Do the heirs inherit only the assets, or also the debts of the deceased?

Civil legislation of Ukraine proceeds from the fact that the estate includes both the rights and obligations of the testator that existed at the time of the opening of the inheritance and did not terminate due to death. This primarily concerns property rights (ownership of housing, land, deposits, corporate rights, etc.) and property obligations (debts under loans, loan agreements, compensation for damages).

Rights that may be transferred: real rights (ownership, use), monetary claims, corporate rights, a share in the charter capital, rights of claim under contracts, intellectual property rights (author’s remuneration, etc.), unless otherwise provided by law or contract.

Obligations that may be “inherited”: the obligation to repay a debt, pay penalties, compensate for property damage, and fulfill monetary obligations under concluded contracts, if they are not purely personal.

Thus, the estate is not only “an apartment and money” but the entire set of transferred rights and obligations that are not exclusively tied to the deceased as a person.

Which obligations do not pass to heirs
The law expressly establishes a list of rights and obligations that are not part of the estate because they are inseparably connected with the person of the testator. They terminate upon death and cannot be asserted against the heirs.

These include, in particular:
Personal non-property rights (the right to a name, honor, dignity, business reputation, the right to privacy).
Rights and obligations under contracts closely linked to the person: agency, participation in a company, membership in associations, labor rights and obligations of an employee or employer, unless otherwise provided by law.
The right to alimony as a right to claim (as a rule, it terminates upon the recipient’s death), the right to a pension, and social benefits that were not assigned or paid, unless the law provides for their transfer to family members.

This means that heirs are not liable, for example, for the deceased’s failure to perform personal duties under an employment contract and do not “inherit” his or her status as a member of an organization.

Inheritance of debts: limits of heirs’ liability
The key protection for the heir is that he or she is liable for the testator’s debts only within the value of the accepted estate, and not with all personal property. Thus, a creditor cannot claim from the heir more than the actual market value of the assets received in inheritance.

Practical consequences:
If the value of the debts exceeds the value of the estate, the creditors may satisfy their claims only within that value, and the remaining debt is effectively extinguished.
If several heirs accept the inheritance, the debts are distributed among them in proportion to their shares in the estate.
Creditors have the right to present their claims to the heirs (through a notary or in court), and the heirs must take these potential claims into account when planning the use or disposal of the property.

Therefore, renouncing the inheritance is sometimes a legally sound strategy when it is known that the debts significantly exceed the assets or the situation with obligations is unclear.

Is it possible to accept “assets without debts”?
Ukrainian law does not allow partial acceptance of an inheritance: an heir cannot accept only “profitable” assets while refusing debts or problematic property. Acceptance of the inheritance is treated as consent to the transfer of the entire complex of rights and obligations that form part of it.

Important points for an heir:
Acceptance of the inheritance (submission of an application to a notary or factual acceptance if the heir lived with the deceased) legally fixes the moment when not only assets but also debt obligations pass to the heir.
Before the six‑month period for acceptance of the inheritance expires, it is advisable to collect as much information as possible: existing loans, court disputes, tax obligations, encumbrances, and seizures.
If necessary, the heir may renounce the inheritance in its entirety, including in favor of another heir, but such renunciation means losing the right to the property and to the related legal opportunities.

Thus, the formula “to inherit only assets without debts” does not work in the classical sense: either the entire estate is accepted (assets plus obligations permitted by law) or it is fully renounced.

Practical advice for heirs
Given the mixed nature of an estate (assets and obligations), heirs should act systematically and prudently. Unconsidered automatic acceptance of an inheritance can create a significant debt burden, whereas competent analysis makes it possible to minimize risks.

It is recommended to:
Check the deceased’s credit history, existing court decisions, and information from registries of encumbrances, mortgages, and tax debts.
Assess the market value of the property (real estate, corporate rights, vehicles, deposits) and compare it with potential debts.
Coordinate a position with other heirs regarding further use of the property, its sale, repayment of obligations, and, if necessary, seek professional legal assistance to plan a strategy for protecting their interests.

Author – Svitlana Krutorohova, attorney at the law firm “Legal Company WINNER”.
If you have questions or problems related to inheritance of property and debts of the deceased, seek individual legal advice to assess risks, properly formalize your rights, and protect your interests in an inheritance case.