A man may die, but his debts cannot

In addition to the rights and property objects, the debts of the deceased are also transferred to the successors as part of the inheritance. These could be the following debts:

• non-payment of loan installments;
• utility debts;
• failure to deposit funds to pay taxes and fees;
• non-repayment of loans received from third parties against receipt;
• unpaid funds to the employer in the event of damage - if there was financial liability of the subordinate.

Not only the amount of the principal debt is inherited, but also fines, interest or penalties on the debt.

However, they cannot continue to accrue after the death of the testator, but must be repaid in the amount that was formed on the date of the person’s death.

Special types of debt

The inheritance of certain types of debts has a significant difference from the general procedure for transferring debt to successors.

Credit

If there is an obligation to repay the loan, you need to take into account its targeted nature. If the testator took out a mortgage loan on the property, then the property is transferred to the heirs along with the unpaid loan amount.

The successor may refuse the inheritance or accept the property along with such encumbrance.

In some cases, you will have to resolve additional issues with the banking institution that can sell the property with a mortgage. Inheriting a vehicle taken on credit also involves transferring the unpaid portion of the debt to the successors of the deceased.

Alimony

Some debts of a person are inextricably linked with his personality and cannot be passed on to other persons, including by inheritance.

For example, the responsibility to pay alimony for the deceased or to compensate for damage to the health of persons caused by the testator does not pass to the successors.

However, there is a nuance here: the amount of alimony not paid on time, which is recognized as a debt by a court decision, is subject to inheritance. Such debts, as well as the amount of accumulated fines and penalties, are recognized as ordinary obligations not related to the personality of the deceased.

Scope of responsibility of heirs for the debts of the testator

Inheritance of debts occurs in accordance with the rules governing the transfer of property by inheritance. Debt obligations are tied precisely to the property in relation to which they arose.

If this part of the inheritance passes to several heirs in equal shares, the debts are also divided equally. When an object of inheritance with an encumbrance passes to one heir, and other parts of the property to other applicants, then the debts are assigned to the first.

In order to resolve issues with the scope of responsibility of the heirs, the law prescribes the payment of debts to the applicant who takes actual ownership of the inherited property. The new owner pays off old debts.

Obligation of heirs to pay the debts of the testator

All obligations regarding the repayment of the testator’s debts assigned to the successor are prescribed in Article 1175 of the Civil Code of the Russian Federation:

• If the successors accepted the inheritance, it means that they are jointly and severally liable for the debts of the testator. Joint liability of heirs for debts means that claims for payment of the debt can be presented either to one successor or to several at once. Successors pay the debt in different shares if the value of the inherited property is different;
• If the successor accepts the inheritance in accordance with hereditary transmission, then he becomes responsible directly for this property, but not for the property of the successor, after which he received the right to inherit;

You can read more about the transmission in our other article.

• Creditors may require successors to repay the debt before the statute of limitations expires. If the successor has not yet accepted the inheritance, creditors can make claims against the executor of the will.

Are debts on loans of a deceased person inherited?

Recipients of the property of the deceased are jointly and severally liable for most of the credit obligations of the deceased citizen. The debts of the testator are divided into:

1. Inherited. These include loans, rent debts, fines, penalties for late loans, debts to third parties and other obligations that are not tied to the identity of the borrower and can be repaid without him.
2. Not inherited. These include debts associated with the person of the deceased. These are payments for alimony, fines to the traffic police.

Important! The debts of the testator are transferred to the heirs in an amount not exceeding the size of the share of the property received by him. The value of a property is assessed at the time of the owner's death.

Which ones are inherited?

Heirs are legal successors of obligations that are not related to the personality of the testator. These include:

1. Credit obligations. Car loans, mortgages, consumer loans, fines and penalties for violation of the contract.
2. Payments. Utility payments, obligations for taxes, fees, penalties for late taxes.
3. Child support debt. Funds that a citizen has not paid during his life pass to his legal successors.

Unsecured loan

Unsecured loans make up the majority of loans issued by banking organizations. These are relatively small sums of money that the borrower takes without guarantors and without pledging personal property - real estate or vehicles. When issuing such loans, banks, in order to protect themselves as much as possible from non-payment, put forward the condition of parallel registration of life insurance.

If there is insurance, after the death of the borrower, all responsibilities for repaying the loan pass to the insurance company.

The heirs in this situation do not bear any responsibility to the creditor for the debts of the deceased.

To avoid financial claims from the bank, they should contact the insurance company, providing a document confirming the death of the insured person, and a bank statement indicating the amount of the unpaid debt.

But if a person, when receiving a loan, refused to enter into an insurance agreement, then the loan by inheritance after the death of such a debtor is completely transferred to his heirs.

Car loan, mortgage

A home mortgage and the purchase of a car with a car loan belong to the group of secured loans, since the acquired property is de jure pledged to the creditor bank. If the collateral loan is insured, then financial responsibility falls again on the insurer.

In the absence of insurance, debts are inherited by the following persons:

• To co-borrowers and guarantors who acted as guarantors of debt repayment.
• To the heirs who received the collateral property in personal possession.

