Blog, Inheritance

Can I renounce my inheritance? The answer is yes, but you must make a quick decision: the time limit is only 3 months. 

First, why would you not want your inheritance in Korea? The reason might be simple. When you inherit a person, you must inherit their liabilities too. Thus, if the dear departed has more debt than their property, then it might be better for you to not inherit them at all. 

The problem is that usually, you do not know exactly how much the property and the debt the dear departed had made. Especially in the case of a sudden accident, it is almost impossible to expect the properties to be settled neatly. Therefore, to inherit or not to inherit, becomes a frequently asked question. 

We will discuss more details – how-to and other relating issues – about the renouncement by reviewing frequently asked questions.

How Can I Renounce Inheritance in Korea?

Civil Act Article 1041 (Method of Renunciation)

If an inheritor to property effects a renunciation of an inheritance, he shall make a declaration of renunciation to the Family Court within the period mentioned in Article 1019 (1). <Amended on Jan. 13, 1990>

Article 1019 (Period for Acceptance and Renunciation)   

(1) An inheritor to property may, within three months after he is informed of the commencement of an inheritance, effect an acceptance, absolute or qualified, or a renunciation: Provided, That such period may be extended by the Family Court upon the application of any party interested or of a public prosecutor. <Amended on Jan. 13, 1990>

Family Litigation Act Article 36 (Mode of Request)

(3) The following matters shall be indicated in a written request for adjudication, and the applicant or representative thereof shall affix his or her name and seal or sign thereon: <Amended on Jan. 19, 2016>

1. 1. 1. Standard place of registration, address, name and date of birth of the party concerned, and if requested by a representative, the address and name of the representative;
      2. Purport and cause of the request;
      3. Date the claim is filed;
      4. Indication of the family court.

Regulation on Family Litigation Article 75

(1) Renouncement or qualified acceptance of inheritance declaration shall be submitted by a written document with an autograph by the declarant or a representative along with matters below in addition to the subjects stipulated by the Family Litigation Act Article 36 (3) 

1. 1. 1. Name and the last address of the inheritee
      2. The relation between the inheritee and the inheritor
      3. Date of recognition of commencement of inheritance
         1. Declaration of renouncement or qualified acceptance. 

To renounce inheritance, you must declare your purport of renouncement to the family court. It should be in a form of a written document, either by yourself or your representative. Requirements are the documents stipulated in the Family Litigation Act Article 36 (3) and Regulation on Family Litigation Article 75 (1), which would be the name of the declarant and the inheritee, purport, cause, etc. 

Until When Can I Renounce Inheritance in Korea? 

Article 1019 (Period for Acceptance and Renunciation)   

(1) An inheritor to property may, within three months after he is informed of the commencement of an inheritance, effect an acceptance, absolute or qualified, or a renunciation: Provided, That such period may be extended by the Family Court upon the application of any party interested or of a public prosecutor. <Amended on Jan. 13, 1990>

Article 1026 (Absolute Acceptance by Law)

An inheritor shall be deemed to have effected an absolute acceptance in any of the following cases: <Amended on Jan. 14, 2002>

1. 1. 2. If an inheritor has failed to effect either a qualified acceptance or a renunciation within the period mentioned in Article 1019 (1);

According to Article 1019, within three months after the inheritor is informed of the commencement of an inheritance, the inheritor must declare the intention of renunciation. If you do not, as the effect of Article 1026 (Absolute Acceptance by Law), you shall be deemed to have absolute acceptance of the inheritance. This means you will inherit all the property and the liabilities of the deceased, within your share of inheritance.

I Didn’t know The Inheritee Deceased. Can I Renounce The Inheritance Now?

The answer is yes. The three months of time limit commences when you are informed of the commencement of an inheritance (Article 1019), which means that day you came to know that the inheritee had passed away. Therefore, even if you have learned the fact the deceased had passed away very belatedly, if it is still within the 3 months period of “your” recognition, it is okay to renounce your inheritance.

Can I Renounce After Three Months of Time Limit? 

Basically no, but yes in some exceptional cases.

The first is the case falling under Article 1019 (3).

