Lizard in the inheritance: the 3 hidden risks where you'll end up paying out of pocket in an Argentine estate

In Argentine inheritance law, receiving an estate is not as simple as inheriting money and assets. There is a “hidden lizard” in the process: under certain circumstances, the heir may end up paying the deceased’s debts with their own assets. Although the law states that financial obligations are paid only with what the deceased left behind, there are three scenarios where this protection completely disappears.

Legal Backing: How Far Does Your Responsibility as an Heir Extend?

The Civil and Commercial Code of the Nation (Art. 2317) was designed to protect the heir. In theory, the deceased’s debts are settled solely with the inherited assets. If the inheritance isn’t enough to cover all obligations, the remaining debt is simply canceled. However, this protection has very specific limits.

The heir’s liability is limited to the value of what they received. This means creditors cannot go after your personal savings, additional properties, or your salary. It’s like a shield: the inherited assets are what’s exposed, but your personal estate remains protected. The problem is that there are three situations where this shield is completely broken.

First Trap: Omitting the Inventory Before Public Agencies

When the debt is of a fiscal nature, tax agencies operate under different rules. If the deceased owed obligations to ARCA (Federal Administration of Public Revenues), ARBA (Buenos Aires Province Revenue Agency), or AGIP (General Revenue Administration), the heir faces a dangerous scenario.

The deceased may have had debts related to Monotributo, Income Tax, or Personal Assets that were never properly declared. Here’s the critical part: if the heir is judicially summoned to inventory the assets and fails to do so within the legal deadline (usually 3 months), they automatically lose the benefit of limited liability. According to Art. 2321, inc. b, without an inventory, the tax debt can be claimed directly against the assets and the heir’s personal estate, allowing garnishments on wages or bank account freezes. In other words: the “legal lizard” catches you through inaction.

Second Trap: Debts That Travel with the Property

This is the most common risk and where many heirs suffer financially. There are debts called “propter rem” that are not linked to the deceased person but to the property itself. If the inheritance includes an apartment, house, or land, debts for expenses or property taxes (Ablution Fee, or ABL) automatically travel with the property.

The condominium or municipality can execute and auction the property regardless of who the new owner is. Penalty interest and fines grow exponentially over time. To prevent the debt from exceeding the property’s value, the heir is often forced to settle these obligations with their own money before selling or using the property. Additionally, all expenses and taxes incurred after the death are the direct and immediate responsibility of the heir. It’s a debt that doesn’t wait.

Third Trap: Improper Disposal of Assets Before Settlement

The law protects the heir as long as they act as an administrator of the assets and not as an absolute owner. This distinction is crucial. If the heir sells appliances, jewelry, technology, cars, or withdraws money from the deceased’s bank accounts before the judge authorizes it, they commit a serious legal error.

Irregularly disposing of assets automatically implies a waiver of legal protection. Creditors can argue that the heir accepted the inheritance fully and are therefore responsible for paying any outstanding debts with their own assets. It’s as if you voluntarily dropped the shield. The creditor then has the right to pursue your personal assets to recover what the deceased owed.

What DOES Disappear with Death: Debts Not Inherited

Not everything is inherited. There are financial commitments that automatically extinguish upon death and do not impose obligations on the heir.

Credit cards and personal loans are generally protected by a Death Benefit Insurance on the debtor’s balance, according to BCRA (Central Bank of Argentina) regulations. This coverage automatically cancels the debt at the moment of death. On the other hand, traffic fines are strictly personal and are not transferred to heirs. However, they must be paid if you want to transfer or sell the vehicle.

Understanding these limits and exceptions is essential to properly navigate the inheritance process. The goal is to protect the heir’s patrimony while respecting the genuine obligations of the deceased.