Understanding Inheritance Debts in Ukraine: Rights and Responsibilities

Ukrainian law stipulates that after a person's death, heirs share not only property benefits, but also the debts of the deceased, including loan debt, alimony, utility bills, court-ordered debts, and others. The specialists of Free legal aid explained what nuances are important to take into account when inheriting.

The inheritance includes all the property of the deceased that belongs to him or her on the day of death: it can be movable, immovable property, cash, deposits, and debt obligations. The testator's debts come as an unpleasant surprise to his or her heirs, who expected to receive an apartment, car, or dacha, but did not expect to become debtors instead of the deceased. Partial acceptance of the inheritance and rejection of the debt part are not allowed.

It is not the property of the testator that is transferred to the heir, but rather the rights and obligations that have not terminated at the time of opening the inheritance. The only exception is personal obligations. According to Article 608 of the Civil Code of Ukraine, an obligation is terminated by the death of the debtor if it is inextricably linked to his or her personality and therefore cannot be fulfilled by another person.

How to find out about the debts of the deceased

• On the website of the Judiciary of Ukraine, check whether the testator is a party to a court case. The check is carried out under the item "Party to the case", where it is necessary to indicate the surname, name and patronymic of the testator.
• Check for enforcement proceedings against the testator by following the link.
• Check whether the testator is in the Unified Register of Debtors.

What can be the amount of debt obligations

The obligation to repay the debt falls on the heir only to the extent of the inheritance property that he or she receives. According to the current legislation of Ukraine, creditors' claims cannot exceed the value of the inherited property and are repaid only within the value of this property.

After accepting the inheritance and debt obligations, the heir must pay the debt and interest on it, if it is a bank loan. Moreover, the payment will have to be made not from the date of acceptance of the inheritance, but from the date of its opening, i.e. from the date of the testator's death. For failure to fulfill these obligations, the heir may be charged with interest payable.

How long can a creditor make claims?

Pursuant to Article 1281 of the Civil Code of Ukraine, the testator's creditor must file its claims with the heir within

• six months from the date when the heir received the certificate of inheritance;
• within six months from the date when the creditor learned of the heir's acceptance of the inheritance or certificate.

If no claims are filed within these time limits, the creditor loses the right to demand repayment of obligations from the heir.

As of February 24, 2022, in accordance with the Law of Ukraine "On the Legal Regime of Martial Law", Ukraine introduced martial law. In accordance with paragraph 3 of Resolution of the Cabinet of Ministers of Ukraine No. 164 dated February 28, 2022 "Some Issues of Notaries in the Conditions of Martial Law", the period for acceptance of inheritance or refusal to accept it is suspended for the duration of martial law, but not more than four months. The certificate of inheritance is issued to the heirs after the expiration of the period for acceptance of the inheritance.

The debts of the deceased testator may be recovered from the heirs who have accepted the inheritance in court. The limitation period for claims of the testator's creditors continues to run in the same manner as before the opening of the inheritance.

Algorithm of actions if you wish to accept the inheritance and repay debt obligations

1. Obtain a death certificate of the testator.
2. Notify the creditor of the debtor's death. Submit a copy of the death certificate.
3. Write an application for inheritance at a notary's office.
4. Six months after the borrower's death, enter into the rights of inheritance.
5. Settle the relationship with the creditor - pay off the debt in a single payment or arrange a payment schedule.
6. At the end of the year in which the inheritance is accepted, file a tax return and pay inheritance tax.

According to Article 1268(1) of the Civil Code of Ukraine, an heir by will or by law has the right to accept or reject an inheritance. If the debt obligations exceed the value of the inheritance, it is worth refusing such an inheritance.

Algorithm of actions in case of unwillingness to accept an inheritance with debt obligations

1. Write a statement of rejection of the inheritance at the notary's office at the place of opening the inheritance.
2. In case of creditor's claims, inform them of your refusal and advise them to apply to the notary's office for confirmation of this fact.

Ігор Льов