inherited debt

[rocky39]

Hi hope someone can give some advice.

My mother-in-law is German but lives here in UK & has done for 40yrs.

Her brother has recently died in Germany & apparantly left loads of debt (his estate didn't cover amount owed).

Creditors have tried pursuing his sons in Germany but they have refused.

My mother-in-law has just received a call from her sister in Germany, to say the creditors are now going to pursue the brothers & sisters of deceased so she should expect a letter.

Her sister has said that if my m-i-l also refuses the creditors will then go after her daughters, including my wife (who incidentally has never been to Germany & never met the deceased!!!).

Does anyone know if this is correct?

[chitchat]

It sounds a bit dodgy to me. Why would the creditors accept so easily a refusal from his sons. If they had a legal obligation to pay his debts then the creditors would surely use the courts and not pursue other members of the family. If there is no more money then there is no more money and the debt should be written off. It seems to me that if everyone is refusing to pay up then so should your wife and your mother-in-law.. Perhaps they will ask the postman next!!! Sorry - but speak to citizens advice.

[Catso]

Dunno for sure, but it sounds very unlikely. The debts would be the responsibility of the estate, and there it should end.

I mean, how many relatives will they try? How distant?Grandchildren next? Second cousin third removed?!

The creditors are just "trying it on", seeing if they can get anything.

And yes, do go and ask the CAB.

[WendyS]

I don't know what the law is in Germany regarding responsibility for debts in a estate which can't cover the bills, but here in the UK, if an estate does not have sufficient assets to meet outstanding debts, relatives cannot be sued for the money. The debts die with the person who incurred them. Creditors may try it on and try to frighten relatives into thinking they are liable but they are not.

Talk to the Citizens Advice Bureau. If they try to badger your wife for money, tell them that you will sue them for harrassment. Even better, don't even respond to their correspondence.

[dzug]

I've a nasty feeling it may be correct - I found this on line:

As a fundamental principle, it should be noted that statutory or testamentary beneficiaries directly and automatically obtain full joint ownership of the estate at the time of death of the deceased or testator. The beneficiaries �inherit� all rights and obligations of the deceased.
A beneficiary can waive his or her claim to the estate within a period of six weeks after he or she becomes aware of the inheritance. This period is extended to six months, if the deceased�s last place of residence was, or the beneficiary�s residence is outside Germany.

It does look as though it is possible to waive a claim - and liability???

The German Embassy in London would be able to help on what the law actually is. It's very easy to read meanings that aren't there. Their website has a form to disclaim the estate if that's what is necessary.

http://www.german-embassy.org.uk/inheritance_l aw.html

(scroll down - it's in English as well)