We all know that it is possible to inherit assets from a deceased, but in this article we will cover the possibility of inheriting debts as well.
The possible existence of debt inheritance is a question that always ends up arising when a family member dies. Debt inheritance is a situation to be aware of. After all, the non-payment of a debt contracted in life can generate the responsibility of discharge to the heirs. In this sense, the Brazilian Civil Code provides that the estate, the set of assets, rights and obligations that make up the estate left by the deceased, is liable for the debts of the deceased, BUT, once the division is made, each heir will be liable in proportion to the part they got.
That is, in cases where the person is alive, his equity is the guarantee of payment of his debts. In the case of a deceased, the debts will be paid by the estate, up to the limit of available resources. If the estate is not enough to pay the debts, the heirs do not “inherit” the debts. The heirs only inherit the debts if they have received any equity from the deceased. And, in this case, the debt of the deceased will be limited to the inherited equity.
Some examples of debt paid by the estate are: credit card debt; payroll-deductible loans, financing contracts, taxes.
Payroll loans, or any other bank loan, usually have life insurance to cover the debtor's death.
Therefore, the heirs are never obliged to pay the debts of the deceased themselves. There is no debt inheritance. It is the deceased person's estate that will be responsible for paying the debts, regardless of whether the amount is insufficient or not.
Written by: Ana Beatriz Hirata Choi
KEYWORDS: Brazilian law; debt; heritage; civil Code; booty; patrimony; debt; default; expense; due; he must; deficit; passive; to owe; appointment; charge; commission; obligation; responsibility; heir.