Inheritance

Qualified acceptance in practice (3)
- Which liquidation process to use?”

By Takuya Murao

 

In my previous column, I discussed the details of how to proceed with the qualified acceptance process. In this column I will explain the liquidation process, which is at the heart of the qualified acceptance process.

 

Liquidation methods in the qualified acceptance process

Article 932 of the Civil Code says that assets must be liquidated in the qualified acceptance process by “putting that property to auction”. As this liquidation is limited to the value of the inherited assets that are to be used to meet the repayment obligations in the qualified acceptance process, from the viewpoint of the heirs, there is a risk that the value of the estate to be distributed to them will decrease if the assets are not liquidated for a fair value; therefore, “auction” is required as a process that does not introduce an element of arbitrariness to the liquidation. Any of the estate’s assets may be put to auction, regardless of their type.

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Qualified acceptance in practice (2)
- Key points before and after commencing the qualified acceptance process

By Takuya Murao

 

In my previous column, I discussed in what circumstances the use of qualified acceptance should be selected. In this column, I would like to talk about the details of how to proceed with the qualified acceptance process.

 

Contemplating an application to extend the deliberation period

The deliberation period is the period for deciding whether to renounce an inheritance or commence the qualified acceptance process. An heir must decide whether to commence the renunciation process or the qualified acceptance process, or undertake neither of the processes (i.e. unconditional acceptance) “within three months of the time he/she has knowledge that there has been a commencement of inheritance for him/her”. Despite the name of the deliberation period, it is necessary to decide within the extremely short period of 3 months, so it requires considerable courage to decide whether to use the qualified acceptance process, which entails a particularly complex process.

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Qualified acceptance in practice (1)
– Views on procedure selection –

By Takuya Murao

 

  1. Inheritance methods

There are three inheritance methods in law that a legal heir may utilize, namely unconditional acceptance, qualified acceptance and renunciation of inheritance. Amongst these, unconditional acceptance and renunciation of inheritance are generally used, with it normally being the case that unconditional acceptance is selected when the assets outvalue the liabilities and renunciation is selected when the liabilities outvalue the assets. However, it is sometimes difficult to accurately ascertain the assets and liabilities during the period for deciding whether to renounce an inheritance (in principle 3 months, although an extension is available upon application); for example, when the decedent is a director of a company and it is possible that they are the guarantor for the company’s debts. The process of qualified acceptance is available for this type of situation. Read the rest of this entry >