If the listed persons refuse to pay their debts, the credit institution has the right to go to court with a claim to foreclose on the collateral property - an apartment or a car. That is, turn them into your property through a court order.

You can avoid this by accepting the inheritance and re-issuing the loan in your name. After this, the bank obtains permission to independently sell the collateral with the condition of subsequent repayment of the remaining debt.

Alimony

Alimony refers to the personal debts of each person. This means that only he is responsible for them, and it is impossible to demand alimony payments from the heirs .

But the caveat is that this rule applies only to the future tense.

If the deceased had alimony debts already at the time of death, then the obligation to repay them completely passes to the heirs.

Public utilities

The heir is responsible for debts and utilities accumulated by the former owner of the apartment. When taking possession of the living space, the new owners will have to pay off the utility debt from their own funds.

Domestic legislation does not exempt even minor heirs from debt obligations. Along with the property of the deceased, they also receive his debts. They are accepted from heirs under 14 years of age by their official representatives (parents, guardians or adoptive parents). If the heir has reached the age of fourteen, then he himself has the right to accept debts.

Which ones are not inherited

The heirs do not answer:

1. For obligations of a deceased relative that are directly related to his personality, for example, alimony.
2. If the testator, through his actions, caused harm to the health or property of third parties.
3. Fines for violations. If a deceased citizen committed an administrative offense for which he was given a fine, then the obligation to repay it does not pass to the heirs.
4. Fines and penalties accrued after the death of the borrower. If the credit institution presents such amounts, the heir can challenge them in court.

Additional restrictions on the transfer of debt of a deceased citizen may be provided for by Family or Civil legislation.

Credit debts by inheritance

It must be remembered that according to the Constitution of the Russian Federation, all citizens have rights and bear responsibilities. This rule also applies to inheritance relations. Credit debts are inherited, as are contractual obligations.

Credit debts by inheritance may have some nuances when repaying a debt obligation . These features look like this:

• The bank has the right, if there are several heirs, to present its claims to any heir or to all of them at once.
• If the bank makes claims on one heir, and his property is not enough to satisfy the claims, then the bank makes claims on other heirs.
• The heir to whom the bank has turned to satisfy his claims may, by way of recourse, make claims against other heirs.
• If the inherited property is not enough to pay off the debt, then it is still considered fulfilled and actually ceases to have effect.

The heirs accept the requirements under the agreement in the form that were presented to the testator himself. Thus, the bank does not have the right to change the terms of the agreement unilaterally.

A loan agreement may have security measures: collateral, surety, life insurance. Let's consider how these interim measures can be included in a loan agreement.

For your information, if the security measure is a pledge , for example, an apartment is under a mortgage, then all these encumbrances are passed on by inheritance. That is, this apartment will be pledged to the bank and the heirs will not be able to dispose of it in full.

Such an interim measure as a guarantee has several features:

• It is necessary to look at what conditions are specified in the loan agreement; if the guarantor undertakes only for one person – the borrower, then with the death of the person the guarantor’s obligations cease.
• If the terms of the agreement indicate that the guarantor ensures the repayment of the debt by any recipients, then his obligation will be terminated only after the debt is paid. If the funds provided by the heirs are not enough, then the collection will be directed to the guarantor.

There may be cases when the loan agreement includes a provision for life insurance. In this case, the heirs need to carefully read these conditions and find out whether their situation is suitable for the insured event.

How to check for loan debts

Often relatives accept an inheritance without even knowing about the deceased’s loans, so calls from a bank or collection service later become an unpleasant surprise. In 2014, the Law of the Russian Federation No. 218 “On Credit Histories” dated December 30, 2004. changes have been made that protect successors from inheriting along with the assets of liabilities unknown to them.

So, according to paragraph 6 of Article 6 of Law No. 218, within the framework of notarial proceedings, notaries are vested with the right to check the composition of the inheritance mass. Those. When registering an inheritance, a notary can make a corresponding request to the National Bureau of Credit History (NBKI) and obtain information about all outstanding bank loans of the deceased. Credit history information is provided within 3 business days from receipt of the request.

What to do if debts are discovered after entering into an inheritance?

Lawyers at the Federal Chamber of Notaries explain that in this case, the creditor has the right to present his claims to the heirs - all at once or any of them. He can also divide the debt among the heirs and require each of them to pay their share. And if he does not receive money from someone, he has the right to redirect the debt to someone else.

It is worth remembering that each of the heirs is liable for the debts of the deceased only to the extent of the value of the property received by him. For example, the bank requires you to repay the remaining debt on your loved one’s loan - 500 thousand rubles. And your share of the inheritance is estimated at 300 thousand rubles. It is better to immediately inform the bank about this - and it will forward its demands to return 200 thousand rubles to other heirs (if there are any).

If the debt is greater than the total value of the inheritance, the creditor simply writes off the remaining debt.

In cases where the creditor fails to reach an agreement with the heirs amicably, he usually goes to court. Moreover, he files a claim immediately against all recipients of the inheritance who refused to pay the debt.

