Abandon inheritance documents, time-limited FAQs, and limit the inheritance management process

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Do I need to apply for limited inheritance? What is the statute of limitations for abandoning inheritance? For the handling process, required documents and limitation period of inheritance, please refer to this article!

What is restricted inheritance? Need to do it?

Restricted inheritance is a term of the old law. After the revision of the law on June 12, 1998, the inheritance system was presupposed to be "generalized inheritance with limited liability". Therefore, the term "restricted inheritance" cannot be found in the current civil law provisions. Generalized inheritance limited liability and limited inheritance are very similar in concept, with only a few differences. The following is for the convenience of discussion, and will be called "limited inheritance" for the time being.

(1) The old law restricts the concept of inheritance

Under the old legal system, the heirs would sum up the financial situation of the inheritance, which included passive assets - that is, debts, which could lead to a father's debt to his son.

If the heir does not know the value of the inheritance and does not want to repay the debts for the deceased, in addition to abandoning the inheritance, there is another option, which is to apply for "restricted inheritance" within 3 months, only limited to the acquired inheritance. The heirs are responsible for repaying the debts, that is to say, if there is a surplus after the estate has paid off the debts, the heirs retain the right to inherit, but if the debts exceed the estate, the heirs do not have to use private property to repay, which is a relatively safe practice for the heirs . From the standpoint of protection, minors and proscribed persons also adopted mandatory limited inheritance in the old law.

(2) The new law outlines the concept of limited liability for inheritance

The current civil law fully adopts the limited liability of general inheritance. The heir only needs to pay off the debt of the deceased within the scope of the estate, which can effectively avoid the father's debt to the son. Assuming that the heir does not know the assets and liabilities of the deceased, he can retain the inheritance qualification first. There is no need to rush to abandon inheritance, so that if other inheritances are found in the future, there will be opportunities for inheritance.

Generalized inheritance limited liability is the current legal default inheritance system, soNo special petition to the court is requiredcan be applied.

How is inheritance handled?

Although limited inheritance (general inheritance limited liability) does not require a special application, it does not mean that there are no other procedures to be done. From confirming the death of the deceased to completing the transfer of assets, please refer to the following instructions for the complete process of inheritance. If you are worried that the procedure is more professional and cumbersome, you can also entrust a lawyer to assist you.

1.Apply to the household registration authority for a certificate of removal from the household with the death certificate (and apply for a seal certificate)

If you die in the hospital, the death certificate will be issued by the hospital. If you die at home or on the way to the hospital, you should report to the local health authority for issuance. If you die due to an accident, you need to report to the police and issue a public prosecutor.

Attorney's Note:

If there is real estate in the estate that needs to be divided into inheritance, the seal certificate will be used. It is also recommended to apply at this time to avoid an extra trip in the future.

2.Investigate the property information of the deceased with the IRS with the certificate of deregistration

Common real estate, vehicles, and gift records can be checked from the Internal Revenue Service, and you can also check financial heritage such as deposits/insurance/stock securities of various financial institutions in one stop.

However, please note that the information provided by the IRS may not equal the entire estate. There may be some hidden estates that have not been recorded by the IRS and need to be discovered by the heirs.

Common Hidden Legacy:

  • Claims
  • overseas heritage
  • Valuables entrusted to others

3.File an estate inventory with the IRS information to the court

Be sure to report the estate list to the court within 3 months of learning of the inheritance, so that the court can announce and order the creditors of the deceased to declare their claims within a time limit. The advantage of doing this is that the status of the estate can be determined as soon as possible, so that creditors will not come out to claim their rights after the inheritance is completed.

The list of estates only requires one of the heirs to report to the court. However, if the report is overdue, the inheritance procedures can still be continued, but the risk of debt uncertainty will be faced. In serious cases, the heirs may need to pay with private property. For the debts of the deceased, please refer to the description in the following paragraph for details.

4.File and pay estate tax with the IRS

The taxpayer of inheritance tax is the heir, and must file a declaration to the IRS of the deceased’s domicile within 6 months from the date of the deceased’s death. If there are legitimate reasons, a written application can be extended for a 3-month declaration period.

If the spouse of the deceased wants to claim the "right to claim the distribution of residual property", it must be deducted from the total amount of the estate in the declaration. Deduct it! In addition, if the deceased has donated property to the heir or his spouse within 2 years before the death of the deceased, the gift should also be included in the total estate, and the heir should declare it by himself. A fine of less than twice the amount of tax evasion on the premises.

After declaring the total amount of the estate, if the taxable standard is not met, the IRS will issue an "Inheritance Tax Exemption Certificate", and the taxable person will also obtain an "Inheritance Tax Payment Certificate" after paying the tax.

