civil law
Article 1 16 1?
The heir shall pay off the taxes and debts payable by the decedent according to law within the limit of the actual value of the estate obtained. If it exceeds the actual value of the estate, the heir will voluntarily repay it.
If the heir renounces inheritance, he may not be liable for paying off the taxes and debts that the decedent should pay according to law.
Personal debt repayment order
1. Priority creditor's rights are the first payment order. The so-called priority creditor's right refers to the creditor's right that enjoys the mortgage, pledge and lien on the estate. The person who enjoys this right is the priority person. The effectiveness of this priority creditor's right should not be affected by inheritance. Should be paid off before ordinary creditor's rights. However, the priority beneficiary who enjoys this special guarantee does not enjoy the priority of the whole estate. If the secured property or right is insufficient to pay off its debts, the insufficient part shall still be paid off in the same order as the ordinary creditor's rights.
2. Ordinary creditor's rights are the second repayment order. Ordinary creditor's rights are relative to priority creditor's rights. In the liquidation of inherited debts, priority creditor's rights should be paid off first. After the priority creditor's rights are paid off, the ordinary creditor's rights will be paid off. The repayment of ordinary creditor's rights shall be limited to what the heir already knows (including what the creditor has reported). Of course, the creditor's rights that the heirs don't know can't be paid off. For debts that have not yet reached the liquidation period, they should also be paid off at the time of liquidation, so as not to delay the liquidation of the entire estate debt. As for the repayment of conditional unfulfilled creditor's rights, the situation is complicated and cannot be generalized. The heir and the creditor shall negotiate, or request the people's court for evaluation or an appraiser for evaluation according to the specific circumstances.
If the decedent's estate is insufficient to pay off the known ordinary creditor's rights after paying off the priority creditor's rights, the ordinary creditor's rights shall be paid off separately according to the principle of fairness.
3. Delivery of inheritance is the third order. The execution of bequest shall not hinder the settlement of taxes and debts payable by the legatee according to law. In other words, paying taxes and paying debts ranks first, and delivering inheritance ranks last. After the priority creditor's rights and ordinary creditor's rights are paid off, if there is still surplus, the legacy can be delivered.