Each type of obligation has its own limitation period. In particular, the period for collecting debt on loans, borrowings and payments for housing and communal services is 3 years. For example, if the deceased has not paid rent for an apartment for five years, the management company of the house will be able to collect the debt from the heirs through the court only for the last three years.

It may happen that you received an inheritance in equal shares with other heirs, and the creditor made his claims only to you. In this case, your share of the inheritance exceeds the total amount of the debt, but you consider it unfair to pay alone.

If you do not want to sue a bank, microfinance organization or other organization, you can pay off the debt for other heirs and then demand that they reimburse you for their share. This can also be done through the court.

Limitation period for claims of creditors against heirs

In accordance with the current Civil Code of the Russian Federation, the limitation period for claims of creditors against the successor is established - it is 6 months from the moment he accepted the inheritance. The exceptions to this rule are the following requirements:

• on the need to recognize ownership of property by third parties;
• on reimbursement of expenses incurred while caring for a deceased person during his illness or funeral;
• on reimbursement of expenses for the protection of property passed on by inheritance.

These claims are subject to a different statute of limitations – 3 years.

It is important to take into account several features related to the procedure for submitting demands for the fulfillment of obligations:

• claims can only be made against successors who accepted the inheritance, and it is important to comply with the statute of limitations;
• limitation period is a period that cannot be stopped or interrupted;
• Art. 1284 of the Civil Code of the Russian Federation prohibits foreclosure of copyright within the boundaries of its validity period.

Also on the topic: Use of residential premises by testamentary refusal

If the heir and the creditor are the same person, then he does not lose his right. Referring to the Civil Code of the Russian Federation, the heir is not released from liability for debts, and the creditor does not lose the right to fulfill the obligation.

Articles of the Civil Code of the Russian Federation establish a certain order of satisfaction of creditors' claims:

• Initially, costs incurred due to the need to care for a deceased person during illness or when organizing a funeral are subject to reimbursement;
• then the funds spent on the protection of the inherited property and its management are paid;
• costs of executing the will of the testator;
• other claims made by creditors in accordance with the established procedure in compliance with the limitation periods;
• fulfillment of the refusals provided for by the will.

For a certain period of time, the inheritance may be “lying”. In this case, it is allowed to use fiction - to file claims against the property, which does not turn it into a subject of legal relations.

To what extent is the heir liable for debts?

Absolutely all heirs bear responsibility for the debts of the testator: by will, by law, by representation, etc.

When only one heir begins inheritance, there are no difficulties in determining his scope of inheritance. He is forced to inherit everything. But when there are several heirs, debts must be distributed accordingly among them.

In this case, the following rules for distributing the volume of inherited obligations apply:

• The inheritance must be accepted by the heir. He can do this by formally joining it or by actually receiving it. That is, if the heir does not want to receive debts by inheritance, he needs to renounce the entire inheritance. Partial refusal of inheritance is impossible.
• The heirs are jointly and severally liable.
• Payment of debts by inheritance is subject only to the extent of their share of the inheritance.
• The heirs are liable for debts only in an amount that does not exceed the value of the property received. They cannot answer for other people's debts with their own property. Simply put, if a person inherited 200 thousand rubles and 300 thousand rubles of debt, then he is obliged to pay only 200 thousand rubles.

The heir who has independently paid all the debts of the testator has the right, by way of recourse, to demand repayment of these amounts from the remaining heirs.

The nuances of inheriting debts to minors

Even a minor heir is required by law to inherit if he is entitled to a share. True, if debts are transferred along with the property, in accordance with Art. 28 of the Civil Code of the Russian Federation, the child’s parents are required to make payments.

The absence of parents does not exempt from inheritance, because in this case, the child’s guardians or trustees assume responsibility.

In addition, if desired, the child’s legal representatives have the right to completely refuse the inheritance received by the child. To do this, you will first have to obtain written permission from the guardianship and trusteeship authorities. After this, you can write a standard written refusal of inheritance.

What responsibility do heirs bear for the debts of the testator?

The process of determining the obligations of the testator

The law of inheritance provides for holding heirs liable for the debts of the testator.
Based on the provisions of Article 1175 of the Civil Code of the Russian Federation, heirs by law or by will, in addition to the right of inheritance, also receive the obligations of the deceased citizen. The heirs must answer for the obligations of the testator within the value of the inheritance that is due to them. The heirs are liable for the debts of the testator only when they have accepted the inheritance (and only in this case).

The heirs are jointly and severally liable for the obligations. Joint and several liability refers to the joint responsibility of a group of persons to fulfill obligations. Each heir must answer to the creditor to the extent of the value of the proceeds. The creditor has the right to demand fulfillment of obligations from all persons together or from each person separately. If the same person is the creditor and the heir, then other heirs are released from obligations for such debts.

The debts of the testator may include: rent arrears, property tax arrears, credit debts. Tax obligations end with the death of a citizen. Creditors can submit claims to persons taking into account the statute of limitations (in this case it is exactly three years). Interruption, suspension or restoration of such a period is considered impossible.

The process of paying off the debts of the testator

Claims are made by creditors in writing. The demands should be sent to the heirs, the hereditary notary, and the court. Any of the assignees can receive the claims - or the entire place. But this is possible only within the limits of the value of the inheritance. If one heir has fully satisfied the creditor's claims, then he has the right to demand compensation from other heirs in a recourse manner.

