If one of the heirs is in debt and agrees to transfer their inheritance without receiving their share to another family member, caution is needed regarding the 'inheritance division agreement'. This is because creditors may consider this an act of hiding assets and may file a 'fraudulent conveyance lawsuit'.

In today’s video from the law firm Cheongchul, we will explain the role of the key legal principle of 'contribution' to prevent these risks and the essential countermeasures to be taken during actual division negotiations.

[Table of Contents]

1. Calculation of Contribution: Can it be determined by the agreement of co-heirs?

2. Legal Risks: What is the 'fraudulent conveyance lawsuit' filed by creditors?

3. Response Solutions: Defense strategies against fraudulent conveyance through recognition of contribution

4. Practical Tips: The importance of documenting the agreements

1. Calculation of Contribution: Can it be determined by the agreement of co-heirs?

The 'contribution' recognized for an heir who particularly supported the deceased or contributed to the maintenance and increase of the estate. Should this contribution only be determined through litigation?

To put it simply, "It is possible." Contribution does not necessarily have to go through the judgment of a family court and can also be determined through the agreement of all co-heirs.

However, if an agreement was reached that one of the heirs will not receive their inheritance due to excessive debt, the situation can change. This is not just a simple agreement; it may lead to legal disputes with creditors.

2. Legal Risks: What is the 'fraudulent conveyance lawsuit' filed by creditors?

If an heir (debtor) with debts has negotiated to give their share of the inheritance to another sibling or family member, creditors can assert that this is an attempt to hide assets (fraudulent conveyance).

The lawsuit that creditors file at this time is the [fraudulent conveyance lawsuit].

If the court determines that the inheritance division agreement falls under fraudulent conveyance, the agreement will be canceled and the creditor can exercise rights over the debtor heir's share of the inheritance (enforcement, etc.). In other words, the plan to organize assets agreed upon by family members could be at risk of becoming invalid.

3. Response Solutions: Defense strategies against fraudulent conveyance through recognition of contribution

So, how can one avoid being wrongfully accused of fraudulent conveyance? The key lies in proving 'legitimate contribution'.

If the court recognizes that "the heir in question received more property (or the debtor did not inherit) due to legitimate contribution," this will be seen not as asset hiding but as exercising legitimate rights, therefore fraudulent conveyance does not occur.

Thus, heirs who have received contribution (received more assets) must specifically assert and prove the following facts:

• Timing of Contribution

• Method of Contribution

• Extent of Contribution

• Existence of Special Contributions

4. Practical Tips: The importance of documenting the agreements

The practical response suggested by the law firm Cheongchul is 'to leave evidence in advance'.

Rather than claiming "we divided it this way because we have contributions" only after a lawsuit arises, it is advantageous to clearly state at the initial inheritance division agreement that contributions were considered.

Even if the assets are divided by agreement among co-heirs, if one of the heirs has debts, it is strongly advised to keep the details of the contribution agreement in a specific 'document' to prepare for potential future disputes.

This post is intended to provide legal information and legal judgments may vary based on specific circumstances.