Death of the contractor or principal - legal consequences


A contract of mandate is an agreement concluded between two parties, i.e. the principal and the commissioned party. By concluding the contract, the party accepting the order undertakes to perform a specific activity for the principal. But what if one of the parties dies after the conclusion of the contract? What are the legal consequences of the contractor's or principal's death?

In the event of the contractor's death, the Principal should perform a number of steps to properly settle the accounts with both the Social Insurance Institution and the tax office. There is also the issue of the remuneration earned by the deceased contractor, which according to Article 922 of the Civil Code becomes an inheritance as property right, which in turn has insurance and tax consequences.

In the event of the principal's death, the contractor should, unless the contract stipulated otherwise, continue to carry out the order he undertook.

Death of the contractor or principal and settlement with ZUS

In the event of the contractor's death, as a rule, the contract of mandate expires, unless the provisions of the contract provide otherwise. The expiry of the contract is associated primarily with the termination of the insurance title, so the client is obliged to deregister the contractor from ZUS on the ZWUA form with the code 500 - death of the insured person. It is very important that social security contributions to ZUS are not deducted from the remuneration of the deceased contractor, and thus the payment will not be included in the settlement documents.

Example 1.

The contractor reported only for health insurance dies - we show it on the RZA report with a zero basis, unless the contractor received some payment in the same month for which we submit the report, and thus achieved income before his death.

Settlement with the tax office

The remuneration earned by the deceased contractor becomes an inheritance under the provisions of the Civil Code. As the property right acquired by the heir, he is subject to inheritance and donation tax. The client, after proper verification of the documents, pays the decrease in the gross amount and does not pay the advance tax. The tax on the amount paid should be paid by the heir.


In order to obtain remuneration from the deceased contractor, the heir must present the principal with a valid judgment confirming the acquisition of an inheritance or a registered certificate of inheritance, which is art. 1027 of the Civil Code.

On the other hand, the client is obliged to issue the PIT-11 information to the deceased contractor. However, he only shows the advances collected for the period of the contract before his death. It does not include the remuneration that is included in the inheritance. The declaration prepared in this way is forwarded to the tax office, while the second copy should be left with the client. In a situation where the spouse of the deceased requests the PIT-11 declaration, the contractor should issue it. There is a possibility of joint settlement with the deceased spouse or deceased spouse.


The death of one of the spouses does not deprive the possibility of a one-year joint settlement, the surviving spouse retains the right to do so.

In the event of the principal's death, other than in the event of the principal's death, the contract shall not expire. Thus, unless otherwise agreed in the contract, the contract acceptor should continue to carry out the activities to which he has agreed. The rights and obligations of the client are thus transferred to his heir or his legal representative.