Probate proceedings (dědické řízení)

The deceased had a flat worth CZK 6,000,000 and a mortgage originally of CZK 4,000,000 at 5.00 %, with about CZK 3,543,000 outstanding after five years. The son inherits the flat together with the debt and pays CZK 23,384 a month from the end of the proceedings. Under Act No. 257/2016 Coll., the borrower's death, if it substantially reduces the ability to repay, is grounds for early repayment without a penalty, for example from the sale of the flat.

Give the bank the death certificate straight away. During the proceedings, payments usually continue from the account, or the future heir makes them by agreement with the bank. Proceedings typically take several months, and the heir is entered in the land registry only on the basis of the final resolution. Stopping payments “until the inheritance is sorted” backfires: the heir then takes over the arrears together with default interest (úrok z prodlení).

Probate is the procedure at the notary; the inheritance is what it decides on, the assets and debts that pass on. A gift of property transfers assets during the owner's lifetime and without any proceedings. The debt secured by the property, however, stays with the donor towards the bank until the bank consents to its assumption (§ 1888), while the lien passes to the recipient.