Inheriting Polish Debt: Should You Accept an Estate With an Unpaid Loan?

You find out that a deceased parent or relative has left behind an unpaid consumer loan, and the first instinct is: "I'll reject the inheritance so I don't take on the debt." That's a reasonable reflex — but before you file that statement, it's worth checking one thing: did the inherited loan agreement have defects that could trigger the free-credit sanction (sankcja kredytu darmowego, SKD)? If the lender breached its information duties when the agreement was signed, the estate's debt could genuinely be smaller than it looks — because the SKD reduces the borrower's obligation to repaying the capital alone, with no interest and no other charges. That doesn't mean you have time for a leisurely review, though: you only have 6 months from learning of the inheritance to reject it (Article 1015 § 1 of the Polish Civil Code), and that decision takes priority over any assessment of the free-credit sanction.

This article covers Polish law and estates opened in Poland. If you live in the UK, you can still handle this remotely — see below.

Disclaimer: This article is for general information only and is not legal advice. Every estate and every credit agreement needs individual assessment. Before deciding whether to accept or reject an inheritance, consult a Polish advocate (adwokat), legal counsel (radca prawny), or a civil-law notary (notariusz — a Polish public official with much broader powers than a UK notary public, who authenticates deeds and can also take inheritance declarations).

Loan debt as part of the estate — what you're liable for

A consumer loan taken out by the deceased is an ordinary estate debt — it enters the estate on the same footing as other liabilities (personal loans, tax arrears, credit card balances). How much of that debt you're liable for depends on how you accepted the inheritance:

• Outright acceptance — you're liable for the debt without limit, with your entire personal estate, even if the loan balance exceeds the value of what you inherited.
• Acceptance with the benefit of inventory (przyjęcie z dobrodziejstwem inwentarza) — you're liable only up to the value of the assets you inherited (the so-called net active estate).
• Silence for 6 months — since the 2015 reform, doing nothing within the deadline is treated as acceptance with the benefit of inventory, not outright acceptance as it used to be.
• Rejection — you inherit nothing, so the debt doesn't touch you; it passes to the next heir in line, or ultimately to the local municipality (gmina).

In other words: the mere fact that there's an unpaid loan in the estate doesn't automatically mean you have to reject the whole thing. Depending on how much is assets and how much is debt, and which form of acceptance you choose, your financial exposure can look very different.

Benefit of inventory, outright acceptance, rejection — three routes

You have three options, each with different consequences.

Outright acceptance. You take the whole estate — assets and liabilities — and you're liable for the loan debt with no upper limit. This only makes sense if you're confident the assets clearly outweigh the liabilities and you don't expect any hidden debts to surface later.

Acceptance with the benefit of inventory. You draw up (or the court arranges for) an inventory (spis inwentarza) — a list of the estate's assets and liabilities. Your liability for the loan and any other debts is capped at the value of what you inherited. If the debt is bigger than the assets, the lender only recovers a proportional share, and you don't have to top it up from your own pocket. This is the sensible option precisely in an uncertain situation — when you don't yet know whether the free-credit sanction will bring the debt down, but you don't want to risk liability beyond the value of the estate either.

Rejection. You give up the entire inheritance — you get nothing, but the debt doesn't touch you either. This is a last resort, sensible mainly when it's already clear the debts significantly outweigh the assets and there's nothing in the estate worth salvaging.

We cover the procedures and deadlines for these three options in more detail in "Accepting an estate — outright, with inventory, or rejection?" and "Debts in the estate — what to do when the inheritance is in the red?" (these companion articles are in Polish; (in Polish)).

Where the free-credit sanction fits in — can the debt actually be reduced

This is where a question comes up that many heirs overlook: was the loan you inherited along with its debt actually set up correctly in the first place?

The free-credit sanction (Article 45 of the Polish Consumer Credit Act of 12 May 2011) lets the borrower — and, in this situation, the heir who steps into the deceased borrower's rights and obligations — repay the lender the capital only, with no interest and no other costs, if the lender breached certain information duties when the agreement was concluded. A few hard conditions attach to this mechanism:

• it applies to consumer credit agreements concluded from 18 December 2011 onwards,
• it does not cover mortgage loans,
• the loan amount covered by the sanction is capped at PLN 255,550,
• the right must be exercised through a written declaration sent to the lender,
• the declaration must be filed within one year — calculated in line with Article 45(5) of the Act.

If the inherited loan meets these conditions and there was an error when it was set up (for example, in how the APR was calculated, in the agreement's mandatory content, or in how interest was charged on capitalised costs), the theoretical benefit is real: instead of the full amount plus interest and fees, the estate's debt shrinks to the bare capital. That can turn the estate's balance sheet from clearly negative to neutral, or even positive.

Whether an heir can actually exercise the Article 45 right after stepping into the shoes of the deceased borrower is — ⚠️ to be verified. This is the key legal question in this scenario and needs confirmation from a lawyer before you take any steps in this direction. Similarly, whether a particular agreement even qualifies for the free-credit sanction requires analysis of the deceased's actual loan documents — it's not something you can judge "by eye" without seeing the contract.

More on the mechanism itself: "The free-credit sanction — what it is and who can claim it" (in Polish).

