Accept or reject the inheritance

When receiving an inheritance, the question may arise as to whether it is better to accept or reject the inheritance, especially if you are not entirely clear about everything the deceased owned.

Why consider rejecting the inheritance

When an inheritance is accepted, personal assets undergo changes related to both the deceased’s assets and rights, as well as any debts they owed.

That’s why Each specific case must be analyzed to determine whether the best decision would be to reject the inheritance or whether other decisions can be made.

When to reject the inheritance

There are some cases in which it is ideal to reject the inheritance.

This often occurs when the deceased leaves more debts than assets, or when the heir is unable to pay certain taxes associated with the inheritance, such as the Inheritance and Gift Tax and the municipal capital gains tax.

Normally the best option will be to reject the inheritance when there are significant debts that make the assets and rights worthless.

This occurs when there are large loans, mortgages, or similar, and the assets are not very valuable. Having to make payments doesn’t compensate for the ownership of the assets.

Another common reason for rejecting an inheritance is that accepting it would entail facing large expenses or future liabilities related to the assets to be inherited. For example, if we inherit a dilapidated home or one that requires significant repair or maintenance costs.

Receiving assets that are legally complex, whether because they belong to many people in small shares or because they are complicated to sell or manage, can also be a reason to reject the inheritance.

The rejection of the inheritance is irrevocable

When making the decision, it’s important to know that both acceptance and renunciation must be made in full. They cannot be made conditionally, subject to a deadline, or in part.

How to reject the inheritance

Once the decision to reject the inheritance has been made, you must know what steps to take to do so.

The key in these cases is that it’s an express waiver that must be formalized before a notary in a public deed. Therefore, you must go to a notary and follow their instructions.

Notaries must inform you of the consequences of renouncing your inheritance, advise you, and answer any questions related to the process.

The consequences of renouncing an inheritance

The consequences of renouncing an inheritance are:

of the assets and rights of the inheritance cannot be accessed.
You have to give up everything, it can’t be done partially.
The portion of the inheritance that is rejected will increase the portion of the inheritance of the legitimate heirs who have accepted it.

An alternative to rejecting the inheritance is to accept the inheritance with the benefit of inventory. In the latter case, if the inheritance entails debts, these will not affect the estate of the heirs and will be settled with the assets of the estate itself. The heirs will receive any remaining debt.

Acceptance for the benefit of inventory as an alternative to rejection of the inheritance

Accepting the inheritance with the benefit of inventory is a legal option with which the heirs can accept the inheritance without having to face debts, which may even exceed the value of the inherited assets.

This decision protects the heir’s personal assets.

How acceptance for the benefit of inventory is carried out

The steps followed in accepting the inheritance for the benefit of inventory are as follows:

Formal acceptance. The heir must formally express his or her willingness to accept the inheritance for the benefit of inventory.
Inventory. A detailed inventory is made of the estate’s assets and debts.
Filing before a notary. The inventory is submitted to a notary for approval.
Payment of debts. Debts are paid from the assets of the inheritance.
Distribution of remaining assets. If any assets remain after paying debts, they are distributed among the heirs.

Deadlines for acceptance for the benefit of inventory

There are differences in the deadlines depending on the situation:

If the heir already has the inheritance or part of it in his possession, he must communicate his decision within 30 days.
If the heir does not have the inheritance in his possession, the deadline to communicate his decision is 30 days from the expiration of the deadline to accept or reject the inheritance.

Accepting or rejecting the inheritance is an important decision because it affects the heir’s assets. It is advisable to do so in certain cases, such as when there are significant debts or expenses related to the assets. In this case, you will need to consult a notary. There is also the option of accepting the inheritance with the benefit of inventory.

Further information

This article is part of our service Inheritance in Spain. Visit this section where you will find all the useful information on this topic, including a complete guide on Inheritance in Spain with a non-resident, expat or foreigner.

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