One of the most important changes introduced by Law 5303/2026 in the field of inheritance law concerns an heir’s liability for estate debts.
Until now, an heir accepting an estate without the benefit of inventory was liable for the estate’s obligations not only out of estate assets but also out of their own assets. To limit liability to the value of the estate, the heir generally had to accept the inheritance subject to the benefit of inventory and comply with the applicable time limits and formalities.
For the estates of persons who die on or after 16 September 2026, this rule is reversed. Under new Article 1892 of the Greek Civil Code, an heir is not, as a rule, liable out of their personal assets for the obligations of the estate.
This does not mean that the deceased’s debts are written off. Creditors may still seek payment from estate assets. Nor is the protection of the heir’s personal assets absolute: it may be lost if the heir opts for the free administration and disposal of the estate or acts in breach of the restrictions imposed by the new Law.
The critical issue, therefore, is not whether the debts continue to burden the estate, but when creditors may also proceed against the heir’s personal assets.
What Was the Position on Estate Debts under the Previous Law?
Under former Article 1901 of the Greek Civil Code, an heir accepting an estate without the benefit of inventory was also liable for its obligations out of their own assets.
To protect their personal assets, an heir could, while retaining the right to renounce the inheritance, declare that they accepted it subject to the benefit of inventory. In that case, liability was limited to the value of the estate, provided that the heir complied with the prescribed time limits and duties of administration.
Failure to complete the inventory within the applicable time limit, the deliberate preparation of an inaccurate inventory, fraud in the administration of the estate, or the disposal of certain estate assets without court authorisation could result in the loss of the benefit of inventory.
What Is the New Rule?
New Article 1892 of the Greek Civil Code provides that an heir is not liable out of their personal assets for the obligations of the estate unless the heir:
files a declaration with the registrar of the court having jurisdiction over the estate stating that they will freely administer and dispose of the estate; or
falls within one of the cases of extended liability provided for in Article 1895 of the Greek Civil Code.
This special declaration should not be confused with acceptance of the inheritance. The estate passes to the heir automatically, subject to the right of renunciation, whereas the declaration under Article 1892 is a separate election by the heir to assume the free administration and disposal of estate assets.
This election gives the heir greater freedom, but it also extends liability to the heir’s personal assets. It should therefore not be made before the estate’s assets, debts and outstanding obligations have been fully ascertained.
Are the Deceased’s Debts Written Off?
No. Law 5303/2026 neither discharges nor reduces the deceased’s debts.
Creditors’ claims continue to exist and may be satisfied out of estate assets. The change concerns the extent of the heir’s liability and, in particular, whether creditors may also proceed against assets that already belonged to the heir and do not form part of the estate.
For example, if an estate comprises assets worth EUR 100,000 and debts of EUR 180,000, the heir will not, as a rule, be liable for the EUR 80,000 shortfall out of their personal bank deposits or other personal assets. This assumes that the heir has not filed the declaration of free administration and has not acted in a manner that triggers any of the exceptions under Article 1895 of the Greek Civil Code.
When Can an Heir Become Personally Liable for Estate Debts?
When the Heir Opts for Free Administration and Disposal
An heir may file a declaration with the registrar of the court having jurisdiction over the estate stating that they will freely administer and dispose of the estate.
Once this declaration is filed, the limitation of liability to estate assets ceases to apply. This is therefore an election with particularly significant consequences, especially where the true extent of the estate’s debts has not yet been established.
When the Heir Disposes of Estate Assets without Court Authorisation
Before a decision ordering the court-supervised liquidation of the estate has been issued, an heir is not, as a rule, entitled to dispose of estate assets without court authorisation.
Authorisation may be granted for a compelling reason relating to the life or health of:
the heir;
the heir’s spouse;
the heir’s parents; or
the heir’s children.
This restriction does not apply if the heir has already filed the declaration of free administration under Article 1892 of the Greek Civil Code, in which case, however, the heir is also liable out of their personal assets.
If the heir disposes of an estate asset in breach of these restrictions, the heir may become liable for the estate’s obligations out of their personal assets. In addition, the transaction is void as against estate creditors to the extent that it prevents satisfaction of their claims.
When the Value of the Estate Is Reduced through the Heir’s Fault
If the value of the estate is reduced through the heir’s fault, creditors’ claims may also be satisfied out of the heir’s personal assets.
