not have sufficient property, but the inheritance contains assets, the renunciation deprives the creditors of the possibility of satisfying their claims. In this case, the creditors may request the partial annulment of the renunciation of inheritance in their favour under Article 56 of the Inheritance Act (ЗН).
Who has the right to challenge the renunciation?
The right to bring a claim under Article 56 of the ЗН belongs only to creditors of the heir who cannot satisfy their claims out of his property. The creditors of the decedent do not have the right to challenge the renunciation by this procedure, but may bring a declaratory action for the nullity of the renunciation.
A creditor who brings the claim under Article 56 of the ЗН and wins the case will annul the renunciation only in his own favour. For the remaining creditors, the renunciation will remain in force, which is why they must bring separate claims.
Evidence of creditor rights
The creditor must prove his capacity by means of a writ of execution against the heir. It is not necessary for enforcement actions to have been undertaken on this writ.
Condition for a challenge by the creditor
The law provides that the claim will be granted only if the creditor cannot satisfy himself out of the heir's assets. However, proving this fact is not the creditor's obligation. If the heir objects that he possesses sufficient property, the burden of proof lies with him.
Time limits for challenging the renunciation
There are two time limits for challenging the renunciation, each with a different starting point. Both are preclusive and are monitored by the court of its own motion:
- One-year time limit – begins to run from the moment of becoming aware of the renunciation.
- Three-year time limit – begins from the date on which the renunciation was made and is a final term.
The three-year time limit is final, and after its expiry the claim becomes inadmissible. The one-year time limit is relative and begins to run only after the creditors become aware of the renunciation, provided that this occurs within the three-year period.
Result of a successful claim
If the court grants the claim, as regards the creditor who brought it, the renunciation will be deemed not to have been made and the heir will be treated as having inherited the estate. This enables the creditor to satisfy himself out of the inheritance assets up to the amount of his claims.
Should you need advice or assistance in accepting or renouncing an inheritance, as well as in challenging them, contact us on telephone 0887550706 or at e-mail: [email protected]