If the property is accepted as a hereditary transmission, according to a will, then liability for the debts of the testator is possible only within the limits of the value of the transmission property. The successor is not liable for obligations with property received by way of transfer.

Inheritance of not all debts is possible. Let’s say that damage caused to the life and health of individuals is not inherited. Inheritance of the testator's debts under contracts that terminate after death is also excluded. They are considered: agreement of lifelong maintenance with dependents, gratuitous use, assignment, trust management.

Availability of credit obligations

After accepting the inheritance of a deceased borrower, citizens are liable for loan obligations and do not have the right to refuse. The banking institution has the right to terminate the loan agreement early (and you have the right to repay the loan early). If the loan is consumer, the banking institution offers the following options:

1. Repayment of debt and continuation of contractual relations.
2. Payment of all debt on the loan, excluding fines, penalties, and penalties.
3. Applying to court for compulsory recovery.

Termination of credit debts of the testator after his death is impossible, since they do not concern the borrower personally.

Loan agreements for real estate or a car are always considered collateral securing property purchased on credit. Property pledged to a bank must be insured. Therefore, the death of the borrower is considered an insured event, and the debt can be covered using insured funds.

The bank has the right to repay the loan by foreclosure on the property. If a foreclosure occurs, family members of the deceased borrower will not be able to use the property. This also affects citizens living in residential premises. The bank may restructure that part of the debt for which the inherited property is not enough.

Foreclosure is not possible on the following property:

1. Residential property, if it is the only place for the borrower’s family to live.
2. Land plots, if they are not related to business activities.
3. Movable property, if it was used by a disabled debtor.
4. Types of state awards, anniversary signs.

If the heirs refuse debts.

Heirs can avoid liability for the debts of the testator only in one case - if they refuse the inheritance. When inheriting property, the most important thing is to assess the condition and amount of debts. Acceptance of an inheritance or its non-acceptance is a right and not an obligation of the heir. Therefore, the legal heirs have a period of six months. During this period, they can exercise their right and accept the inheritance.

Situations in which refusal is impossible: in favor of another person, if there is a will; if it is a mandatory share; in favor of the disinherited heir.

The refusal must be formalized in writing and submitted to the hereditary notary at the place where the inheritance was opened. It is impossible to formalize a refusal of part of the inheritance.

Minors and incompetent citizens can refuse only with the permission of the guardianship authorities. The main principle of inheritance law is that it is impossible to accept rights and not accept responsibilities. Since the grounds for inheritance can be either a will, or according to the law, there are situations when the refusal is formalized according to one of them. When registering an inheritance, you should be careful and cautious; it is better to use the services of an experienced lawyer to take into account all the important points.

How to avoid inherited debts

Art. 1112 of the Civil Code of the Russian Federation defines inheritance as a collection of property and debts of the deceased. Therefore, accepting property and refusing loans will not work. The heirs are liable for the debts of the testator within the limits of the property received.

The only way to avoid inheritance debt is to refuse to accept the property. Persons who formalized the refusal do not bear the burden of responsibility for the debts of the testator.

This can be done in the following ways:

1. By application. The potential recipient submits a waiver application to the notary. However, such a right is retained exclusively for 6 months from the date of opening of the inheritance. The heir can issue a refusal within the specified period, even if he has previously submitted an application for acceptance of the property.
2. Default. To do this, it is enough not to take actions aimed at accepting the inheritance (submitting an application to a notary, actual acceptance). However, this option is not possible if the citizen has previously informed the notary about the acceptance of the property.

Is it possible to refuse to take on other people's debts?

If you were not the one who opened the inheritance case, you can simply not go to the notary and not submit any applications. But in this case you also should not use the inherited property. Moreover, you cannot perform any actions with it. For example, pay housing and communal services debts for the apartment of a deceased relative, send for repairs or insure his car. Otherwise, it will be considered that you have agreed to inherit the property, and with it the debts, representatives of the Federal Notary Chamber emphasize.

If you have already submitted an application for inheritance, you may change your mind until you receive a certificate of your rights to the property of the deceased. You need to contact the notary who is handling the case and write a statement renouncing the inheritance. This decision can no longer be revised.

It will be possible to renounce property after you have entered into inheritance rights only through the court.

For minor heirs, their guardians can refuse the inheritance - but only with the consent of the guardianship authorities.

Are debts inherited?

Many Russians believe that with the death of the testator, his outstanding loan debt is canceled and the obligation to repay the principal debt does not pass to the heirs. But in fact this statement is wrong.

The main document that regulates the procedure for entering into inheritance is the Civil Code. In Art. 1175 of the Civil Code stipulates the possibility of transferring debt obligations to an heir and indicates the obligation of the heirs to repay the debt for a deceased relative or loved one who left a will in their favor.

