Debt-laden inheritances may lead to headaches for notaries and relatives
Renouncing an inheritance, especially with debts, can take years and involve distant relatives, notaries say, though the Ministry of Justice insists current laws offer sufficient alternatives and restricting heirs would violate constitutional rights.
That somebody would want to renounce an inheritance in the first place mainly relates to not wanting to take on debt if the person who passed away had incurred it.
Renunciation however involves notary fees, which can also be even higher in the case of overseas inheritors, Priidu Pärna, deputy chair of the Chamber of Estonian Notaries (Notarite Koja), said.
"The problem is the chain of renunciations—if children renounce, the inheritance doesn't immediately pass to the state," Pärna said.
This chain can involve siblings, aunts, uncles, or grandchildren, with a three-month window for renunciation.
For debt-laden estates, courts can declare bankruptcy, discharging debts. "This process isn't as complicated or expensive as people think," Pärna noted. The old process often took up to a decade to complete.
Pärna suggested revisiting complex inheritance chains, particularly when large debts make them unprofitable. "Many renunciations occur when someone no longer has property, relying on payday loans," he added.
Notaries face heavy workloads, with fees unchanged for 15 years, threatening rural offices' sustainability.
Ministry of Justice: No need for changes
The Ministry of Justice however sees no reason for change, citing options like inheritance inventory and bankruptcy.
Legal advisor Kaidi Urgas said: "Depriving someone of inheritance could infringe on constitutionally guaranteed rights."
"It's hard to say when an inheritance is a lost cause, as property value is subjective," Urgas added.
Notaries handle these proceedings to determine heirs, not property, she said.
There are currently just under 90 notaries operating nationwide in Estonia.
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Editor: Andrew Whyte