1.What is the inheritance contract in general?

We generally refer to the agreement drawn up by the heir with an inheritor/third party, whereby they agree to renounce their inheritance right or to receive less than what the law stipulates. The main purpose of the inheritance contract is to circumvent the restrictions imposed by inheritance law, allowing the testator—the person drafting the will—to distribute their property without limitations, bypassing the statutory heirs who are considered necessary heirs according to the law.

These contracts are prohibited by law and are therefore considered void if made, as they restrict the testator’s freedom to inherit as they truly wish, maintaining their will unaffected by pressures and exchanges offered by third parties.

2.When is it prohibited?

The rule is that the inheritance contract is prohibited in its “classic” form—when an heir offers consideration to the testator and they agree for the heir to inherit more than they would normally inherit, thereby circumventing the other heirs. Since there are provisions for the legal share, any restriction imposed through an inheritance contract that leads to the other heirs receiving less than the legal share they would normally receive leads to the nullification of the inheritance contract.

3,Are there exceptions where it is allowed?

There are exceptions to the above rule—cases where the inheritance contract is allowed, such as:

• The acceptance of the inheritance, which is the agreement between the heir and the other heirs regarding the division of the estate at that time. It’s important to note that this agreement does not bind the heir as to how they will draft their own will, and if there are assets that have not been included in the agreement, they will be divided according to the law—based on the provisions of intestate succession.
• The causa mortis donation, which is a donation agreed upon with the condition that the donor will die first so that the recipient can receive the donated item. This donation can be revoked either by the donor or by their heirs if the recipient commits an offense. Additionally, if real estate is being donated, a notarial deed is required (similar to regular donations), as well as the registration of the contract.

4.Which type of will is preferable to draft?

To make an informed choice, it’s good to weigh the advantages and disadvantages of each type of will:

The holographic testament:

• Offers simplicity as it is written by the testator themselves, without the need for a notary and the associated expenses.
• However, it is more easily lost as a will, and there’s a risk that the testator may be influenced by third parties during its drafting.

The public testament:

• Provides more formality and security, and as a public document, it can only be contested as fake, and it can also be enforced.
• On the other hand, it requires a more complex procedure before a notary and witnesses, which not everyone is familiar with.

The secret testament:

• Also characterized by greater security, as the document remains with the notary and is not accessible to third parties.
• However, the fact that the testator initially drafts the will alone and then delivers it to the notary does not completely rule out the possibility of their will being influenced by external persons/events/factors.

5.When should I renounce if I want to?

In case the heir does not wish to accept the inheritance and therefore wants to renounce it, then according to the law, they have a deadline of 4 months from the time they learned about the induction and the reason behind it. Because the above phrase seems unclear, let’s break it down further:

• The heir learns about the induction when they become aware of the death of the deceased as well as the fact that they are next in line of succession to inherit the estate.
• The reason for the induction means the reason why, according to the law, the heir is “called” to the inheritance. This could be because of a testament or because there is no will based on the rules of intestate succession—meaning all previous heirs renounced their claim and it’s now their turn.
• It’s not excluded that the heir may be called to the inheritance for multiple reasons—multiple wills, a will for part of the estate and intestate succession for the remainder. In such a case, the heir must renounce as many times as there are (inheritance) portions from which they are called to inherit.

The conclusion is that the starting point of the renunciation deadline is a movable point in time—the heir’s knowledge of the above two elements. Therefore, a positive and complete knowledge of the heir is required, so slight negligence/simple assumptions about whether they are called to the inheritance or not are not enough.

For residents abroad, as well as in cases where the deceased had their last residence abroad, the renunciation deadline is 1 (one) year.

6.And if I don’t do it?What happens?

It’s not excluded that the heir neglects to renounce and therefore allows the four-month deadline to expire unused. In such a case, in legal fiction, they are considered to have silently accepted the inheritance, and the following legal consequences occur:

• The individual property of the heir merges with the inheritance, which now constitutes a single entity.
• The individual creditors of the heir can now be satisfied for the heir’s debts from the assets of the inheritance.
• Similarly, the creditors of the inheritance can be satisfied for the debts of the inheritance from the individual property of the heir.
• Those who were next in line of succession to inherit will not be called to the inheritance, as the induction of the inheritance to the heir ceases with their acceptance.

