Is it compulsory to accept an inherited estate?
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In Germany, when someone passes away, their assets and liabilities are transferred to their heirs through a process known as universal succession. However, what happens when an heir decides to renounce their inheritance, only to find out later that there were assets in the estate? This question was recently addressed by the Higher Regional Court (OLG) Frankfurt am Main.
Renunciation of inheritance is a legal instrument that allows an heir to refuse the inheritance as a whole. It is usually irrevocable once declared within the statutory deadline, which is generally six weeks from the time the person entitled to challenge it learns of the grounds for challenge. However, if the renunciation was made due to a mistake of fact, the heir can petition the court to retract or annul the renunciation.
In a recent case, a daughter renounced her inheritance, believing that the deceased likely did not have any assets. However, she later discovered that there were assets in the estate and challenged the renunciation declaration due to a mistake regarding an essential property of the estate. The OLG Frankfurt am Main granted her appeal based on a mistake regarding an essential property of the estate.
To challenge a renunciation of inheritance, the heir must file a claim demonstrating this error as a legal ground for invalidating the renunciation (Anfechtung wegen Irrtums) according to § 119 German Civil Code (BGB). This claim must be made within a time frame after discovering the error, commonly within one year of the discovery of the mistake, to restore the heir’s rights.
If successful, the renunciation is deemed void, and the heir assumes the rights and obligations of the inheritance retroactively. The court’s decision on the challenge depends on the evidence proving the renunciation was based on a serious factual mistake impacting the decision.
It is important to note that those who gather information to decide on disclaiming inheritance should ensure they do not act as if they have accepted the inheritance, which could be interpreted as a tacit acceptance. Renunciation of inheritance must be formally declared to the probate court (Nachlassgericht), and challenges likewise proceed via court petition.
This case serves as a reminder that it is crucial for heirs to gather accurate information before deciding to renounce an inheritance. If an heir discovers a mistake regarding the composition of the estate or legal consequences, they have the option to challenge the renunciation of inheritance within the designated time limits.
In conclusion, the heir who renounced the inheritance due to an error must submit a legal challenge to annul the renunciation by proving a substantive factual mistake, within designated time limits, to reverse the renunciation effects and claim the inheritance.
- Despite initially renouncing her inheritance due to believing that there were no assets in the estate, the daughter's decision was influenced by a mistake regarding an essential property of the estate, paving the way for a potential health-and-wellness boost from the inherited assets if she successfully challenges the renunciation.
- As mental health is heavily interconnected with financial stability, the heir's ability to challenge a renunciation declaration and claim the inheritance could significantly impact her future health-and-wellness and fitness-and-exercise regimen, providing her the resources necessary to prioritize her health.
