Renunciation of inheritance

In many cases, an inheritance is a financial advantage for heirs – regardless of whether you inherit based on legal succession or are named as the heir in the will, for example. However, since when a person dies, heirs move into exactly the legal position of the testator, an inheritance can also be a financial and legal burden. This is particularly the case if the estate is over-indebted.

For this reason, German inheritance law also stipulates that no potential heir is forced to accept the inheritance that accrues to him. Rather, heirs have the opportunity to eliminate an unwanted heir position by declaring that they are rejecting an inheritance. Reasons for a rejection do not have to be given.

When does it make sense to refuse the inheritance?

It makes sense to refuse an inheritance, especially if it is known that the estate is over-indebted. By accepting the inheritance, the heir would generally also have to be responsible for the testator’s liabilities.

However, the decision for or against rejection should not be taken lightly. There are definitely alternatives: in some cases, applying for estate administration or estate insolvency can also be considered and offer the heirs – or the heirs’ assets – sufficient protection.

“Tactical & steering deflection”

But it is not only when an estate is over-indebted that turning down the inheritance can make financial sense. Even if the testator burdens the heirs in a will, for example with legacies, division orders or an execution of a will, a renunciation of the inheritance can be the best way for heirs.

In some cases it may also be necessary to refuse the inheritance in order to be able to fully realize one’s own claim to a compulsory portion instead.

Under certain conditions, it is possible to use a renunciation to subsequently direct the inheritance to another person.

This can result in major inheritance tax advantages. But things can also go terribly wrong if, as a result of the rejection, the inheritance goes to a different person than the person who rejected the inheritance intended. Such an error can then often no longer be corrected. It is therefore important to have the consequences of turning down the inheritance examined by an expert in advance.

Declaration of renunciation

Anyone who wants to renounce an inheritance must submit the declaration of renunciation of the inheritance in a publicly certified form, for example via a notary’s office or at the probate court. The rejection of the inheritance is only effective if this formal requirement is complied with.

The rejection of the inheritance then only applies to the heir who declares it. In a community of heirs, it can happen that some heirs refuse, others do not, e.g. because the deadline for renunciation was missed or only for some heirs (relatives), e.g. tactical renunciation is more advantageous.

It is also important to know here: If a father or mother declines an inheritance, their children may succeed as heirs. The children would then also have to explain the rash.

Rejection period

Anyone who wants to declare the renunciation of an inheritance must adhere to a legal deadline. Because denying the inheritance is only possible within the statutory deadline.

The rejection period is generally six weeks. It begins with knowledge

• of the death of the person as well
• from the reason for one’s own heir status.

If legal succession applies – i.e. there is no will, etc. – in case of doubt, the renunciation period begins with knowledge of the testator’s death. If there is a will or inheritance contract, the period for renunciation begins at the latest when the probate court announces the opening of the will.

The decision about rejecting the inheritance is often very complex, especially if the estate is not over-indebted, but a “tactical rejection” or a “steering rejection” may be considered.

The six-week deadline is often too short for this decision, but cannot be extended. Therefore, if in doubt, it is important to seek professional legal advice on inheritance law at an early stage in order to be able to make the best possible decision.