If, in a family company, the father personally used corporate funds under the guise of an advance payment, the corporate debt is, in principle, the responsibility of the corporation, and there is no legal basis to impose joint liability or require the eldest son to be liable first simply because they are family. However, the father’s repayment obligation for the advance payment is inherited by the heirs upon death, so you must determine whether to accept the inheritance outright, accept it with limited liability, or renounce it by comparing the value of the corporate shares and the amount of the debt. Since advances also affect the calculation of inheritance tax, the key is to separately address corporate issues and inheritance issues with precision from both legal and tax perspectives.

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