Public inventory: an interim option for uncertain heirs

Besides accepting or renouncing an inheritance, there is a third option: the public inventory (öffentliches Inventar). It is used much less often than would be useful.

A public inventory is suitable when there are assets, such as an owner-occupied flat, an investment portfolio or cash, but possible debts are unclear. These may include guarantees, additional tax demands or loans. Renunciation would be regrettable, while acceptance would be risky.

What a public inventory does

The competent authority draws up an official list of the estate’s assets and liabilities. Through the public notice to creditors (Rechnungsruf), creditors and debtors are publicly invited to declare their claims and debts within a specified period.

Once the process is complete, the assets and debts have been reliably recorded. You can accept the inheritance subject to the public inventory. You are then generally liable only for the debts listed in the inventory. As a rule, you are not liable for claims that were not declared despite the public notice.

This provides protection against exactly what heirs fear: a bill that nobody knew about arriving two years later.

The one-month deadline is the key issue

A public inventory must be requested within one month of learning of the death. This deadline is therefore considerably shorter than the three months allowed for renunciation.

This deadline is easily missed. During the first month after a death, relatives are occupied with the funeral, dealings with the authorities and grief. They often only begin to wonder whether the estate might have more debts than assets after reviewing the post. By then it is too late.

You should therefore make a rough assessment of the financial position during the first week. An extract from the debt enforcement register for the last place of residence can be ordered quickly, costs little and provides the most important indication. If outstanding debt enforcement proceedings or certificates of loss are recorded, a public inventory should be seriously considered.

Competent authority and procedure in the canton of Zurich

The inheritance office (Erbschaftsamt) at the deceased person’s last place of residence is responsible. In the canton of Zurich, this is the notary’s office (Notariat). Any heir who has not yet accepted the inheritance can make the application. One heir is sufficient. The inventory then applies to everyone.

The procedure in broad terms:

1. You submit the application in writing to the competent notary’s office within one month.
2. The authority usually requires an advance payment, which you must pay.
3. The authority draws up the inventory and records bank balances, property, vehicles, valuables, household contents, insurance policies and known debts. The heirs are obliged to provide information.
4. The public notice to creditors follows. The period for creditors to declare claims is usually at least one month.
5. Once completed, the inventory is made available for inspection.
6. After completion, the heirs have one month to state their decision: accept subject to the public inventory, accept unconditionally, renounce or request official liquidation.

Throughout the procedure, the heirs may undertake only administrative acts that cannot be delayed. Sales, distributions and clearance are not permitted.

What this means for the property

In straightforward cases, a public inventory takes a few months. It takes considerably longer where property or foreign connections are involved. During this time, the rent continues to accrue and the flat remains unchanged.

Practical consequences:

• Give notice on the tenancy agreement nevertheless. Giving notice by the heirs is an administrative act and does not in itself constitute acceptance of the inheritance. It stops further rent from accruing. If in doubt, ask the notary’s office to confirm this.
• Secure the household contents. The flat remains locked and the household contents insurance remains in place. For valuables, moving them into storage may be worthwhile, in consultation with the authority.
• Schedule the clearance only after the heirs have stated their decision. We can carry out preliminary checks and viewings beforehand so that the quotation is ready. Clearance takes place only once the heirs have stated their decision.

The viewing is not problematic: an inspection and valuation do not constitute disposal of estate assets. We do not document anything that would not also be included in the inventory.

When a public inventory is not worthwhile

In most cases, it is not.

• For an estate that clearly has value and straightforward circumstances, it creates unnecessary work and costs.
• For an estate that clearly has more debts than assets, renunciation is quicker, cheaper and just as safe.
• For a very small estate, the procedural costs are disproportionate to the benefit.

A public inventory is suitable for medium-sized to larger estates, unclear liabilities, self-employment by the deceased, guarantees, foreign connections or limited contact with the deceased during their lifetime.

Official liquidation as an alternative

Anyone who wishes neither to accept nor renounce the inheritance can request official liquidation (amtliche Liquidation) instead of an inventory. The estate is then administered by the authority. The heirs are not liable for debts, but receive only any surplus that may remain.

This is the more decisive option if you want as little involvement with the estate as possible but a surplus cannot be ruled out. In this case, the liquidation authority arranges the clearance of the flat.

Summary

Anyone who orders an extract from the debt enforcement register and reviews the post in the first week after a death will have enough information to choose between these four options. From the second month onwards, only three remain.

General information, not legal advice. The Swiss Civil Code (ZGB) and the practice of the competent notary’s office are authoritative.