Heirs who discover that the estate of their deceased includes significant debts often choose to renounce it in order to avoid liability for those obligations.
When and how can an inheritance be renounced?
By law, an heir may renounce an inheritance at any time, provided that they have not accepted the inheritance. Persons who have not made a decision may be summoned by creditors or other interested parties to state clearly whether they accept or renounce the inheritance. In the absence of a reply within the period given, the heir is deemed to have lost the right of choice and cannot accept the inheritance.
Acceptance of an inheritance may be effected either by an express declaration of intent or by actions that demonstrate an intention to accept. For example, withdrawing funds from the deceased's bank accounts or disposing of estate property is regarded as acceptance of the inheritance. It is advisable for heirs to avoid such actions if they are not certain of the deceased's obligations.
It is important to note that renunciation of an inheritance cannot be made subject to conditions, a time limit or particular parts of the estate.
Special cases and restrictions on renunciation
The law prohibits the renunciation of an inheritance on behalf of underage heirs, both those under 14 and those aged between 14 and 18. According to Interpretative Decision No. 1/2021 of 23 January 2024 in interpretative case No. 1/2021 of the Supreme Court of Cassation (ВКС), any renunciation of an inheritance made on behalf of underage persons is deemed void and has no legal effect.
How to file an application for renunciation of inheritance
The renunciation of an inheritance is registered by entry in the special register of the district court at the last permanent address of the deceased. The application is filed with the district court and must be signed before a notary to certify its authenticity.
The documents required for the application include:
- An application bearing the heir's notarised signature
- A request from the heir
- A certificate of heirs
- A certified extract from the deceased's death certificate
- A power of attorney, if the application is filed by an authorised person
- A State fee for registering the renunciation, which is 20 BGN, and 5 BGN for issuing the certificate
Once the documents have been filed and the fees paid, the court enters the renunciation in the special register and issues a certificate. Any person may consult this register, since it is public.
Important note: The renunciation of an inheritance takes legal effect only after it has been entered in the special register of the district court. Until it has been entered, the renunciation produces no legal consequences.
Consequences of renouncing an inheritance
By renouncing an inheritance, the person permanently loses their right as an heir and cannot be included in the estate of the deceased. This renunciation is irrevocable and covers all assets and liabilities, even those discovered after the renunciation has been entered.
The renunciation is total and relates to all rights and obligations in the estate – including real property, bank accounts, movable property and debts. A partial renunciation, for example only of the debts or of a specific property, is not permissible.
Furthermore, the renunciation of an inheritance cannot be made in favour of a particular heir. When one heir renounces the inheritance, their share is distributed among all the remaining heirs, and not to a specific person. A common mistake is where heirs renounce in favour of a surviving spouse, but in such a case the inheritance in fact passes to the next order of succession.
The renunciation of an inheritance also does not allow the right of representation by descendants. For example, if an heir renounces, their children will not automatically replace them as heirs.
The creditors of an heir who has renounced an inheritance may, within one year of becoming aware of the renunciation, seek the annulment of the renunciation in their favour if they cannot satisfy their claims by other means. The claim must be brought within a period no longer than three years after the renunciation.
Conclusion
If an heir has doubts about the deceased's obligations, it is important above all to consider whether it is more advantageous to renounce the inheritance or to accept it under an inventory. In case of doubt, it is advisable to consult a legal specialist before taking any action that might be regarded as acceptance of the inheritance and subsequently make renunciation impossible.
Should you need advice or assistance with accepting or renouncing an inheritance, contact us on tel.: 0887550706 or by e-mail: [email protected]
