Can You Sell an Inheritance?
Accepting an inheritance can come with both benefits and liabilities. To avoid the risk of personal assets being seized due to debts left by the deceased, an heir can choose to accept the inheritance with the benefit of inventory. This option helps the heir avoid the confusion of personal and inherited assets, protecting personal property from being used to settle the deceased’s debts.
What Is Acceptance with Inventory Benefit?
When accepting an inheritance, heirs are initially responsible for the deceased’s debts. Without protection, creditors can seize not only the inherited assets but also personal property, a situation known as “confusion of assets.” Acceptance with inventory benefit ensures that the heir’s liability is limited to the value of the inherited assets. For instance, if the deceased owed €10,000 but only left €5,000 in assets, the heir is liable only up to €5,000.
Legal Alternatives for Managing an Inheritance
If an heir is concerned that the inheritance may carry more debt than benefit, they have two options:
- Renounce the Inheritance: This is advisable if the deceased’s estate is predominantly debt-ridden.
- Accept with Inventory Benefit: This is suitable when the debt situation is unclear but the heir wants to protect their personal assets.
How to Accept with Inventory Benefit
Acceptance with inventory benefit must be formalized before a notary or the court registrar at the deceased’s last residence. It is mandatory in specific cases, such as for minor heirs.
Effects of Acceptance with Inventory Benefit
An heir who chooses this method:
- Can claim any debts owed by the deceased.
- Is only liable for debts up to the value of the inherited assets.
- Protects personal assets from being seized by creditors.
Deadlines for Acceptance with Inventory Benefit
If the heir is in possession of the inherited assets, they must complete the inventory within three months of the succession’s opening. Failure to do so results in losing the inventory benefit and being deemed a pure and simple heir.
An inventory is a detailed record of the inherited assets, rights, and debts prepared by a notary or court registrar.
If the heir is not yet in possession of the assets, they may declare acceptance with inventory benefit within ten years of the succession’s opening. However, the inventory must be completed within three months of this declaration.
Consequences of Non-Compliance
Failing to adhere to deadlines, selling assets without authorization, or other legal breaches results in losing the inventory benefit. Certain categories, such as minors or incapacitated individuals, retain this benefit until their status changes.
VGS Lawyers is an Italian law firm specialised in Family Matters. In case you need assistance feel free to contact info@vgslawyers.com