When heirs are in financial difficulties - a will for the needy prevents third parties from accessing the inheritance

Many people want to leave something of value to their descendants so that they will be better off later. However, if the heirs are in debt, insolvent or receiving social welfare, worried parents often turn to a notary. A so-called indigent will with execution of the will and prior and subsequent inheritance can prevent creditors from gaining access to the estate. To this end, the will must always be tailored precisely to the individual case.

People in need must use inherited assets

If people who are involved in personal insolvency proceedings, are heavily indebted or are dependent on social welfare benefits such as citizen's allowance - formerly ALG II - inherit assets, they must use them. In the case of social assistance, for example, this means that benefits can be discontinued and the social assistance provider can assert claims from benefits previously provided. This also applies, within certain limits, if it is not the heir who receives benefits but only their partner and both form a community of need.

Creditors without access

The aim of a will for the needy is to allow the heir in financial need to share in the estate without third parties having access. There is often a wish for the assets to remain in the family even after the death of the needy person. In order to achieve this, the future testator can stipulate in his or her will that the needy person should inherit before and after death with permanent execution of the will. The needy or over-indebted heir is appointed as a non-exempt prior heir and has no direct access to the assets. Instead, an executor regularly makes financial resources available to the pre-heir from the inheritance, the amount of which is based on the seizure exemption limits. Creditors cannot assert any financial claims. If the previous heir dies, the remaining assets pass to the subsequent heir.

Always tailored to the individual case

The choice of executor and subsequent heir should be carefully considered. The heir in need must be able to cope with the at least partial paternalism of the executor. The future testators can also make provision in the will for the event that the financial situation of the needy heir improves again. The executor can be specified whether, when and under what circumstances the heir in need will have unrestricted access to his or her share of the inheritance. In order to do justice to each individual case, a will for the needy should be drawn up individually and with the support of a notary.

Disinheritance is not a solution

If testators have not made special provisions in their will and have instead excluded the needy person from the succession, the next of kin, such as children and spouses, are entitled to a compulsory portion amounting to half of the statutory inheritance share. Social welfare agencies can take these claims and assert them. Even creditors in ongoing insolvency proceedings or individual enforcement proceedings only have no access if the heir does not realize the compulsory portion. If, on the other hand, the needy person rejects the inheritance in order to prevent claims by the social welfare provider, this may be immoral and legally invalid.

You can find further news at https://ratgeber-notar.de/.