EUROPEANSUCCESSION LAWS

Second Edition

Edited byProfessor David Hayton LLD

School of Law, King's College, University of LondonBarrister and Recorder, 5 Stone Buildings, Lincoln's Inn

nJORDANS

2002

CONTENTS

ContributorsPrefaceTable of CasesTable of EC MaterialsTable of Conventions and TreatiesTable of National Legislation

Chapter 1

Chapter 2

INTRODUCTIONTHE RELEVANCE OF FOREIGN SUCCESSION LAWFOR A LOCAL PRACTITIONER

THE PROBLEMS OF DIVERSITYProfessor David Hayton

1. INTRODUCTION2. SUCCESSION AND ADMINISTRATION OF

ESTATESDomicile and habitual residenceMatrimonial property regimesMandatory family protection provisionsUnity or scission of successionThe doctrine of renvoiChange of connecting factor

3. THE HAGUE SUCCESSION CONVENTION4. THE HAGUE MATRIMONIAL PROPERTY

CONVENTION5. THE HAGUE ADMINISTRATION OF ESTATES

vix

xxviixxxiiixxxiiixxxix

lxiii

1

1

23789

101212

14

CONVENTION6. THE HAGUE TRUSTS CONVENTION7. MEANS OF MINIMISING PROBLEMS

AUSTRIADr Andreas Lintl

1. INTRODUCTIONAustrian civil law System

2. PROCEDURAL ISSUES3. INTESTATE SUCCESSION

General rules4. DISPOSITIONS ON DEATH

Will (Testament), Codicil (Kodizilt), Inheritancecontract (Erbvertrag)

151519

23

232324252527

27

xii European Succession Laws

5. THE STATUTORYINHERITANCE SHARE 32Possibility to reduce statutory inheritance share 32Persons who are entitled to statutory inheritance

share 32Amount of the statutory inheritance share 33

6. WATVER AND DISCLAIMER OF INHERITANCE 337. LIABILITY OF THE HEIR 338. PRIVATE INTERNATIONAL LAW 349. INHERITANCE TAX 34

10. MEANS OF MINIMISING PROBLEMS WHEREINTERNATIONAL ELEMENTS ARE CONCERNED 35

Chapter 3 BELGIUM 37Professor Dr Alain Verbeke and Anton van Zantbeek1. GENERAL PRINCIPLES 37

Opening of the succession 37Transmission of the succession 37

2. INTESTATE SUCCESSION 40General principles 40Intestate devolution in the absence of a surviving

spouse 44Intestate devolution if there is a surviving spouse 46

3. WILLS 55Types of wills 55Limits on freedom of disposition 57

4. PRIVATE INTERNATIONAL LAW 63Conflict rules 63International jurisdiction 65

5. SOME PRACTICAL PROBLEMS 66Problems 66Movables 66Immovable property 66Structuring purchases 67Purchase en tontine 67Purchase by a Company 68

6. INHERITANCE TAX 68Introduction 68Criteria for levying inheritance taxes 69Determining the taxable basis 69Fictitious acquisitions 70Valuation 71Calculation of inheritance tax - Regional

differences 72Tax rates for public institutions and non-profit

associations 76Special inheritance tax regime for family-owned

enterprises and shares of family ownedcompanies 76

Contents xiii

Avoidance of double inheritance taxation 77Transfer tax at death 78

Chapter 4 THE BRITISHISLES 79James Denker1. INTRODUCTION 79

ENGLAND AND WALES 81James Denker1. ADMINISTRATION OF ESTATES 81

Introduction 81Grant of administration 81Assets not covered by the grant of representation 83Formalities for the grant of representation 84Process of administration 87Jurisdiction 88

2. SUCCESSION TO ESTATES 89Introduction 89Matrimonial property regimes 89Devolution of assets where the deceased died

domiciled in England 90Devolution of assets where the deceased died

domiciled outside England 92Jurisdiction and conflicts of laws aspects 93

3. MINIMISING PROBLEMS WHERE FOREIGNELEMENTS ARE CONCERNED 95

4. TAXES ON DEATH 96Introduction 96The basis of the taxable estate 97Rates of tax 97Exempt transfers 97Chargeable lifetime transfers 98Reservation of benefit 98Special reliefs from tax 98The international element 98The Variation of wills 99Collection of tax 99

5. TABLE OF RULES OF INTESTACY 101

NORTHERN IRELAND 104Sheena Grattan1. INTRODUCTION 104

Court System and the doctrine of precedent 1052. ADMINISTRATION OF ESTATES 106

Introduction 106Grant of administration 106Probate office and branch office 107Assets not covered by the grant of representation 107

xiv European Succession Laws

Property situate outside Northern Ireland 108Formalities for the grant of representation 109Process of administration 109

3. SUCCESSION TO ESTATES 110Devolution of assets where the deceased died

domiciled in Northern Ireland 1104. DEVOLUTION OF ASSETS IN NORTHERN IRELAND

WHERE DECEASED DIED DOMICILED OUTSIDENORTHERN IRELAND - AND MINIMISINGPROBLEMS 115

5. TAXESONDEATH 1166. MISCELLANEOUS DIFFERENCES BETWEEN

NORTHERN IRELAND AND ENGLAND AND WALES 1167. NOTER-UP OF EQUIVALENT LEGISLATION 118

SCOTLAND 119Ross Macdonald

1. INTRODUCTION 1192. GRANT OF ADMINISTRATION 120

Assets not covered by confirmation 121Formalities for confirmation 123The process of administration 125Jurisdiction 127

