Many believe that when someone passes away, their debts disappear. The legal reality is more complex. In Argentina, Civil and Commercial Code (Art. 2317) states that heirs are not responsible with their personal funds. The limit is what they inherit. Debts are paid with what the deceased left behind, period. But here’s the important part: there are three situations where this protection completely falls away, and you end up paying out of pocket.

The first is when there are tax debts. If the deceased left unpaid Monotributo, Ganancias, or Bienes Personales, ARCA, ARBA, or AGIP have special powers. The critical point is that if you are judicially summoned to inventory assets and do not do so within the 3 months typically given (, you lose the limited liability benefit. At that point, the tax debt can be claimed directly against your personal assets, including garnishing your salary.

The second situation is more common than you think. Propter rem debts are linked to the property, not the person. If you inherit an apartment with unpaid expenses or ABL (Impuesto Inmobiliario), the condominium or municipality can execute and auction the property regardless of who the new owner is. Many heirs end up dipping into their savings to prevent late interest from eroding the entire inheritance. Additionally, any expenses incurred after the death are the direct responsibility of the heir.

The third is where you make a legal mistake. The law protects you as long as you act as the administrator of the estate, not as the absolute owner until debts are settled. If you sell items from the deceased, withdraw money from their bank accounts, or dispose of assets before the judge authorizes it, you are waiving that protection. Creditors can argue that you fully accepted the inheritance, making you responsible for paying any outstanding debts with your own assets.

However, some obligations do expire. Credit cards and loans generally have Seguro de Vida sobre Saldo Deudor ) normativa BCRA ( that automatically cancels them. Traffic fines are personal and are not transmitted, although you need to settle them if you want to transfer or sell the vehicle. The key is to understand that succession requires strict legal steps. It’s not just about accepting or rejecting the inheritance. Managing debts in an estate can be the difference between inheriting something valuable or ending up in debt.