The lease contract in succession

The lease contract in succession

"My mother has just died and I'm the sole heir. I'd like to keep her lease. But since she had a debt of 5,000 francs, I don't want to accept her inheritance, so my question is: how do I go about refusing the inheritance? If I refuse the succession, can I still keep the lease?

Thierry, Geneva

Under the Civil Code, heirs acquire the entire estate by operation of law as soon as it is opened. They are seized of claims and actions, property rights and other real rights. They do not need to take any steps to jointly acquire the assets and liabilities of the estate.

If you do nothing and as the sole heir, you will not only own the lease, but will also be liable for the debt of CHF 5,000.

Under article 566 of the Civil Code, legal or instituted heirs may repudiate the estate. Renunciation must be made by a written or verbal declaration by the heir to the competent authority. It must be made without condition or reservation and within three months of the day on which the legal heirs became aware of the death. After this period, heirs who have not repudiated acquire the estate purely and simply.

The competent authority is that of the deceased's last place of residence. In Geneva, the Justice of the Peace has jurisdiction in this matter. This procedure is free of charge. Repudiation has the effect of releasing the heir and interrupting the transfer of the deceased's assets. The heir who repudiates the estate no longer has any rights to the assets and is no longer liable for the deceased's debts. They are no longer part of the heirs. The estate repudiated by all the legal heirs in the next rank is liquidated by the bankruptcy office.

However, under article 266 i of the Swiss Code of Obligations, in the event of the tenant's death, his heirs may terminate the lease by observing the statutory notice period for the next legal term, which is normally three months to the end of a lease term. In other words, the lease does not automatically terminate on the death of the tenant, but the heirs have the option of terminating the lease earlier than provided for in the contract.

However, if the heirs repudiate the estate, the lease is taken over by the bankruptcy office, which decides whether to assume or terminate the contract.

It follows that if you decide to repudiate your late mother's estate, you will lose the right to choose whether or not to terminate the lease.