5.Tax paid/Tax Exemption Certificate to check tax arrears

If the estate contains immovable property, it is necessary to check with any tax collection office/tax bureau whether the immovable property has any outstanding tax records of land value tax and house tax.

If the heir needs to apply for the division of real estate, he can also pay stamp duty at this stage.

This step can be omitted if there is no real property in the estate.

6.Apply for real estate inheritance registration with the land authority

Inheritance registration is a formal process of transfer of real estate. If there is a will, an estate division agreement or a notice of abandonment of inheritance for inspection, it must be presented at this time. It should also be noted that those who apply for divisional inheritance registration need to attach the original seal certificates of all the heirs, so it is recommended to apply in advance in step 1.

Which is better, limited inheritance or abandoned inheritance?

 Limited Inheritance (Generalized Inheritance Limited Liability)Abandon inheritance
Avoid inheriting debtOO
Inherit an undiscovered potential legacyOX
Inherit overseas inheritanceOX
Obligation to pay inheritance taxOX
Assume the legal relationship of the deceasedOX

(1) How to decide whether to abandon inheritance?

Although limited inheritance can retain more opportunities for inheritance, at the same time, the heir also needs to bear the legal relationship left by the deceased, including litigation procedures, leases, equity and so on. Assuming that the deceased did not leave much property, but left many unfinished legal procedures, it may be time-consuming and laborious to deal with, and the heir should also consider the cost and decide whether to abandon the inheritance.

(2) The limited inheritance will definitely not inherit the liabilities?

uncertain. If the debts are paid unevenly because of the heirs, the heirs may still use private property to pay off the debts of the deceased. The most common situation is that the heir fails to file an estate inventory, making it difficult to fully excavate the debt.

1. What are the benefits of the Chen Pao estate inventory?

The purpose of Chen's estate inventory is to let the creditors of the deceased declare their claims as soon as possible so that the estate can be properly liquidated after deducting debts. If the estate is not enough to pay off all the debts, each creditor can be paid proportionally. If the creditor fails to declare the debt within the announcement period, and the heir does not know that the debt exists, then the creditor can only pay the remaining creditors to other creditors. inheritance claims.

For example:

The deceased left an estate of 5 million yuan, but owed 1.5 million yuan to creditors A, B, C, and D respectively. The heirs were completely unaware of these 4 debts.
(1) Suppose that after the heir Chen reported the estate inventory, only D was overdue and did not report the claim. At this time, A, B, and C can all be paid in full, while D can only make a request for the remaining 500,000 inheritance after paying off A, B, and C.
(2) Suppose that after the heir Chen reported the estate inventory, the four creditors reported their claims as scheduled. At this time, each creditor can be paid proportionally, and each can be allocated 1.25 million yuan.

2. What happens if I forget the Chen Pao estate?

If the heir does not report the estate inventory, he must check the debts of the deceased one by one by himself, but it is easy to encounter difficulties in actual implementation, because the proof of creditor's rights such as the IOU is usually reserved only by the creditor, and the debtor will not retain the certificate. If the heirs are not thoroughly checked, resulting in uneven repayment of debtors, the heirs may need to use private property to make payments.

For example:

The deceased left an estate of 5 million yuan, but owed 1.5 million yuan to creditors A, B, C, and D respectively. The heirs were completely unaware of these 4 debts.
Suppose the decedent did not report the estate list, but A, B, and C soon contacted the heirs to request repayment, and the heirs paid off the debts of A, B, and C totaling 4.5 million yuan in full. Half a year later, D contacted the heir to claim creditor's rights, but at this time there was only 500,000 left in the estate, which was not enough to fully repay D's debt, and the heir had to advance 1 million to make up for it.

How to abandon inheritance?

If you are sure that the estate is not enough to pay off the debts of the deceased, or if you do not want to inherit any inheritance at all, and do not plan to handle the financial liquidation for the deceased, then the "abandoned inheritance" that directly withdraws from the heir may be a good choice.

(1) The limitation period for abandoning inheritance

According to Article 1174 of the Civil Code, the abandonment of inheritance needs to be done "within 3 months of knowing that one can inherit."

"Knowing that you are inheritable" may mean any of the following:

1. When you know that the deceased has died and you have the right to inherit.
2. I do not have the right to inherit, but I know that the previous successors have all abandoned the inheritance, so it is my turn to inherit.

(2) Abandoning inherited documents and accepting authorities

For abandonment of inheritance, a petition should be filed with the court in the place where the deceased's domicile was registered when the deceased passed away, and a declaration, a copy of the deed of the deceased, a seal certificate and seal, and a certificate to notify other heirs must be prepared. Documents can be delivered on-site or by registered mail.

(3) Common Problems of Abandoning Inheritance

The following is a list of common legal questions about abandoning inheritance for your reference. Provide your reference.