Watch the inheritance deadlines — don't sit on the decision

This is the single most important point in this whole topic: the decision to accept or reject the inheritance has a hard, short deadline, and an SKD review doesn't extend it.

Under Article 1015 § 1 of the Civil Code you have 6 months from the day you learned you had been called to the inheritance to file a declaration of rejection, or of acceptance with the benefit of inventory. If you do nothing within that window, the law presumes you've accepted the inheritance with the benefit of inventory — which in practice caps your liability at the value of the estate, but doesn't excuse you from getting the inheritance paperwork sorted.

Since working out whether the loan qualifies for the free-credit sanction takes time — gathering the agreement, the repayment schedule, possibly a lawyer's opinion — and the inheritance deadline is short, securing your position in the probate process has to come first, ahead of waiting for the SKD analysis. In practice that means:

1. If you're not sure about the estate's balance sheet, consider accepting with the benefit of inventory — it limits your risk regardless of whether the free-credit sanction is ultimately confirmed, and it doesn't require waiting for the loan analysis first.
2. You can run the credit-agreement review for SKD purposes in parallel, once the inheritance deadline is secured — not instead of securing it.
3. If you do decide to reject the inheritance, do it with your eyes open: any potential benefit from the free-credit sanction would only apply if you accept the estate (since it's the heir who has to step into the agreement's rights and obligations before even considering an SKD declaration — that's the point flagged "⚠️ to be verified" above).

We cover the exact rules for calculating the 6-month deadline (when it starts running, what happens if you didn't find out straight away, what the consequences are of missing it) in "Rejecting an inheritance — how and when to do it" (in Polish).

Handling this remotely from the UK

If you live in the UK and the estate (and the loan) relate to assets in Poland, you can handle the inheritance formalities remotely:

• A declaration of acceptance with the benefit of inventory or of rejection can be filed before a Polish notary, or through a representative in Poland — you don't need to appear in court in person.
• A power of attorney for someone in Poland (family, or a lawyer) lets them secure the 6-month deadline on your behalf, without you needing to be physically present.
• The deceased's loan documents (the agreement, repayment schedule, any annexes) usually have to be obtained from the bank or lender in Poland — this can be instructed to a representative in parallel with the inheritance formalities.
• Remember that the inheritance deadline runs from when you actually learned about the inheritance — living abroad neither extends nor shortens it; what matters is the actual date you found out.

Frequently asked questions (FAQ)

Is it worth accepting an estate with debt if there's a chance of the free-credit sanction applying? It depends on the estate's balance sheet and on whether you actually have grounds to think the loan agreement has a defect that would justify the free-credit sanction. The safer option in an uncertain situation is accepting with the benefit of inventory — it limits your risk regardless of how the SKD analysis turns out, and you can run that analysis after the inheritance deadline is already secured.

Should I wait for the SKD analysis before making the inheritance decision? No. The deadline to reject the inheritance or accept it with the benefit of inventory is only 6 months from learning of the inheritance, and it is not extended because a credit-agreement review is under way. The inheritance decision has to be made within that window — the SKD analysis is a separate, later step.

Does the free-credit sanction reduce the estate's debt automatically? No. The free-credit sanction requires a written declaration to the lender and doesn't apply automatically by operation of law. Even if the agreement has a defect, the right has to be formally exercised — and whether an heir can do this in place of the deceased borrower needs a lawyer's confirmation (⚠️ to be verified).

Does every loan taken out by the deceased qualify for the free-credit sanction? No. The sanction applies to consumer credit agreements concluded from 18 December 2011 onwards, is capped at PLN 255,550, and does not cover mortgage loans. Whether a particular agreement has a defect that justifies the sanction requires analysis of the actual loan documents — it can't be established without seeing the contract.

What if I accept the estate outright and it later turns out the debt is bigger than I thought? With outright acceptance you're liable for the whole debt without limit, including from your own personal assets. That's exactly why, in an uncertain situation (such as waiting on an SKD review), accepting with the benefit of inventory is the safer route.

Related articles

• "Debts in the estate — what to do when the inheritance is in the red?" (in Polish) — which debts form part of the estate
• "Rejecting an inheritance — how and when to do it" (in Polish) — the 6-month deadline and procedure
• "The free-credit sanction — what it is and who can claim it" (in Polish) — the full SKD mechanism

Disclaimer

Twoja Sprawa is an information platform; we are not a law firm or a regulated lawyer, and we do not provide legal advice. Every estate and every credit agreement needs individual assessment by a court, a notary, or a regulated lawyer in Poland. This article is for general information only — it is not legal advice. If in doubt, consult a regulated professional.

Sources

• Article 1015 of the Polish Civil Code (deadline for rejecting an inheritance) — https://isap.sejm.gov.pl/isap.nsf/DocDetails.xsp?id=WDU19640160093
• Articles 1012, 1030–1034 of the Polish Civil Code (acceptance of an estate, liability for debts) — https://isap.sejm.gov.pl/isap.nsf/DocDetails.xsp?id=WDU19640160093
• Article 45 of the Consumer Credit Act of 12 May 2011 (free-credit sanction) — https://isap.sejm.gov.pl/isap.nsf/DocDetails.xsp?id=WDU20111260715