German law requires beneficiaries to take on personal liability for the debts of the deceased. This means that if a person passes away with more debt than the value of their estate, their beneficiary is required to pay any of the remaining debts out of their own pockets. Of course, there aren’t going to be that many beneficiaries out there who want to take on a liability as an inheritance. That is unless they wish to hide the fact that the deceased was in debt. Most of the time, however, beneficiaries would rather renounce the inheritance entirely.