The Executive Yuan yesterday ruled that the amendment to the Civil Code (民法) that would relieve the financial burden of those who inherit debts from deceased family members should not be applied retroactively.
There would, however, be exceptions in two circumstances, Vice Minister of Justice Wu Chen-huan (吳陳鐶) told reporters late last night after a Cabinet-level meeting called by Minister Without Portfolio Kao Su-po (高思博).
According to Wu, the Executive Yuan suggested that the retroactive principle only be applied in two circumstances: when the indebted child incurs debts because his family members got into debt as guarantors or when the descendant inherits debt in subrogation.
The legislature on Wednesday approved the amendment, initiated by Chinese Nationalist Party (KMT) Legislator Wu Ching-chih (吳清池), that would forgive children any debts that totaled more than the value of the estate inherited from family members.
Wu Ching-chih also said at the preliminary review committee that the revision should apply retroactively, but officials from the Ministry of Justice opposed the motion.
The Executive Yuan yesterday reaffirmed its position, with Wu saying that applying the amendment retroactively could have severe consequences for banking institutions.
In accordance with the current civil code, heirs have no more than three months after they receive notice of debts inherited from their parents or grandparents to plead for abandonment of the inheritance at a local tribunal.
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