The protection afforded to an heir is therefore accompanied by a duty to administer the estate prudently and preserve the value of estate assets.
When the Heir Fails to Observe the Statutory Order of Priority
The claims of the deceased’s creditors and of persons entitled to a forced share must be satisfied before:
legacies;
testamentary charges; and
gifts made in contemplation of death.
If the heir fails to observe this order of priority, the heir is also liable out of their personal assets for satisfying the claims of any omitted creditors of the deceased.
For example, payment of a pecuniary legacy before a known debt of the deceased has been discharged may result in the heir’s personal liability if the creditor is left unpaid.
What Can an Heir Do without Losing the Protection?
An heir is not deprived of every ability to administer the estate.
The Law allows an heir to:
collect income and other benefits generated by the estate, such as rent or other fruits;
use estate capital to satisfy estate creditors; and
pay the necessary costs of maintaining estate assets.
By contrast, the sale, gift or other disposal of an estate asset requires prior assessment. Before taking any such action, it is necessary to determine whether court authorisation is required and what consequences may arise for the heir’s personal liability.
What Is Court-Supervised Liquidation of an Estate?
Under new Article 1893 of the Greek Civil Code, the court having jurisdiction over the estate may, at any time and on the application of any person with a legal interest, order the court-supervised liquidation of the estate. Liquidation may be ordered even where the estate is vacant.
Upon publication of the decision ordering liquidation, the estate’s rights and obligations are automatically separated from the heir’s personal assets and form a distinct pool administered by the liquidator.
The liquidator must be a lawyer included in a special register maintained by the court having jurisdiction over the estate and must satisfy the requirements of Article 1896 of the Greek Civil Code.
The liquidator:
takes possession of and records the estate assets;
invites creditors to lodge their claims;
verifies the claims lodged;
completes the inventory of the estate and prepares the relevant report;
collects sums owed to the deceased;
liquidates some or all of the estate assets, where necessary; and
prepares a schedule of priority for the payment of creditors.
Creditors who consider that they have a claim against the estate must lodge it with the liquidator within six months of the final publication of the relevant invitation. The notice of claim must describe the claim, be accompanied by the supporting documents and be signed by a lawyer.
If the proceeds of the liquidation are insufficient to satisfy all creditors in full, the liquidator prepares a schedule of priority in accordance with the Law.
What Happens If the Heir Is a Minor?
Law 5303/2026 lays down special rules for an estate devolving to a minor child.
The parents may file the declaration of free administration under Article 1892 of the Greek Civil Code only with court authorisation. For authorisation to be granted:
they must declare that they will be jointly and severally liable with the child for the obligations of the estate; and
the value of their assets must equal or exceed the value of the child’s personal assets at the time the application is filed.
Filing the declaration does not extend the minor’s liability to the minor’s personal assets.
If the parents do not file the declaration or obtain the required authorisation, they are liable out of their own assets to estate creditors if they dispose of estate assets. They are also liable if the value of the estate is reduced as a result of improper administration attributable to their wilful misconduct or gross negligence.
Can an Inheritance Still Be Renounced?
Yes. Law 5303/2026 does not abolish the right to renounce an inheritance.
As a rule, the period for renunciation remains four months from the date on which the heir became aware that the estate had devolved to them and of the basis for that devolution. If the deceased had their last residence abroad, or the heir was residing abroad when the period began, the period is one year.
Where the estate devolves under a testamentary disposition, the period does not begin before that disposition has been published.
The existence of debts, however, no longer means in itself that renunciation is the only safe option. Renunciation excludes the heir from the estate entirely. If the heir retains that status, their personal assets are protected as a rule, but the heir must comply with the statutory restrictions on the administration and disposal of estate assets.
What Applies to Deaths before 16 September 2026?
The new general rule protecting an heir’s personal assets applies to the estates of persons who die on or after 16 September 2026.
For deaths occurring before that date, the previous regime continues to apply as a rule.
The Law nevertheless provides a special transitional option for the heir of a person who died on or before the publication of Law 5303/2026, i.e. on or before 22 May 2026, where the heir did not make a timely declaration accepting the inheritance subject to the benefit of inventory.
