Can you renounce an inheritance and what should you do at a notary?

An inheritance does not always mean a home, savings, or other assets. Sometimes, after the death of a loved one, it becomes apparent that the estate includes loans, unpaid bills, guarantee agreements, or ongoing disputes. For this reason, people often ask: can you renounce an inheritance? Yes, you can, but doing so requires a deliberate decision made at the right time and in the proper form. A verbal agreement among relatives or simply refraining from using the estate assets does not constitute renunciation of an inheritance.

Can you renounce an inheritance in Estonia?

To renounce an inheritance, a declaration of renunciation must be submitted before a notary. The declaration may be made before any notary in Estonia. The notary will explain what probate proceedings are underway, who the potential heirs may be, and what the consequences of the declaration will be.

The deadline is of paramount importance. A declaration of renunciation of an inheritance must generally be made within three months from the time the person became aware, or should have become aware, of the testator's death and of their right to inherit. This does not necessarily mean three months from the date of death. For example, a relative living abroad may learn of the death at a later point, or the right to inherit may only arise once it becomes clear that a closer heir has renounced the inheritance.

The deadline should not be treated as a period during which the matter can be calmly set aside. If a declaration of renunciation is not submitted within three months, the inheritance is generally deemed to have been accepted. Renouncing the inheritance at a later stage may then be impossible. In certain cases of good cause, an extension of the deadline may be requested from the court, but this is not an automatic remedy and does not replace timely action.

You cannot renounce only the debts

Renunciation of an inheritance is an all-or-nothing decision. An heir cannot choose to accept, for example, an apartment or the funds in a bank account while leaving behind unpaid loans and other liabilities. Nor is it possible to renounce only a specific asset forming part of the estate, such as a share in a summer cottage or a motor vehicle.

Upon renunciation of an inheritance, the heir receives no estate assets and bears no liability as an heir for the testator's obligations. This may be a sensible choice where the testator's financial situation is unclear or where the debts in all likelihood exceed the value of the assets. The decision may be more complex where the estate includes the family home, a business interest, or land whose actual value is not immediately known.

Where possible, it is worth gathering preliminary information before making the declaration. Are there known real properties, vehicles, bank accounts, or companies? Did the testator have loans, credit card debts, tax arrears, enforcement proceedings, or guarantees? It is important to bear in mind that even an apparently minor liability may grow considerably due to default interest and procedural costs.

At the same time, a single debt notice does not automatically mean that renunciation is the best course of action. The actual composition of the assets and the extent of the liabilities may be unknown at the outset. In such circumstances, a considered legal assessment helps avoid both a hasty renunciation and unwarranted risk.

What happens when one heir renounces?

Renunciation of an inheritance does not entitle the renouncing heir to determine who receives their share. The law generally treats the situation as though the renouncing heir had died at the time the succession opened. This means that their children or other persons who would have inherited next under statute or testament may step into their place.

For example, if a deceased person's child renounces the inheritance, that child's own children may acquire the right to inherit. This should not be overlooked, particularly where the renouncing heir has minor children. A parent's renunciation does not necessarily mean that the family as a whole is excluded from the inheritance. Renouncing an inheritance on behalf of a minor generally also requires the prior consent of the guardianship court, as this is a decision affecting the child's proprietary interests.

The position may differ where there is a will, an inheritance contract, or a substitute heir named in the will. It is therefore not prudent to draw conclusions based solely on family relationships. A notary, and where necessary a lawyer, can assist in assessing who will actually become heir following the renunciation.

When the deadline has passed: an estate inventory may limit liability

If the deadline for renouncing an inheritance has passed, this does not always mean that an heir must use their own personal assets to satisfy the testator's debts. In such circumstances, the possibility of an estate inventory should be investigated without delay.

In the course of an inventory, the composition of the estate is established: its assets, rights, and liabilities. Where the inventory has been properly carried out, the heir's liability is limited to the value of the estate assets. In simple terms, the heir's own wages, savings, or assets previously belonging to them should not be required to cover the testator's debts.

An inventory does not arise of its own accord, and a list of debts compiled personally provides no equivalent protection. Here too, deadlines and procedural requirements are significant. Where the estate may include substantial debts, action should be taken before creditors submit claims or the assets are distributed.

Particular caution is warranted where estate assets are used, sold, or distributed before the state of the estate has been clarified. For example, withdrawing money from the testator's bank account, selling a vehicle, or making plans to dispose of real property may subsequently give rise to additional questions. Steps taken to preserve the assets are one matter, but the extensive disposal of estate assets before the situation has been clarified is quite another.

Renunciation of an inheritance and the spouse's assets

Upon the death of a spouse, the entirety of the jointly held property does not automatically form part of the estate. Where the spouses were subject to a matrimonial property regime of joint ownership, it must first be established which portion of the property belonged to the surviving spouse and which portion passes into the estate. Only the portion that belonged to the testator is then distributed among the heirs.

This distinction is of practical significance in relation to the shared home, bank accounts, vehicles, and loan obligations, among other matters. The surviving spouse may simultaneously be the owner of their own assets, an heir, and a party to a joint loan agreement. Renunciation of an inheritance does not automatically terminate obligations that the person has themselves entered into with a bank or another creditor.

Nor should it be assumed that the debts of the estate will always remain solely in the testator's name. A guarantee, joint and several liability, or a joint loan agreement must be reviewed separately. The outcome here depends on the documents, not merely on the understanding of financial matters that existed within the family.

When is it worth seeking advice before visiting a notary?

A notary carries out the necessary acts in probate proceedings and explains the available options within the scope of those proceedings. However, where the matter involves the risk of debts, complex family relationships, a business interest, real property, or the interests of minors, it may be prudent to obtain personal legal advice before making a decision.

Assistance is particularly necessary where there is a disagreement among the heirs, someone has already made use of estate assets, the validity of the will is in doubt, or creditors are sending claims. A situation in which one heir wishes to renounce the inheritance while another wishes to accept it also frequently requires a clear plan of action. Each heir submits their own declaration independently, and one person's decision may alter the rights of subsequent heirs.

Eurocity Law Office can help you work through an inheritance matter calmly: we listen to your situation, explain the options in plain terms, and help assess what documents and steps are required. The aim is not to make the decision on your behalf, but to give you a sufficiently clear picture so that your decision is both practical and informed.

When it comes to renouncing an inheritance, the most costly mistake is often simply waiting. Where the testator's assets and liabilities are unclear, it is worth gathering the documents, checking the deadline, and seeking advice before the three-month period quietly passes.