After Discovering Her Late Father’s Estate... Hit by a “Debt Bomb” of Loans and Damages Lawsuits

"You must clearly identify the deceased’s assets and liabilities"

"Renunciation or limited liability inheritance is possible within three months"

A story has been reported about a woman who expected to inherit her father's property after his passing, only to discover unexpected debts and a damages lawsuit belatedly.

On September 4, YTN Radio’s "Attorney Inseop Cho’s Counseling Center" shared the case of Ms. A, who faced debt issues left behind by her late father. Ms. A explained that her father had a unilateral personality and made decisions on both major and minor matters without consulting the family.

Recently, after her father’s passing, Ms. A, who had stayed by her parents’ side, was solely gifted a plot of forest land in a rural area. In addition, her father left behind a small apartment in Suwon, Gyeonggi Province, and some savings. The heirs included Ms. A, her mother, and a younger brother with whom contact had been lost long ago—a total of three people.

Inheritance of Property. Photo is not related to any specific expressions in the article. Photo by Yonhap News

The problem was that her father had acted as a guarantor for a relative while he was alive and had substantial personal debts, none of which he had disclosed. It was not long before creditors began calling Ms. A to demand repayment.

It was also discovered only after the fact that her father had been sued for a large sum in a damages claim for allegedly causing harm to another person's property a few months before his death. After confirming Ms. A’s father’s passing, the plaintiff began procedures to continue the lawsuit against the heirs. Ms. A voiced her concern that the debts her family would inherit might exceed the assets.

Upon hearing Ms. A’s case, attorney Junheon Lee advised, “First, you need to use the ‘One-stop Safe Inheritance Service’ to accurately identify the extent of the deceased’s assets and liabilities.” If it turns out the debts outweigh the assets, heirs may apply to renounce or accept the inheritance with limited liability within three months from the date they become aware of the commencement of inheritance. Limited liability inheritance requires heirs to repay the deceased’s debts only up to the value of the inherited assets.

Attorney Lee further explained, “The forest land gifted to Ms. A during her father’s lifetime may be included in the calculation of her ‘special benefit’ inheritance share,” adding, “Regarding the ongoing damages lawsuit, if limited liability inheritance is chosen, the heirs will, as a rule, only be liable within the scope of the inherited property.”

This content was produced with the assistance of AI translation services.