Protection Of Creditors’ Rights In The Disclaimer Of Inheritance
Protection of Creditors’ Rights in the Renunciation of Inheritance
Protection of the Deceased’s Creditors: An heir who renounces an insolvent inheritance is liable for the value that he or she is obliged to return to the estate creditors from the amount received as a gift subject to equalization within five years prior to the deceased’s death (TMK 618/l). However, ordinary education and training expenses and customary dowry are exempt from this (MK 618/ll). According to MK 618/lll, a malicious heir is liable for the full value of the gift they are obligated to return, while a bona fide heir is only liable under the rules of unjust enrichment. If the conditions of MK Article 618 are met, there is no need to revoke the renunciation; liability arises automatically. However, the renunciation remains valid, and the heir is liable for the gift received.
Protection of Heirs’ Personal Creditors: If an insolvent heir rejects the inheritance solely to harm their own creditors, the creditors or, if bankruptcy proceedings have been initiated against them, the bankruptcy estate may have the rejection annulled within six months if adequate security is not provided (TMK 617/l). This period is a statute of limitations and begins from the moment the heir renounces the inheritance. If the court decides to revoke the renunciation, the inheritance is officially liquidated (TMK 617/ll). If anything remains for the renouncing heir after the official liquidation of the inheritance, it is first paid to the creditors who objected, and if anything remains after that, it is paid to the creditors who did not object to the renunciation. If anything remains after that, it is given to the heirs who replace the renouncing heir (TMK 617/lll).
For this cancellation action to be brought, the heir must have had the intent to harm the creditors. Otherwise, the cancellation of the renunciation cannot be sought. The competent court for this action is the Civil Court of First Instance, and the court with jurisdiction is the court of the defendant’s last place of residence.