7.Can I be an heir without being responsible for the debts of the inheritance?

It’s a fundamental question for many in the realm of inheritance law when the discussion arises. The answer is yes, but with conditions:

• The heir can accept the inheritance with the benefit of inventory—meaning they are responsible for the debts of the inheritance only up to the value of the assets of the inheritance, not with their personal property.
• Minors and those under judicial support always accept with the benefit of inventory by law, and they have a deadline of 1 year to prepare the inventory.
• To maintain the benefit of inventory, the heir must prepare the inventory of the inheritance within 4 months after making a declaration of acceptance of the inheritance.
• The heir is responsible towards the creditors for managing the inheritance and must be accountable to them, as well as not sell assets of the inheritance without court permission—such as real estate, stocks, or bonds.
• If the heir breaches any of the above obligations, they lose the benefit of inventory, and therefore, they are personally liable with their own property for the debts of the inheritance against the creditors.
• To be relieved from these burdens/obligations, the heir with the benefit of inventory can deliver the inheritance to the creditors, for them to collect their claims, and in case there is remaining assets, the heir will receive them.

8.What about the judicial settlement of the inheritance?

This is another institution for relieving the heir from the debts of the inheritance, and its procedure is as follows:

• The heir (even with the benefit of inventory) submits an application to the court and requests the judicial settlement of the inheritance.
• If the court accepts the application, it appoints liquidators (the heir can also be appointed as a liquidator).
• The liquidators invite the creditors of the inheritance to declare their claims within 4 months from the publication of the court decision.
• For this reason, creditors must make their declaration in a timely manner and provide supporting documents for their claims.
• Simultaneously, the liquidator sells the assets of the inheritance—for example, they may sell a property to gather liquidity.
• If the assets of the inheritance suffice, then all claims of the creditors that were declared on time and legally are satisfied.
• If the assets are insufficient, then the creditors are satisfied proportionally—those with mortgages/pledges have priority, followed by those with lesser privileges, etc.
• After these disbursements, the remuneration of the liquidator for the work provided is deducted from the assets of the inheritance.
• Finally, if there is remaining available assets of the inheritance after the above, they are transferred to the heir who requested the judicial settlement—meaning there are no longer debts of the inheritance to the creditors.

9.Are there inheritances without heirs?

The legislator, considering the possibility that an inheritance full of debts may not be accepted by any heir, made the following choice: He stipulated that in case all relatives of the heir renounce the inheritance (including the spouse), then the State (specifically in the 6th and last order of intestate succession) will be called as the heir to the inheritance.

• The State always accepts the inheritance with the benefit of inventory—meaning it is responsible for the debts only with the assets of the inheritance.
• It cannot renounce the inheritance that comes to it by intestate succession (without a testament)—if it is called to the inheritance through a will, then it can renounce.

To reach this (not so common) phenomenon, the following individuals must renounce in order:

• the children of the deceased
• the parents/siblings/nieces/nephews of the deceased, as well as the grandchildren of the siblings
• the grandparents of the deceased, as well as the uncles/aunts and their children (from both sides)
• the great-grandparents of the deceased (from both sides)
• the spouse of the deceased

10.What if the heir is unknown/unresponsive to accept the inheritance?

This scenario is often encountered in Greece, especially if the heirs do not have good relations among themselves/the assets of the inheritance are unknown, etc. In the event that the heir is unknown/has not yet been found/it is uncertain whether they have accepted the inheritance or not:

• The inheritance is called “pending” and a guardian of the pending inheritance is appointed by the court.
• This guardian has the authority to represent the disputed heir and manages the inheritance.
• Meaning they prepare an inventory of the assets, collect any claims the deceased may have had against third parties before their death, and generally take measures to maintain the integrity of the inheritance as much as possible.
• They may also legally represent the inheritance in case someone claims to be the heir and files a lawsuit for this purpose.
• If no heir is found within a reasonable timeframe (from a few months to a few years), the State will be appointed as the heir by a court certificate, and thus it will exercise the rights and obligations arising from the inheritance.

 

The above information does not constitute legal advice and no liability is assumed for it. For more information, please contact us.