Inheriting an estate may involve not only acquiring assets, but also liability for debts left by the deceased. Under Polish law, heirs generally inherit not only the rights but also the obligations of the deceased. This means that an heir may, for example, be obligated to repay loans taken out by the deceased.
The issue of inheriting debts, as well as the rules and limits of liability for inheritance debts, may not be as obvious to persons living outside Poland, especially if they are familiar with a different way of handling probate proceedings. This applies, for example, to heirs living in the United States who inherit an estate in Poland from a relative and may not always be aware that, under Polish law, a creditor of the deceased may seek payment directly from them. In practice, heirs sometimes learn about the deceased’s debts and the extent of their own liability only upon receiving a demand for payment, or even a lawsuit.
It is worth noting that the rules governing liability for inheritance debts under Polish law are entirely different from those applicable in probate proceedings in the United States. In Poland, Executors or Administrators of the estate do not determine liabilities and pay debts such as loans, credit obligations, or credit card debt, as attorney Jarosław Kurpiejewski mentioned in his article „Jak wygląda postępowanie spadkowe i administracyjne w USA?”. Liability for inheritance debts rests with the heirs, which may result in payment claims being brought directly against them rather than against the estate. The estate as such does not pay its own debts – this is a fundamental difference between probate proceedings in the United States and in Poland.
What if an heir does not want to inherit debts?
An heir may decide whether to accept or disclaim the inheritance. Polish inheritance law allows an heir to make a declaration disclaiming the inheritance. A declaration accepting or disclaiming the inheritance may be made within six months from the date on which the heir learned of the basis for their entitlement to inherit. In the case of the closest relatives who are first in line to inherit, this period will, as a rule, begin when they learn of the deceased’s death.
It is important to remember that disclaiming an inheritance excludes the heir from inheritance. An heir’s disclaimer may also result in their descendants, for example their children, becoming entitled to inherit. In such a situation, it may also be necessary for them to take appropriate steps, and in the case of minors, for their parents to take the relevant actions on their behalf.
What are the limits of liability for inheritance debts? Does accepting an inheritance with the benefit of inventory matter?
Within the same period provided for disclaiming an inheritance, an heir may accept the inheritance without limitation of liability for debts (unconditional acceptance), or accept the inheritance with limited liability (acceptance with the benefit of inventory).
Accepting an inheritance with the benefit of inventory means that the heir will not be liable without limitation for the debts left by the deceased with all of their property, both inherited and personal, but only up to the value of the net assets of the estate as determined. The net value of the estate is established in an inventory list or an official inventory.
What is particularly important for an heir is that if no declaration is made within the six-month period, the inheritance is accepted by law, but with the benefit of inventory.
What does liability for inheritance debts look like when there are several heirs? Does division of the estate change anything?
If an estate passes to several heirs, they are jointly and severally liable for inheritance debts until the estate is formally divided. This means that a creditor of the deceased may, at their discretion, seek payment of the entire amount from one of the heirs, even if that heir inherited only a fractional share of the estate. An heir who pays the debt may later seek reimbursement of the appropriate portion from the remaining heirs in proportion to the size of their shares.
Only the division of the estate (contractual or judicial), meaning the allocation of individual estate assets among the heirs, changes the rules governing liability. After the division of the estate, the heirs are liable for inheritance debts in proportion to the size of their respective shares. The creditor therefore loses the ability to seek payment of the entire debt from one selected heir. At the same time, an heir no longer bears the risk of having to recover from the other heirs the portion of the amount paid in excess of their own share in the estate.
Why is it worth seeking professional assistance in inheritance matters?
Although probate proceedings in Poland may not appear to be a complicated procedure, obtaining the assistance of a lawyer can help an heir move more efficiently through the individual stages of the proceedings, including preparing for potential claims arising from inheritance debts. Nevertheless, probate proceedings are formal in nature and require a number of steps necessary to regulate the heir’s legal position and protect their interests.
It is particularly important not to ignore court correspondence. Failure to raise the limitation of liability for inheritance debts in proceedings for payment brought by a creditor of the deceased may have serious consequences for the heir at the enforcement stage. Merely relying on the fact that the inheritance was accepted with the benefit of inventory, without an appropriate reservation in the enforceable title forming the basis for enforcement, may not be sufficient to protect the heir against enforcement against all of their assets. It is also advisable to take steps in advance to determine the net value of the estate by obtaining an official inventory.
Our law firm handles inheritance matters in Poland, including cases involving clients living abroad, in most cases without the need for them to travel to Poland in person. We handle inheritance matters concerning the determination of inheritance rights, division of the estate, forced heirship claims, and matters related to inherited debts. We also assist in obtaining an official inventory and with formalities relating to inherited assets.