The estate, in addition to the property of the deceased (such as real estate, savings, shares, vehicles, etc.), also includes debts. The Civil Code does not decipher such a concept as the debts of the testator, but by referring to its individual provisions, you can make the following list of inherited debts:

• debt on loans>;
• microloan from microfinance organizations>;
• debts to third parties (individuals, officially confirmed, for example, by a receipt);
• obligations under annuity agreements or lease agreements;
• obligations under civil law transactions>;
• debts and utilities housing and communal services>;
• tax debt>;
• fines and penalties incurred during the life of the testator.

Debts are transferred to the heirs who received property according to the law or will within the limits of their share. The simplest situation is when all property is inherited by one person, while when distributing debts between heirs, many disputes often arise.

It is worth considering that some types of debt obligations are not inherited after the death of the testator. These include those that the Civil Code (Article 418) refers to as “inextricably linked with the personality of the debtor.” This:

• arrears of alimony paid in favor of the testator's children;
• amounts payable as compensation for damage caused to the health or property of a third party (liability for legal claims);
• other rights and obligations that do not transfer under civil law or family law (for example, the obligation to finish a book by a certain deadline under the author’s agreement).

Liability for debts associated with the person of the testator ceases immediately after the death of the payer. All other debts are inherited.

The heirs can accept the inheritance only if they agree to fulfill their obligations regarding debts. The responsibility of the heirs in relation to the debts of the testator is subsidiary, i.e. equal to him.

Debts are transferred to the heirs in proportion to their shares. If one of the heirs single-handedly pays off all the debts of the testator, then he has the right to expect to receive compensation for his costs from the others.

If there are no heirs, then their rights and obligations pass to the state (the property is considered escheat).

When inheriting debt obligations, heirs should take into account one important civil law rule, which is aimed at protecting their interests: the value of the inherited property cannot be less than the size of the debt obligations . This means that heirs cannot receive debts alone or sacrifice their property to pay the debts of a deceased relative.

If the heir dies before assuming the rights of inheritance, then the property is distributed according to the rule of transmission (Article 1156 of the Civil Code). In this case, debts are not inherited along with property.

Deadlines for filing claims for debts

There is another misconception among heirs that they must repay the debt for the testator only after receiving a certificate of the right to inheritance.

Responsibilities regarding the dogs pass to the heirs at the time of opening of the inheritance, namely on the day of the death of the testator.

Therefore, there are often cases of additional penalties being assessed on heirs for late payments.

But the heirs do not always know that the testator had outstanding debts, so they can appeal the accrued penalties in court. Often the court is ready to accept the death of the main borrower as a valid reason for delay. In this case, the court makes a decision on the need to pay the debt in the amount in which it was at the time of the death of the testator.

Debt obligations of heirs have limited terms of fulfillment. Today they are no more than 3 years, as established by current legislation. The dates are also calculated from the date of death of the testator.

At the end of the three-year period, creditors no longer have the right to assert their claims against the heirs. The debts of the testator are written off as losses by creditors.

Inheritance of debts

• Obligations that are not inherited include: alimony, a surety agreement, and other obligations that terminate with the death of the testator.
• All obligations that do not fall into the first category are inherited: loans, interest, late fees, penalties, arrears in payment of utility bills and taxes.

Heirs can only accept arrears of taxes and fees that were accrued during the life of the testator. The accrual of liabilities ceases with the death of an individual.

Special cases of inheritance of debts

The debts of the deceased pass to the heirs in cases where they are not recognized as inextricably linked with the personality of the deceased testator.

Each specific type of debt obligation has its own characteristics of inheritance and debt collection from heirs.

Debts on mortgages and car loans

Successors are liable only to the extent of the shares of the property they inherited. For such an assessment, it is necessary to take into account the market value of the inherited property. The price is determined on the date of opening of the inheritance case; it cannot change.

In addition to heirs by law and by will, such debts can be transferred to other entities, in particular:

• Guarantors;
• Co-borrowers;
• Insurance companies with a loan insurance agreement.

The heir, if he has entered into an inheritance, must independently notify the bank of the death of the testator as early as possible.

After this, he can act in two ways:

• Re-register the property in your name, use it and repay debts on a schedule approved by the credit institution;
• Sell ​​the property and thus pay off part of the debt.

Child support debts

As a general rule, alimony payments are classified as a category of debts that are inextricably linked with the deceased debtor. However, alimony has its own inheritance characteristics.

The alimony debts of the deceased are canceled only for a future period of time.

However, if during his lifetime the testator accumulated a large amount of alimony debt to his children or spouse and did not have time to repay it before his death, such debts are recognized as ordinary obligations. Therefore, they must be repaid by the heirs.

Debts for utilities

Having inherited an apartment, house, room or other living space, the heir also receives a bunch of debts for utility bills, which formed during the time of non-payment by the testator. This obligation will have to be repaid.

You can find out in advance information about their availability from the management company that services the house.

Features of inheritance of utility debts

Debts for utility bills are often transferred along with inherited property.

The heir should take into account that if he accepts the inheritance, he must repay the resulting debt in full. It does not matter whether the heirs lived in the apartment at the time the utility debt was created.

The legislation does not contain conditions for reducing utility debt for an inherited apartment.

It is worth considering that the situation is similar with tax debt. So, in the general case, debts to the budget are canceled with the death of an individual, but if he has heirs, then they are obliged to pay such a debt.

