A Legislative Suggestion on an Heir’s Qualified Acceptance of Succession, Separation of Inherited Property, and Bankruptcy Procedure for Inherited Property
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A legislative suggestion on an heir’s qualified acceptance of succession, separation of inherited property, and bankruptcy procedure for inherited property. In this article, I review the legislation on an heir’s qualified acceptance of succession, separation of inherited property, bankruptcy procedure for inherited property. The current Korean system has the following problems. (i) It is difficult for the heir to identify the inheritance debt before choosing whether to inherit and how to inherit. (ii) There are not so many options for an heir to exercise. (iii) The separation of the inherited property and the heir’s property is not symmetrical and thorough. (iv) The liquidation of inherited property according to the heir’s qualified acceptance of succession has several problems, in terms of both efficiency and equity. To solve these problems, I suggest the following amendments: First, a public inventory system should be created to help the heir identify the inheritance debt before choosing the inheritance form. This system can also increase the heir’s options. Second, the heir’s qualified acceptance of succession and separation of inherited property should be integrated to create a new liquidation system for inherited property, in which a third-party liquidator separates and liquidates only the inherited property when it is not over-indebted. Third, if the inherited property is over-indebted, the liquidation process should be unified into the bankruptcy procedure. Fourth, the deficiencies in the current bankruptcy procedure for inherited property should be improved by giving the creditors of the heir the right to file for bankruptcy, establishing a simple and inexpensive bankruptcy procedure, and recognizing the effect of separation of two properties (the inherited property and the heir’s own property) fully and automatically. Fifth, during the period in which the heir can exercise his or her option for the inheritance, the inheritance creditors should be prohibited from acquiring the execution title against the heir, and the execution of the heir’s creditors against the inherited property should also be prohibited. A preservative measure for inheritance creditors and the heir’s creditors, however, should be allowed.
Abstract
A legislative suggestion on an heir’s qualified acceptance of succession, separation of inherited property, and bankruptcy procedure for inherited property. In this article, I review the legislation on an heir’s qualified acceptance of succession, separation of inherited property, bankruptcy procedure for inherited property. The current Korean system has the following problems. (i) It is difficult for the heir to identify the inheritance debt before choosing whether to inherit and how to inherit. (ii) There are not so many options for an heir to exercise. (iii) The separation of the inherited property and the heir’s property is not symmetrical and thorough. (iv) The liquidation of inherited property according to the heir’s qualified acceptance of succession has several problems, in terms of both efficiency and equity. To solve these problems, I suggest the following amendments: First, a public inventory system should be created to help the heir identify the inheritance debt before choosing the inheritance form. This system can also increase the heir’s options. Second, the heir’s qualified acceptance of succession and separation of inherited property should be integrated to create a new liquidation system for inherited property, in which a third-party liquidator separates and liquidates only the inherited property when it is not over-indebted. Third, if the inherited property is over-indebted, the liquidation process should be unified into the bankruptcy procedure. Fourth, the deficiencies in the current bankruptcy procedure for inherited property should be improved by giving the creditors of the heir the right to file for bankruptcy, establishing a simple and inexpensive bankruptcy procedure, and recognizing the effect of separation of two properties (the inherited property and the heir’s own property) fully and automatically. Fifth, during the period in which the heir can exercise his or her option for the inheritance, the inheritance creditors should be prohibited from acquiring the execution title against the heir, and the execution of the heir’s creditors against the inherited property should also be prohibited. A preservative measure for inheritance creditors and the heir’s creditors, however, should be allowed.
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