Under the principle of universal succession in Polish inheritance law, heirs step into the legal position of the deceased, acquiring not only their assets but also their liabilities. This means that inheritance can be both a benefit and a financial burden – especially when the deceased leaves behind property together with substantial debts.
Is there a remedy? Yes – an heir may either reject the inheritance entirely or, if they prefer to limit liability, accept it with the benefit of inventory (przyjęcie z dobrodziejstwem inwentarza). This article focuses on the latter option.
How does it work? What does “benefit of inventory” mean in practice?
Let’s consider an example: Jan, a widowed father of Janina, died unexpectedly, leaving his daughter as his sole heir. Jan had significant debt – over PLN 600,000. However, he also owned a small property worth approximately PLN 250,000, which held sentimental value for Janina. Janina herself is financially stable, but she could only afford to repay up to PLN 300,000 of her father’s debts. Thus, even if she accepted the inheritance and sold the house, the proceeds would not be sufficient to cover the full amount of debt.
What can Janina do? If she accepts the inheritance unconditionally, she becomes personally liable for all of her father’s debts – exceeding her financial capacity. On the other hand, rejecting the inheritance would mean losing the property entirely. This is where the benefit of inventory becomes helpful.
Accepting an inheritance with the benefit of inventory limits the heir’s liability for the deceased’s debts to the value of the assets inherited. In Janina’s case, this means she would only be liable up to the value of PLN 250,000 – the market value of the real estate. She could sell the house to repay part of the debt, or, if she wishes to keep it, use her own funds up to that limit. Importantly, she would not be liable for the remainder of her father’s debt beyond that amount.
How to accept an inheritance with the benefit of inventory?
To benefit from this legal safeguard, the heir must declare acceptance with the benefit of inventory within six months from the date they learned of their entitlement to the inheritance (not necessarily from the date of death; more about the succession line here: Inheritance in Poland)).
This declaration can be made:
- Before a district court (according to your place of habitual residence or – if inheritance proceedings are already pending in court – during the course of the case),
- Before a notary public in Poland,
- Before a Polish consul, if you live abroad.
For deaths occurring after October 18, 2015, if no declaration is made within the six-month period, the inheritance is deemed to be accepted automatically with the benefit of inventory (by operation of law).
The declaration, like any declaration regarding inheritance (acceptance or rejection of it) may be made orally or in writing, with a notarized signature.
What about the inventory itself?
An inventory list (spis inwentarza) is usually drawn up by a court enforcement officer (komornik sądowy) upon the court’s decision or a motion filed by the heir. The officer identifies the assets and liabilities of the estate and estimates their value. This step is crucial in determining the exact extent of the heir’s liability.
Summary
The benefit of inventory is a key legal tool under Polish inheritance law. It enables heirs to protect themselves from overwhelming debt while preserving the opportunity to receive valuable assets. If you’re inheriting from someone who passed away with both assets and obligations, this option may be essential.
The rules listed above are general and cover the most important aspects of the benefit of inventory under Polish law. However, each case is unique and may involve different legal provisions. That’s why it’s essential to analyze the situation thoroughly before taking any steps. If you have any questions or need assistance from a lawyer, please do not hesitate to contact me via email (kotowska.kancelaria@gmail.com) or by phone (+48 608 393 623).
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