Article 1162
The execution of the bequest shall not prevent the payment of taxes and debts payable by the legatee in accordance with the law.
1. The main purpose of this article
This article deals with the settlement of bequests and estate debts.
II. Evolution of the Provisions
Article 34 of the original Inheritance Law stipulates that "the execution of a bequest shall not prevent the payment of taxes and debts payable by the legatee in accordance with the law." "Because the provisions of this article are simple and clear, this article has not been amended during the compilation of the Civil Code.
3. Interpretation of Provisions
This article is about the execution of a bequest that shall not be used against the satisfaction of the debts of the estate.
The right to receive a bequest is not a creditor's right, and the right to claim the tax payable by the legatee and the creditor's claim is superior to the legatee's right to bequest, and the legatee cannot distribute the estate equally with the tax department and the legatee's creditors, so the executor of the bequest cannot first use the estate for the execution of the bequest. The executor of the bequest shall pay off the taxes and debts owed by the deceased during his lifetime before executing the bequest with the remainder of the estate. If there is no remaining estate after paying off the taxes and debts owed by the legatee during his lifetime, the bequest cannot be executed, the rights of the legatee are extinguished, and the executor of the bequest has no obligation to execute the bequest.
4. Cases
Pan Jia v. Dong XX and a third party, Duan XX, a dispute over the bequest of the villagers' committee and the debt repayment of the decedent
Facts: Pan Yi is the second son of Pan Jia. Since July 2015, Pan Yi and Dong Moumou have lived together. On October 13, 2016, Pan Yi wrote a "solemn statement", leaving all his family property to Dong Moumou and signing it. On August 8, 2017, after Dong Moumou and her ex-husband Deng Moumou registered their divorce, they continued to live together with Pan Yi. On October 9, 2017, Pan Yi died in a collision with others while driving, leaving behind a house, savings and other inheritances. Before his death, Pan Yi borrowed money from the village committee in two installments in January and June 2015 for building a house, but neither of them was returned. In May 2016, Pan Yi purchased water pump parts at a certain place in Duan, and the arrears were not paid. After Pan Yi's death, Dong Moumou has been living in the house left by Pan Yi. Pan Jia filed a lawsuit with the court, demanding to inherit all of Pan B's estate. The court of first instance held that the "solemn declaration" was actually a valid will, and it was legal for Pan Yi to bequeath his estate to Dong Moumou. Considering that Pan Jia was old and frail, lacked labor, and had real difficulties in life, he could get a proper share of the inheritance. The debts owed by Pan Yi during his lifetime and not repaid shall be repaid in priority from his estate. Accordingly, the judgment was made. Pan Jia was dissatisfied with the first-instance judgment and appealed. In the second trial, Pan Jia died of illness. Before his death, Pan Jia had designated the heirs and donees of his estate in a will. The court of second instance held that since Pan Jia had left a will, the estate due to Pan Yi was transferred to the heirs and donees named in his will in accordance with the provisions on succession, and the judgment of first instance was upheld on other matters.
5. Analysis
In this case, although the "solemn statement" written by Pan Yi did not have the name of the will, it was actually a self-written will. After Pan Yi's death, his estate should be handled in accordance with the will. However, at the time of the Will's effect, Pan Jia was an heir who lacked the ability to work and had no source of livelihood, so he was entitled to receive an appropriate share of Pan B's estate in accordance with the law. According to the provisions of the Inheritance Law in force at the time of the case that the execution of a bequest shall not oppose the repayment of estate debts, when enforcing a bequest in this case, the court should first determine that Pan Jia should leave the necessary share of the estate, and the remaining estate should first be used to pay off the debts owed by the testator during his lifetime, that is, the cash borrowed from the testator before his death as claimed by the village committee and the money owed by the testator as claimed by Duan Moumou before the last remaining estate can be accepted by Dong Moumou as a bequest.