Debts on unsecured loans

For ordinary debts, as a rule, there is no guarantee in the form of collateral or a surety agreement. In such situations, banks often oblige their clients to enter into life insurance contracts.

If the debtor dies, the insurance company has to pay the debts. If the debtor has not concluded such an agreement, this obligation passes to the heirs.

But in order to receive payment from the insurance company, you will have to prove that the death of the debtor is an insured event. Such a case may be considered:

• Committing an accident;
• The presence of an illness leading to death;
• Death as a result of an unsuccessful operation.

If the debtor was involved in extreme sports and died as a result, the insurance company will not legally pay off his debts. To successfully resolve a dispute with an insurance company, you need to constantly maintain close contact with its employees.

Unfortunately, an inheritance is not always a gift of fate in the form of a sudden receipt of wealth from a deceased relative. Often receiving an inheritance is associated with new difficulties and obligations.

Debts, just like property, are inherited by law and will, and must be paid by the heirs in full within the limits of their inherited share.

The heirs have the right to refuse to receive such an inheritance, but it cannot be partial. You can refuse an inheritance only in its entirety.

Therefore, in order to be prepared to receive a debt inheritance, it is better to make inquiries in advance about loans and other obligations of the deceased testator.

Can debts grow after the death of the debtor?

Financial institutions have the right to charge interest on loans and borrowings even after the death of the borrower.

At the same time, fines and penalties for late payments cannot increase. The creditor is required to record the amount of fines as of the date of death of the person. And it cannot charge new penalties until someone accepts the borrower’s inheritance along with his debts.

It is better to immediately contact a bank, microfinance organization or credit union as soon as you find out that your loved one remains their debtor. There you will need to present a death certificate and request that no fines be assessed until the inheritance and financial obligations officially pass to you.

If the creditor learned about the death of the debtor late and managed to calculate additional penalty interest, you have the right to demand that they be recalculated after you enter into the inheritance.

If the amount of debt is large, by the time you enter into an inheritance, large interest rates may accrue on the loan or loan. Discuss with your creditor whether it is possible to “freeze” the debt until you accept the inheritance.

It is especially important to negotiate if the amount of debt is large or the creditor has property as collateral that you should inherit. In addition, there are cases when there are several heirs and you do not yet know how the property will be distributed between you, and therefore, what part of the debt you will have to pay and what part will have to be paid by other legal successors.

If you are the only heir and know that you will be the one to pay the debts, find out from the creditor whether you can immediately begin making payments for the deceased. Ask for a payment schedule. If the amount is small, it may be more convenient for you to pay off the loan early to save on interest payments.

Financial institutions most often accommodate heirs halfway. They restructure the debt - they shift payments to a later date. Or they agree to accept money from a person who was not indicated in the agreement as a co-borrower or guarantor.

Typically, it is easier for banks, microfinance organizations and credit unions to negotiate peacefully with debtors and receive all payments under the agreement than to seek repayment of the debt through the court or re-register and sell the collateral.

You can ask creditors to recalculate the amount of debt even after you inherit. But this threatens to turn into unnecessary trouble. Perhaps by this time the creditor will have time to transfer the overdue debt to collectors - and it is not always possible to agree with them on the restructuring of the loan or loan.

Liability of guarantors for the obligations of the deceased

The liability of guarantors for the obligations of a person ceases with the death of the latter. There are two exceptions:

• the contract establishes the liability of the guarantor even after the death of the borrower;
• with the consent of the guarantor, to be responsible for the successors of the deceased person.

Also on topic: Statute of limitations for inheritance cases

If the borrower has no heirs, then the inheritance mass is considered escheat - transfer to the state treasury. Consequently, the state fulfills the obligation to repay the loan. An exception is the consent of the guarantor to answer for the obligations.

As for the limits of liability, the guarantor is liable for obligations within the limits of the total loan amount. Often this provision becomes the cause of a conflict between a banking organization making claims within the limitation period and an individual acting as a guarantor.

Is it possible to refuse an inheritance with debts?

Unfortunately, in some cases, inheritance is more of a headache than it's worth. This happens in cases where the debt “eats up” all or most of the inherited property. Then you urgently need to look for an answer to the question of how to avoid inheritance debts.

In all situations, without exception, either the heir himself or his legal representative (if the heir is a minor) has the right to refuse inheritance. To do this you need:

1. Within six months from the date of the start of the inheritance procedure, you must write a statement in any form about renunciation of the rights of the heir. It is possible to issue a refusal even if the heir learned about the debts after entering into the inheritance; the main thing is to have time to submit the application within six months;
2. The document should be certified by the notary who took over this inheritance matter;
3. Depending on the wishes of the applicant, the alienated inheritance rights can be transferred to a specific heir, or to the general inheritance property;
4. Of course, indirect refusal of inheritance by ignoring the possibility of entering into it is also allowed. But this option is less reliable. To protect yourself from a legal point of view, it is better to issue a refusal.

That's all. If all the heirs formalize the refusal, the property along with the debts will be transferred to the municipality, which, in turn, will begin to regulate the dispute.