1.How do people handle inheritance/abandon inheritance abroad?

If the heir is abroad and cannot go to the household registration authority to apply for the seal certificate, the following measures can be taken:

  • Go to the Chinese embassy abroad to make a "Power of Attorney" and entrust a lawyer in Taiwan or a relative or friend to handle matters such as estate liquidation, seal certificate application, estate tax payment and inheritance registration.
  • Bring the unsigned "Inheritance Partition Agreement" to the Chinese Embassy overseas to sign on the spot and request certification.
  • Go to the Chinese embassy abroad to make a "Declaration of Abandoning Inheritance" and "Power of Attorney", and authorize a lawyer in Taiwan or a relative or friend to declare the abandonment of inheritance to the court on your behalf.

2.What should I do if I miss the deadline for abandoning the inheritance?

The 3-month statutory period for abandoning inheritance cannot be extended, so it must be done as soon as possible after learning about the inheritance.

However, if you accidentally miss the deadline for abandoning the inheritance, you may not necessarily inherit the debt. In this case, you only need to report the inheritance list to the court according to the general inheritance process, and pay off the debts of the deceased within the limit of the inheritance. Even if the deceased's estate is insufficient to pay off the debt, the heir does not need to use private property to repay the debt.

3. How to declare inheritance tax after abandoning inheritance?

The taxpayers of estate tax are only the executor, heir, legatee and estate administrator.

Generally speaking, if the inheritance is abandoned, the heir status will be lost, so there is no need to file inheritance tax. If you receive an inheritance tax declaration notice after abandoning the inheritance, you can ignore it, but it is still recommended to take the initiative to inform the IRS that you have abandoned the inheritance, and remind other heirs to report to the IRS to avoid receiving repeated notices.

4. Will abandoning the inheritance affect the estate tax deduction?

The estate tax deduction will be calculated based on the number of survivors, and the estate tax deduction will not be applicable to the abandoned heirs among the survivors.

Attorney's Note:

If some of the heirs voluntarily refuse to inherit the estate, they may not apply for abandonment of the inheritance, and instead use the "inheritance division agreement" to distribute the estate of 0 yuan, so that the application of the estate tax deduction can be retained.

5. After abandoning inheritance, can I still inherit foreign inheritance?

According to Taiwan law, after abandoning the inheritance, you will not be eligible for inheritance, and in principle, you cannot inherit foreign heritage, but there are a few exceptions that need to be judged by the law of the place where the heritage is located.

Further reading:1 minute to understand the qualifications of overseas inheritance, the process and knowledge of cross-border inheritance

6. When does abandonment of inheritance take effect? Can you regret it?

The effect of renunciation of inheritance is effective "from the time when the expression of intention reaches the court" and "retrospectively when the inheritance begins". In vernacular terms, it means that when the declaration of abandonment of inheritance takes effect after it is served on the court, and the effect is retroactive to the death of the deceased, it is equivalent to not being eligible for inheritance from the beginning. Therefore, once the declaration of abandonment of inheritance is served on the court, it cannot be revoked. There are a few exceptions where the heir abandons the inheritance after being deceived, coerced, or wrongly expressed.

7. How to determine the success of abandoning inheritance?

After filing a petition with the court, a written notice from the court will be received within 5 months at the latest, stating that "Abandon inheritance, prepare for inspection”, it means that you have successfully handled the abandonment inheritance.

Don't worry if you haven't received the notice for a long time, you can get it from the court's "Family event inquiry system"Enter the name and ID number of yourself or the deceased to inquire about the result of the case.

8. Can inheritance be abandoned in advance?

Can't. Before the death of the deceased, there is no right of inheritance at all, and naturally the inheritance cannot be abandoned. Even if the declaration of abandonment of inheritance is signed in advance, it has no legal effect.

9. Can I still receive various insurance benefits and consolation money after abandoning the inheritance?

(1) Personal insurance purchased by the decedent himself

If the personal insurance has a designated beneficiary, the beneficiary's qualification to receive insurance claims is based on the insurance contract, not the inheritance relationship, so the beneficiary can still receive insurance benefits after abandoning the inheritance.

However, if no beneficiary is designated, the insurance claim will be included in the estate, and the abandoned heir will not be able to receive insurance benefits.

(2) Labor insurance death benefit

The death benefit of labor insurance is divided into the death benefit of the self and the death benefit of the family members, and the death benefit of the self is divided into the funeral allowance and the benefit of the survivors. The eligibility for claiming the above benefits is determined according to the legal norms, not the inheritance relationship, so it is not affected by the abandonment of the inheritance, and the abandoned successor can still apply for the death benefit of labor insurance.

Further reading:5 legal countermeasures against special reserved points, should be continued, special reserved points calculation method

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