In debt after inheritance: ‘Instantly I had this on my plate’

• Actual police

  Economics Editor

The Tax Authorities and the Social Insurance coverage Financial institution make heirs pay for money owed they inherit from dad and mom, even when they solely inherit money owed. Different authorities entities, equivalent to a number of cities, actually do not do that.

Mrs. Hous from Amsterdam owes such a debt. Her mom died in April 2020. Two years later she obtained a letter from the Social Insurance coverage Financial institution (SVB). Her mom had obtained an excessive amount of pension for years so she had constructed up 1000’s of euros in debt to the SVB.

The SVB desires that cash again from Home. Even her incapacity advantages have now been seized. “We will nonetheless make ends meet,” Hous stated. “However I could not rejoice my sixty fifth birthday. There wasn’t sufficient cash.”

Anybody who accepts an property stuffed with debt in good religion should repay that debt to the SVB. Even when the debt is greater than the property that somebody owns, as occurred with Mrs. Hous.

“I grew up with my grandmother, I did not have an excellent relationship with my mom,” stated Hous. “Earlier than she died, I visited the nursing house a number of occasions. I used to be additionally there on her final day.” However she knew nothing about her mom’s guilt.

Hos isn’t certain how she took the blame. “It is too difficult. Abruptly I bought this on my plate with out even ordering it. I am unhappy.”

Home was not the one one left with such inheritance money owed. In 2023, the SVB knocked on the door of greater than 19,000 heirs to gather cash. It needs to be famous that solely in 93 of those instances did the debt come up earlier than demise. The opposite money owed arose as a result of the SVB had unbeknownst to them continued to pay the advantages after the demise.

“We will typically offset the debt with vacation pay or the attainable one-off demise profit (within the case of AOW),” stated a spokesman. -if this isn’t attainable or if it isn’t fully profitable, a fee association can be agreed with the heirs, the place reimbursement could be made in installments. Income seize is the final step for the SVB.”

The Tax Authorities – the most important creditor within the Netherlands – additionally discuss to surviving relations to settle the tax debt of a deceased dad or mum. Even when the debt is greater than the asset. The service has no figures on how typically this occurs.

“The principle rule is that each money owed and property go to the heirs,” stated a spokesman. “This additionally applies to tax money owed.”

However that’s not self-evident. There are additionally authorities businesses that deviate from that fundamental rule.

This is applicable, for instance, to the town of Amsterdam. An property should still embrace unpaid council tax. If it seems that there isn’t any risk to pay these taxes from the property, the town will rub its hand over its coronary heart.

“If in case you have ‘simply’ accepted the property and there seems to be no property or solely money owed and you may show this with a duplicate of the stock, your money owed will nonetheless be waived,” stated a spokesman.

One thing comparable is the rule in Rotterdam as properly. Final yr, 525 tax assessments have been waived from roughly 65 deceased individuals.

The Social Insurance coverage Financial institution says that cities have extra coverage area, as they acquire their very own taxes.