In Spain, receiving an inheritance is often seen as an opportunity to improve one’s financial situation through real estate, savings, or other assets. However, along with property, heirs may also inherit the debts of the deceased, which can sometimes lead to serious financial difficulties.
A recent decision by the High Court of Catalonia (Tribunal Superior de Justicia de Cataluña) has once again highlighted the risks associated with accepting an inheritance. In one case, the court required an heiress to pay a debt of 67,064 euros that remained after the death of a relative. The reason was the so-called ‘pure and simple’ acceptance of the inheritance, where the heir becomes the successor not only to the property, but also to all of the deceased’s obligations.
In the case described, the family accepted the inheritance without restrictions, which automatically meant they acquired not only real estate but also significant tax debts. An alternative could have been the ‘benefit of inventory’ (beneficio de inventario) procedure, in which liability for debts is limited to the value of the inherited assets. This approach protects the heir’s personal funds from potential creditor claims.
The court proceedings began after tax authorities presented the family with claims for debts remaining after the death of the head of the family. Initially, the debt exceeded 1.2 million euros, but after several appeals it was reduced to 770 thousand. The inheritance was divided among the widow and three children, each receiving a specific share. One of the heirs received a claim for more than 67 thousand euros.
In an attempt to challenge the debt, the woman first turned to the Economic-Administrative Court of Catalonia and then to the region’s High Court. She argued that the debt was already overdue and that the collection process had violated tax law. However, the judges pointed out that under Spanish civil and tax codes, debts are transferred to heirs in the same amount as those held by the deceased, and cannot be revised if disputes over them were already settled during the testator’s lifetime.
As a result, the court ruled the tax authority’s claims lawful and ordered the heir to pay the debt as well as cover legal costs. The decision emphasizes that when an inheritance is accepted without restrictions, heirs are liable for the deceased’s debts even with their personal assets if the value of the inheritance does not cover all obligations.
Spanish law does not specify a single deadline for accepting or renouncing an inheritance. However, creditors or other heirs may request the notary to require a decision from the heir. In this case, the heir has 30 days to respond. If no answer is given, the inheritance is considered accepted without limitations.
Additionally, certain actions, such as selling inherited property or disposing of the deceased’s funds, are automatically regarded as acceptance of the inheritance. At the same time, simple actions to preserve the estate, such as paying for the funeral or urgent repairs, do not have legal consequences.
Accepting an inheritance with benefit of inventory involves extra costs: you will need to pay the notary’s fees, registration charges, and possibly appraisers’ services. However, this approach helps avoid the risk of losing personal funds due to hidden debts.
If an heir accepts an inheritance that comes with debts, they may need to cover outstanding obligations not only with the inherited assets but also from their personal funds. If they refuse the inheritance, their share passes to other heirs or to those named in the will, who will then assume responsibility for the debts.
Debts among heirs are distributed in proportion to their shares of the inheritance. For example, if someone receives a quarter of the estate, they are responsible for a quarter of the debts. However, creditors have the right to demand the full amount from any of the heirs, after which the heirs settle accounts among themselves.
The situation in Catalonia clearly demonstrates that an inheritance can bring not only profits, but also significant financial obligations. Before accepting an inheritance in Spain, it is essential to carefully evaluate the deceased’s financial situation and consider the option of accepting the inheritance for the benefit of inventory to avoid unpleasant surprises.