Can an heir declare himself bankrupt if he is unable to pay the debts of the deceased?

Maybe, but it makes more sense to declare the deceased bankrupt. In this case, in order to pay off creditors, only his property will be taken and sold, and the things of the heirs will not be touched.

Bankruptcy law describes in detail the conditions and procedures in the event of the death of the debtor.

If an apartment or house was inherited and this housing became the only one for the heir, it will be left. It is only important that this property is not pledged under a mortgage loan. Otherwise, they will sell it to pay off the debt to the bank.

Search for heirs

If there are no payments on the loan, the bank begins to check information about the death of the borrower and look for heirs. The necessary data can be obtained from a notary at the borrower’s place of residence. However, such cases are rare. More often, the heir himself goes to court in order to peacefully resolve issues regarding the debt.

If there is no information about the heirs, the bank goes to court with a claim for payment claims against the executor of the will.

Fines and penalties

Sometimes inheriting debts along with property comes as a complete surprise to the heirs. The financial institution, without notification of the borrower’s death, continues to charge penalties and fines for late payment of loan obligations, so by the time the heir contacts the bank, the amount of debt increases significantly.

When a loan is inherited, the heir becomes the borrower and is subject to an agreement obliging him to make payments according to the established schedule.

During the 6 months while the inheritance is being accepted, the bank can charge interest on the unpaid loan, but it can make demands for payment of the debt only after the heir receives a certificate of acceptance of the inheritance.

In this case, the heir can apply to the court by preparing a statement of claim with a request to cancel the additional penalties accrued by the bank immediately after the death of the borrower.

According to Art. 333 of the Civil Code of the Russian Federation, the penalty can be reduced if the court finds it disproportionate to the consequences of failure to pay the debt. An important argument for the court is that late payment is not a consequence of negligence, but the result of force majeure. The heir’s guilt for non-payment of the loan will begin from the moment the certificate of the right to inherit property comes into force.

How can heirs avoid paying fines and penalties accrued by the bank after the death of the borrower?

Banking organizations, having not received information about the death of the borrower in time, automatically charge fines for non-payment. Because of this, by the time the inheritance case is closed, the amount of the original debt increases significantly. This option, of course, does not suit potential heirs. But, from a legal point of view, banks act on the basis of a concluded loan agreement.

In such a situation, it is possible to avoid paying fines and penalties accrued by the bank only by applying to the courts.

According to legal practice, the court in most cases sides with the heirs when rendering a verdict on the annulment of fines. In this case, the court relies on Article No. 333 of the Civil Code of the Russian Federation, recognizing that the delay in the next payment is not the fault of the person who has not yet entered into inheritance rights by that time.

Article 1175 of the Civil Code of the Russian Federation on the liability of heirs for the debts of the testator

The first part of the article mentions the joint liability of heirs. This type of liability arises from debtors to the creditor.

Joint and several liability of heirs

Joint liability of heirs arises when inheriting by any means (by law, will, inheritance contract), if property and property obligations are inherited by several persons.

• Even if the will specifies one heir who refuses the inheritance, joint and several liability will arise when other heirs are called upon by law.
• The creditor has the right to demand the fulfillment of obligations under the agreement from all heirs and from any of them in full or in part.
• Failure of one heir to fully fulfill all the creditor's demands shifts the balance of the debt onto the shoulders of the other heirs.

If the debts are greater than the value of the property

The heirs divide among themselves both the property of the deceased and his debts. In this case, each heir pays his share of the debt, which cannot go beyond the limits of the inherited share (paragraph 2, paragraph 1 of Article 1175 of the Civil Code of the Russian Federation).

This literally means the following:

If the value of the testator's debts exceeds the value of the property included in the inheritance, the heirs simply will not receive anything. They do not have to pay anything extra from their own pocket. .

Responsibility of heirs of a mortgaged apartment

As a rule, the borrower's total debt to the bank always exceeds the value of the collateral. This is due to bank interest, which the bank includes in advance in the amount of the debt. Upon the death of the debtor, ownership of the mortgaged apartment will pass to his heirs. But only if the loan is repaid in full.

If the heirs refuse to transfer the loan to themselves, the testator’s debt will remain part of the inheritance. It can be paid for using inherited property, including the mortgaged apartment itself.

If the entire property of the debtor (together with the collateral) is not enough to cover the debt to the creditor, the heirs lose it completely. They will be required to return the mortgaged apartment to the bank, which will sell it at auction to repay the loan. But to pay interest to the bank for a loan taken by the testator, in accordance with the rules of Art. 1175 of the Civil Code of the Russian Federation, heirs are not obliged.

• Unlike the heirs, the debtor's co-borrowers, who are also jointly and severally liable, are obliged, at the request of the creditor, which can be presented at any time, to pay the debt in full along with interest.
• The guarantor has the right to enter into an agreement with a credit institution on subsidiary liability, which occurs upon confirmation of the borrower's insolvency.

Inheritance of duties during hereditary transmission

The debts of the testator, transferred to the deceased successor after the opening of the inheritance, are transferred to the latter's heirs by the right of hereditary transmission and are paid within the value of the testator's property. At the same time, the debts of the deceased successor cannot be paid at the expense of this property (Part 2 of Article 1175 of the Civil Code of the Russian Federation).