Within six months of the publication of the Law, such an heir may, under Article 838 of the Greek Code of Civil Procedure, apply for the appointment of a judicial bailiff and experts to conduct an inventory of the estate, provided that, at the time the application is filed:
no enforcement measure has been taken against the heir’s personal assets; and
there is no ground for forfeiture of the benefit of inventory.
In all other respects, Articles 1903 to 1911 of the Greek Civil Code under the previous regime apply.
This provision does not automatically apply to every older estate. It applies only where the specific conditions of the transitional provision are met and does not result in the entire new liability regime applying to deaths that occurred before 16 September 2026.
Examples of How the New Regime Applies
Estate with Debts Exceeding Its Assets
The deceased dies in October 2026. The estate comprises a property worth EUR 120,000 and total debts of EUR 200,000.
Provided that the heir does not file the declaration of free administration and does not breach the rules in Article 1895 of the Greek Civil Code, creditors may seek satisfaction out of estate assets, but not out of assets that already belonged to the heir.
Sale of an Estate Property without Court Authorisation
The heir sells a property belonging to the estate without the required court authorisation and without having filed the declaration under Article 1892 of the Greek Civil Code.
This may result in the heir becoming liable out of their personal assets. At the same time, the sale is void as against estate creditors to the extent that it prevents satisfaction of their claims.
Payment of a Legacy before Estate Creditors
The heir pays a pecuniary legacy while obligations of the deceased remain outstanding.
If a creditor of the deceased remains unpaid as a result of that payment, the heir may also be liable to that creditor out of their personal assets.
What Should an Heir Check before Taking Any Action?
Before making any declaration, renouncing the inheritance, selling an asset, making a payment or carrying out any other act of administration, the following should be examined in particular:
the exact date of death;
the basis of the succession;
the existence and content of any testamentary disposition;
the full extent of the estate’s assets;
all bank, tax and private debts;
any security interests and pending litigation;
the deadline for renunciation;
any acts of administration already carried out; and
whether an application for court-supervised liquidation would be appropriate.
Particular care is required before selling an estate asset or paying a legacy. A premature act of disposal or payment may materially alter the extent of the heir’s liability.
Frequently Asked Questions about Estate Debts
Does an Heir Inherit the Debts as Well?
The deceased’s obligations form part of the estate and are not discharged by death. For deaths occurring on or after 16 September 2026, however, an heir is not, as a rule, liable out of their personal assets unless one of the statutory exceptions applies.
Does Accepting an Inheritance Mean That I Assume All Debts Personally?
No, provided that the new regime applies. Acceptance of the inheritance is not the same as the special declaration of free administration and disposal under Article 1892 of the Greek Civil Code.
Can Estate Creditors Seize Real Estate That I Already Own?
For deaths occurring on or after 16 September 2026, estate creditors may not, as a rule, proceed against real estate that already belonged to the heir and does not form part of the estate. This may change if the heir files the declaration of free administration or a case of personal liability under Article 1895 of the Greek Civil Code arises.
Can I Sell an Estate Property Immediately?
Not without prior legal review. The disposal of an estate asset may require court authorisation and, if carried out in breach of the Law, may result in the heir becoming personally liable.
Is the Benefit of Inventory Abolished?
For the estates of persons who die on or after 16 September 2026, protection of the heir’s personal assets no longer depends on acceptance subject to the benefit of inventory, but follows from the new rule in Article 1892 of the Greek Civil Code.
For earlier deaths, the previous regime continues to apply, subject to the specific transitional provisions.
When Does the New Rule Take Effect?
The new rule on liability applies to the estates of persons who die on or after 16 September 2026.
Conclusion
Law 5303/2026 substantially changes an heir’s liability for estate debts. The heir’s personal assets are now protected as a rule, but this does not mean that the debts are written off or that the heir may freely administer and dispose of estate assets.
The date of death, the condition of the estate and the heir’s own actions are decisive in determining the extent of liability. For this reason, before accepting or renouncing an inheritance, selling an asset or making a payment, a full review of the estate’s assets and debts and of the legal regime applicable to the particular estate should be carried out.
This article is provided for general information only and does not constitute legal advice. Each case requires an individual assessment based on its particular facts and the legal framework in force. For specialist advice, please contact our law firm.
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