Article 1159
In the case of the division of the estate, the taxes and debts payable by the decedent in accordance with the law shall be settled;
1. The main purpose of this article
This article is about the division of the estate, the payment of taxes, the payment of debts, and the retention of necessary inheritance.
II. Evolution of the Provisions
Article 19 of the original Inheritance Law stipulates that "a will shall reserve the necessary share of the estate for the heirs who lack the ability to work and have no source of livelihood." Article 33 stipulates: "The inheritance shall pay off the taxes and debts payable by the decedent in accordance with the law, and the payment of taxes and debts shall be limited to the actual value of his estate." The part exceeding the actual value of the estate shall not be subject to voluntary repayment by the heirs. Article 61 of the original Opinions on the Inheritance Law stipulates: "If there is a person who lacks the ability to work and has no source of livelihood among the heirs, even if the inheritance is insufficient to pay off the debts, an appropriate inheritance shall be reserved for them, and then the debts shall be paid off in accordance with the provisions of Article 33 of the Inheritance Law and Article 180 of the Civil Procedure Law." "The Civil Code provides for this article on the basis of articles 19 and 33 of the original Inheritance Law.
3. Interpretation of Provisions
This article is about the order in which the debts of the estate are settled.
Before dividing the estate, the debts should be settled. The order in which estate debts are settled is:
(1) Estate administration fee. The expenses of estate administration, liquidation, division and other expenses are not only for the common interests of the heirs, but also for the interests of the creditors of the estate, and should be paid off first. The fees of the administrator are incurred under this heading. Although this article does not stipulate that the administrative fees of the estate have the highest priority, it is more reasonable and appropriate to give priority to the settlement of the administrative fees. (2) Pay the taxes owed. The taxes owed by the deceased during his lifetime shall be deducted before the debts owed during his lifetime are paid. (3) Debts owed by the deceased during his lifetime. The decedent's estate originates from the various legal acts that the deceased engaged in during his lifetime. The purpose of the legal act performed by the deceased during his lifetime is to obtain the creditor's right, and the performance of the debt is the price of obtaining the creditor's right, that is, the debt is the basis of the creditor's right. When settling the debts of the estate, priority should be given to the repayment of the debts owed by the deceased during his lifetime.
For persons other than the heirs who are dependent on the deceased and lack the ability to work and have no source of livelihood, even if the estate is insufficient to pay off the above-mentioned expenses, taxes and debts, the necessary share shall be retained, which may be more or less than the heir's share of the inheritance, as the case may be.
4. Cases
Li Jia et al. v. Feng Moumou et al., a personal injury compensation dispute
Facts: When Yan Jia and Feng were divorced, their legitimate son Feng lived with Yan Jia and was raised by Yan Jia. Feng Moumou is a middle school student, and Feng Mouwei's current whereabouts are unknown. After Yan Jia killed Li, he committed suicide. Li's heirs Li Jia, Li B, and Wang Moumou sued Yan Jia's heirs Feng Moumou, Yan B, and Li Bing to the court, requesting that the three be ordered to compensate Li Jia and the others for their losses within the share of Yan Jia's estate. Yan Jia owed more than 500,000 yuan to others before his death, and all of them entered the execution procedure, and Yan Jia's property was not enough to pay off all the debts. The court ruled that after Feng Moumou and the other three inherited Yan Jia's estate, they should compensate Li Jia and the other three Li for the compensation after their death, funeral expenses and Li Jia's living expenses within the scope of the amount of the inheritance. Because Feng Moumou and the others failed to perform, Li Jia and the others applied to the court for compulsory enforcement. The court held that, as a student at school, Feng Moumou lacked the ability to work, and his father Feng Moumou's whereabouts were unknown, even if Yan Jia's property was not enough to pay off all the debts, he should retain an appropriate inheritance for Feng Moumou. This is the embodiment of the principle of providing for the elderly and raising children, and it is also an inevitable requirement for the protection of human rights. The court then ruled that Feng Moumou should retain the necessary inheritance as his living and study expenses.
5. Analysis
In this case, Yan Jia committed suicide after killing Li, and Yan Jia's estate should be inherited by his legal heirs, Feng Moumou, Yan Yi, and Li Bing. According to Article 33 of the Inheritance Law, before Yan Jia's estate is divided, the funeral expenses and estate management fees shall be paid, and the debts owed by him shall be paid off and the taxes owed by him shall be paid. As the heirs of the victim Li, Li Jia, Li B, and Wang have the right to demand that Yan Jia's estate be used to pay off the death compensation, funeral expenses, living expenses and litigation expenses of the decedent Li. In addition, the debts of more than 500,000 yuan owed by Yan Jia to others before his death and have entered the enforcement procedure should also be paid off with Yan Jia's estate. In fact, Yan Jia's estate is no longer sufficient to pay off the aforementioned debts. However, Yan Jia's heir, Feng Moumou, is now a middle school student, still underage, lacking the ability to work, and his biological father Feng Mouwei has already divorced Yan Jia, and his whereabouts are unknown. According to Article 61 of the Opinions of the Supreme People's Court on Several Issues Concerning the Implementation of the Inheritance Law of the People's Republic of China, if there is a person who lacks the ability to work and has no source of livelihood among the heirs, even if the inheritance is insufficient to pay off the debts, an appropriate inheritance should be kept for him, and then the debts should be paid off in accordance with the provisions of the Inheritance Law and the Civil Procedure Law.