5 ms·
> Or is debt not part of the inheritance in this case and only the savings/property given to the family? Inheriting debt is virtually unheard of in most of th
by msbarnett 8y ago
> Or is debt not part of the inheritance in this case and only the savings/property given to the family?
Inheriting debt is virtually unheard of in most of the western world. The estate will pay off what it can, but the rest of the debt is simply wiped out.
The exceptions here are mortgages, which are attached to the house and therefore would transfer to whoever inherits the house, if they accept it. And in the US some states have some kind of exception which transfers medical debt to children in some circumstances, apparently, which strikes me as barbaric.
- y4mi 8y agoi guess germany isn't part of the western world in that case? you've got a choice if you've got an inheritance. You either inherit everything that you're eligible to inherit (this includes any outstanding debts) or nothing. At least that's my understanding of my local law, but I'm neither a lawyer nor did i ever inherit anything.
- chrisseaton 8y ago> you've got a choice if you've got an inheritance. You either inherit everything that you're eligible to inherit (this includes any outstanding debts) or nothing. But that's effectively the same situation as in almost any other country. Debts are settled before you are eligible to inherit anything. If debts are more than the estate has, then you don't inherit anything.
- y4mi 8y agoOh, it's very different. Either the court figues out if there is any inheritance and distributes everything left over after settling any debts... Or the inheritor has to figure everything out himself, potentially indebting himself because he didn't know about a debt. Accepting an inheritance is pretty risky in Germany, if your parents weren't well off. And PayPal's letter would make sense if its left for the inheritor to figure out. But that doesn't seem to be the case if I understood the sibling comment correctly? It's always interesting to learn stuff like that :)
- chrisseaton 8y agoSo why would anyone ever choose the second option? What's the upside to that?
- y4mi 8y agoThe second option would be to deny the inheritance.. I'm pretty sure that most poor people do that. The inheritance is rarely worth the potential liability unless the deceased was financially secure... And this doesn't apply to a big part of the population. We've got inheritance lawyers in Germany that can help people figure out wherever accepting a specific inheritance is a smart move... But that often isn't really worth it either.
- chrisseaton 8y ago> Either the court figues out if there is any inheritance and distributes everything left over after settling any debts... Or the inheritor has to figure everything out himself, potentially indebting himself because he didn't know about a debt. But I still don't get it. Option one is to get just your remaining inheritance after any debts are paid, with the court doing all the work. Option two is to get everything and then pay the debts yourself. Option one is zero risk and you get everything you're entitled to. Why would anyone refuse the inheritance instead of taking this option? Option two has some risk and some potential reward. I can understand not taking that option, but there's no reason at all to not take option 1.
- taejo 8y agoThese are not the two options available in Germany: y4ml was comparing the German situation to the common-law one. They are saying that in Germany, the options are: accept both the assets and liabilities, or reject both.
- rndgermandude 8y agoNo, option one is: you get everything and have to pay off any debts that come with it. Option two: you refuse the entire inheritance, get nothing but also don't get any debts.
- kosievdmerwe 8y agoIn case someone wants to look it up it's a kind of filial responsibility law.
- paulie_a 8y agoRegarding the medical debt aspect being passed on...I would write a nice letter telling them to fuck off. They will never see a dime.