Heirs of a sole trader (ET)

When an individual carrying on business as a sole trader (ET) dies, succession takes place. Under Article 48 of the Bulgarian Succession Act (ЗН), the estate is acquired upon acceptance, with effect from the opening of the succession, that is, the deceased’s death. Succession encompasses all the deceased’s property rights and obligations, including those forming part of the sole trader’s business. The individual and the sole trader have a single estate: neither the trader’s rights nor their liability are confined to the business assets.

Under Article 60(2) of the Commerce Act (ТЗ), the statutory heirs may continue the deceased’s business by partitioning the estate and taking over the enterprise. A takeover under Article 60(2) constitutes a partition of the estate under which one particular heir acquires the aggregate of rights and obligations making up the enterprise. Article 60a, item 2, also expressly entitles the heirs to have the sole trader removed from the Commercial Register. These options under the Commerce Act do not prevent the heirs from first disposing of individual property rights forming part of the enterprise. That entitlement derives from the rule in Article 48 of the Succession Act and its exercise does not depend on the applicability of Article 60(2) or Article 60a, item 2, of the Commerce Act.

Company interests held by the deceased sole trader form part of the estate and pass by succession. Article 129(1) of the Commerce Act expressly allows a company interest to be inherited. Until admitted and registered as members, the heirs have only a monetary claim against the company, in an amount calculated under Article 125(3) of that Act.

This article is not a legal opinion or advice on any particular situation or person. For help with an individual case, consult a lawyer practising civil and succession law.