How can I protect myself if I might only inherit debts?
If it is unclear whether the estate is over-indebted and you want to accept the inheritance in principle, you should consider applying for an order to administer the estate in accordance with Section 1981 (1) BGB.
Estate administration legally separates the heir's personal assets from the estate retroactively to the date of inheritance. The estate is liable for the estate's liabilities and the heir's own assets are liable for the heir's own liabilities. The administration of the estate is effectively a guardianship of the estate for the purpose of satisfying the creditors of the estate. However, when the administration of the estate is ordered, the heir loses the authority to administer and dispose of the estate in accordance with Section 1984 BGB. The administrator of the estate is now authorised to administer and dispose of the estate. Pursuant to Section 1985 BGB, the administrator must determine the estate and the creditors of the estate. He may only satisfy creditors of the estate after his examination has shown that the estate is sufficient to fulfil all liabilities. Only after the known liabilities of the estate have been satisfied may the remaining estate be left to the heirs. If the estate is over-indebted, however, he must apply for insolvency proceedings.
The application for an order to administer the estate can be rejected in accordance with Section 1982 BGB if the costs of administration are not covered. The application will not be rejected for lack of assets in accordance with the provisions of sections 26 (1) sentence 2 and 207 (1) sentence 2 InsO if a sufficient advance payment is made. If the application is rejected for lack of assets, the heir has the option pursuant to Section 1990 BGB to refuse to satisfy a creditor of the estate to the extent that the estate is insufficient.