How are the claims of the testator's creditors to the heirs fulfilled?

The testator's creditors have the right to file a claim against the heirs in court if the statute of limitations has not expired (Part 3 of Article 1175 of the Civil Code of the Russian Federation).

A break, suspension or restoration of a missed limitation period is not permitted.

It is also allowed to present property claims of creditors even before the opening of the inheritance:

• to ensure the safety of the property, an executor of the will or a notary will be involved;
• the legal process will be suspended until the inheritance is accepted, and if there are no heirs, until the property is transferred to the state as escheat.

Illegal demands of collectors

Quite often, in order to minimize losses, banks sell loan debt to collectors. They often use semi-legal schemes to influence the heir and try to force him to pay off debts for the testator by all means.

If the heir did not enter into inheritance rights, was not a guarantor for the loan, or refused the inheritance, demands to repay the debt have no legal basis.

In such a situation, you need to threaten the collectors with contacting law enforcement agencies and ask them to provide demands in writing (usually they do not agree to this, since they understand that they are acting illegally).

If calls continue, then you need to try to record them and make sure that witnesses are present during the conversation. Then you can contact the prosecutor's office with a statement of extortion.

Thus, the debts and loans of the testator are included in the estate along with other property. The responsibilities of the heirs include payment of the debts of the testator: such as loans and borrowings, debt for housing and communal services and other shares that are not related to the personality of the deceased (alimony and compensation for harm). Debts are inherited to the extent of the value of the inherited property. The heirs have the right to refuse inheritance and, along with it, debts.

Is it possible to get rid of responsibility?

The successors are not always notified on time that the testator had a debt that now needs to be repaid. Therefore, in practice, it often happens that the successor first accepted the inheritance and then learned about the debts of the testator.

It follows from this that before entering into inheritance rights, it is worth clarifying the relevant information. Thus, the successor can relieve himself of liability for debts:

• Not accepting inheritance. In order not to accept an inheritance, it is not necessary to perform any actions. In the future, you can try to restore rights to property;
• Refusing inheritance. If the successor accepted the inheritance and then learned about a large debt, he has the right to refuse it. All this must be done within 6 months from the date of opening of the inheritance. When registering a waiver, the heir completely loses his rights to the property, which cannot be restored.

Arbitrage practice

Courts regularly satisfy the claims of banks regarding the collection of debts from the heirs of a deceased citizen.

Example. The bank filed a lawsuit to collect the debt under the loan agreement from the heir. The co-defendant was the borrower's guarantor. The requirements are justified by the existence of a loan agreement that was concluded between a relative of the heir and the bank. The bank claimed that the heir accepted the property in the form of an apartment and a cash deposit. However, after assuming property rights, the new debtor and his guarantor refuse to fulfill their obligations.

The creditor asked to recover from the defendants the amount of debt and the state duty paid. The guarantor admitted the claims. But, he asked to assign the obligation to collect the debt to the heir due to the lack of financial ability to repay it. The heir did not appear in court. Since he lives in another city. By phone I asked to refuse the claim. But the court satisfied the creditor’s demands and jointly collected the debt from the heir and the guarantor (Decision of the Verkhnebureinsky District Court of the Khabarovsk Territory dated 02/07/2011, case No. 2-48).

If the heirs abandoned the property of the deceased, the court will refuse to collect the debt from the credit institution.

Example. The bank went to court to collect funds from the heir to pay off the loan debt. The defendant did not appear in court. He did not indicate the reasons for his absence. Properly notified. The notary reported that the inheritance case had not been opened. Information from the State Traffic Inspectorate, Rosreestr, and the State Real Estate Cadastre did not contain data on the deceased’s property. The court refused to satisfy the bank's demands, since the persons who entered into the inheritance were not identified (Decision of the Baymak District Court of the Republic of Bashkortostan dated May 11, 2017, case No. 2-429).

Procedure for fulfilling obligations

The creditor has the right to make a demand for repayment of the debt from the day of the debtor’s death, but the heirs cannot fulfill it until they enter into inheritance. Therefore, the demand is drawn up in writing and submitted to the notary’s office.

The notary must register the received claim, after which he notifies the successors that they have unfulfilled obligations and what is needed to satisfy the creditors' claims.

The repayment procedure varies depending on the type of debt. Therefore, after accepting the inheritance, you should contact the bank, utility service or tax authority and clarify the specifics of fulfilling the obligation.

Selling debt to collectors

Often, banks, in order to avoid unnecessary costs of litigation, sell credit debts to a collection agency. Such an organization uses relatively legal methods.

A person who does not accept the inheritance is not obliged to pay the debts of the deceased. However, agency employees are trying to force citizens to pay.

At the same time, they use the weak legal knowledge of the heirs, threaten and blackmail. In case of illegal actions, a citizen must act as follows:

• ask for a written demand for payment of the debt;
• record threats;
• file a complaint with the prosecutor's office.

The law establishes fines for collection agencies for illegal actions in the amount of 500,000 rubles.