Article 1019 (Period for Acceptance and Renunciation)

(3) Notwithstanding the provisions of paragraph (1), where an inheritor has made an absolute acceptance (including the case deemed to have made an absolute acceptance under subparagraphs 1 and 2 of Article 1026) without knowing the fact that his inherited liability exceeds his inherited property within the period under paragraph (1) without any gross negligence, a qualified acceptance may be made within three months from the date on which he knew such fact. <Newly Inserted on Jan. 14, 2002>

Article 1019 (3) allows some exceptional cases for belated renunciation of inheritance. When you already have made an absolute acceptance or have been deemed to have made an absolute acceptance, you cannot manifest your will of renouncement. However, if you did not know that the liability of the deceased exceeds the property without any gross negligence, you can renounce inheritance from the date on which you knew such fact. 

The key point is that you must prove your ignorance of such fact and your ignorance without any gross negligence. This means that you must not be blamed for not knowing that the liability of the inheritee exceeds the property. It would not be an easy task, but not impossible. There are cases where the court granted the belated renunciation, such as when the inheritor became estranged from the deceased long ago and has been living far apart.

The second case is the case falling under Article 1021. 

Article 1021 (Special Rule Governing Calculation of Period for Acceptance or Renunciation)

Where an inheritor dies without effecting either acceptance or renunciation within the period mentioned in Article 1019 (1), the period mentioned in Article 1019 (1) shall be calculated from the time when his inheritor becomes aware that the inheritance has been commenced in his favor.

This is a very specific case of inheritance, so it is hard to generalize; let’s say that your grandfather (or grandmother) and your father die consecutively within 3 months. When your grandfather dies, your father gets to inherit him and holds the right to renounce in 3 months starting from the day your father acknowledges the death of your grandfather. When your father also dies within 3 months from the death of your grandfather and yet not had decided whether to inherit nor renounce, then you get to inherit the right of your father to inherit and renounce your grandfather.

What Happens To My Child When I Renounce? 

When you renounce inheritance, then your children become potential inheritors, depending on the specific details. 

For example, suppose your father is deceased. You have a sibling, and you renounced the inheritance. Your children still are one of the inheritors, but your sibling will have the priority over your children to the inheritance (as your sibling is closer than your children are to your father). Nonetheless, in case your sibling also renounces, or you do not have any other sibling, then your children become the closest inheritors among the 1st rank inheritors. Then, your children will inherit your father’s properties and liabilities. You may have dodged away from your father’s debts, but it has been passed to your children. To avoid this unwelcomed consequence, you must remember that your children must renounce the inheritance too. 

Can I Cancel The Renouncement (or Acceptance)?

Article 1024 (Prohibition of Revocation of Acceptance or Renunciation)

(1) Acceptance or renunciation of inheritance may not be revoked even within the period mentioned in Article 1019 (1). <Amended on Jan. 13, 1990>

(2) The provisions of paragraph (1) shall not affect the voidance in accordance with the provisions of Part I, General Provisions: Provided, That such right of voidance shall be extinguished by prescription, if it is not exercised within three months from the day on which it became possible to effect ratification, or within one year from the day on which acceptance or renunciation was effected.

Basically no, but sometimes yes.

This one is a hard legal question. “Basically no, but sometimes yes” is the best answer we can provide here. According to Article 1024 (1), you cannot revoke your decision regarding acceptance or renunciation of inheritance. This regulation is to prevent confusion and turmoil that may be caused by the revocation.

However, as stipulated in Article 1024 (2), by the effect of the provisions Part I General Provision of Civil Act, you can revoke your declaration. These would be cases of Articles 103 (Juristic Acts Contrary to Social Order), Article 104 (Unfair Juristic Act), Article 107 (Declaration of Untrue Intention), Article 108 (Fictitious Declaration of Intention in Collusion), Article 109 (Declaration of Intention under Mistake), Article 110 (Declaration of Intention by Fraud or Duress), etc. We are not going the discuss the specific grounds for nullification or voidability. However, what you should remember here is that you must exercise your right in 3 months from the day which it became possible to effect ratification, or within one year from the day on which acceptance or renunciation was affected. This is the last chance for you to revoke your acceptance or renunciation. 

Conclusion

To avoid inheritance liabilities being dumped over to you, you must be aware of the rule of renunciation. Within three months of the period, you can decide whether to accept or renounce the inheritance. If you do not make any decision, you will be deemed to have accepted the inheritance. Fortunately, there are certain exceptional rules that would relieve your burden, but exceptions are always delicate and hard to satisfy, so it is better to keep your eyes on when the inheritance commences. There also is another system that let you be free from the liabilities from your ascendants – the limited approval, which will be the next article we will be presenting. 

Inheritance is always a delicate and mind-consuming task. Seoul Law Group has various experiences and expertise regarding the inheritance issue. Do not hesitate to contact us.