Insolvent Succession

In the wake of a loved one’s passing, the prospect of dealing with their estate can be daunting, particularly if their debts surpass their assets—a situation known as insolvent succession. This guide seeks to demystify the process, providing key insights and advice for those facing such circumstances.

Understanding Insolvent Succession

What is Insolvent Succession?

In simple terms, an insolvent succession arises when the total debts of a deceased person exceed the value of their remaining assets—be it personal belongings, cash, investments, life insurance, real estate, etc. Consequently, even if all assets are liquidated, the total debt cannot be covered.

Identifying Debts

Recognizing the deceased’s debts is often a complex task. The liquidator specified in the will, or the individual chosen by the heirs in the absence of a will, is in charge of compiling an inventory of assets and debts.

Starting the Inventory

A sound starting point for this inventory is to go through the deceased’s documents and any received mail. A thorough review of the most current bank statements, tax returns, and account statements is crucial. For further information on this topic, consider reading this helpful article.

Timeliness is Key

Promptly completing the estate inventory is critical, as the heirs have a six-month window from the date of death to decide whether to accept or renounce the inheritance. After this period, renouncing the estate becomes challenging, barring exceptional circumstances.



Handling an insolvent succession can be a daunting task. However, with proper understanding and careful planning, it can be managed effectively. Remember, it’s always advisable to seek professional advice in such circumstances.

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