3. FORMALITIES FOR WILLS 127Formalities for execution 127Revocation of wills 129

4. DOMESTIC LAW OF SUCCESSION 129Intestate succession 129Restraints on testamentary disposition 131Disqualification from inheritance 132Testate succession 133

5. PRTVATE INTERNATIONAL LAW ASPECTS 133General principles 133Intestate succession 134Testate succession 134Executry administration 134

6. MINIMISING PROBLEMS WHERE FOREIGNELEMENTS ARE INVOLVED 135

JERSEY 136Steven Meikkjohn and Keith Dixon

1. INTRODUCTION 1362. ADMINISTRATION OF ESTATES 137

Movable and immovable property 137Domicile 138Grant of representation 139Grant of probate 140Grant of letters of administration 143

Contents xv

Contentious matters - Variation of dispositions 144Cases where a grant of probate or administration

is not required 1453. JERSEY LAW OF SUCCESSION 147

Immovable property (Real estate) 147Movable property 149

4. CONFLICT OF LAWS 1535. MINIMISING PROBLEMS WHERE FOREIGN

ELEMENTS ARE CONCERNED 153Separate wills 153Inter vivos settlements 154Joint ownership 155

6. TAXESONDEATH 156

ISLEOFMAN 157Neil Morris and John Wright

1. INTRODUCTION 1572. GRANT OF REPRESENTATION 157

Cases where deceased died domiciled in theisland 158

Cases where deceased was domiciled outside theIsland 159

3. THE WILL 1604. ASSETS NOT COVERED BY A GRANT OF

REPRESENTATION 1615. ADMINISTRATION OF THE ESTATE 161

Collection of assets 162Payment of debts 162

6. PROBATE JURISDICTION 1637. SUCCESSION TO ESTATES 163

Where the deceased died testate 163Where the deceased died intestate 165

8. CONFLICT OF LAWS 1669. MINIMISING PROBLEMS WHERE FOREIGN

ELEMENTS ARE INVOLVED 16710. TAXES ON DEATH 167

Chapter 5 CYPRUS 169Emily Yiolitis1. INTRODUCTION 169

Legislation 169Domicile 169

2. WILLS 170In general 170Capacity to make wills 170Formalities of a will 170Declaration of death 171Unworthiness 172

xvi European Succession Laws

The disposable portion of the will 173Rights of surviving spouse and succession 174Contribution 174Legacies 175Gifts in contemplation of death 175Revocation of wills 176

3. DEGREESOF KINDRED FOR TESTACY ANDINTESTACY 176

4. PRIVATE INTERNATIONAL LAW 1775. ADMINISTATION OF ESTATES 178

In general 178Letters of administration and probate 178Probate registrar and registry 178Deposit, discovery and production of wills 179Grants 179Vesting of estate on grant and after

administration 180Administration generally 180Power of the court to remove or replace personal

representative 181Determination of certain matters by originating

summons 181Resealing of probates or of letters of

administration 1826. MINIMISING PROBLEMS WHERE FOREIGN

ELEMENTS INVOLVED 1827. SUCCESSION AND DEGREES OF KINDRED 183

Chapter 6 DENMARK 185JQviste

1. INTRODUCTION 1852. MATRIMONIAL PROPERTY REGIME 1853. TYPES OF MARRIAGE CONTRACT 1864. THE SURVIVING SPOUSE 1875. DANISH INHERITANCE LAW 187

Conditions for inheritance 187Distribution rules on intestacy 188

6. WILLS 190Formal validity: The Hague Convention 190Formal validity: Danish Law 190Capacity 191Invalidity 191Revocation 191Restricted dispositions 191Trusts and Danish Law 191

7. CONTRACTS REGARDING INHERITANCE 192Renunciation of inheritance 192Agreements not to make or revoke a will 192

Contents xvii

Chapter 7

Dispositions of inheritance8. GIFTS9. PROBATE

Undivided estate10. PRIVATE INTERNATIONAL LAW

Jurisdiction of Danish Courts in matters ofsuccession

11. DOMESTIC SUCCESSION LAW12. TAXESON DEATH

Inheritance taxTaxable baseRatesIncome taxation on the estate

FINLANDProfessor GO Zacharias Sundström

1. INTRODUCTION2. INTESTATE SUCCESSION

Order of succession3. EXCEPTIONS TO THE NORMAL ORDER OF

SUCCESSIONThe right to deprive someone of the right to

inheritLoss of the right to inheritGiving up the right to inherit

4. THE SIZE OF THE INHERITANCECompulsory legal shareAdvance inheritanceContributionsCompensation for work done

5. THE WILLMaking a willRevocation of a willBeneficiariesNotification of a will

6. AVAILABLE REMEDIESContesting a willAction to declare a will non-existentAction to reinstate a willAction for determination of the testator's

competencyAction to obtain interpretation of a will

7. THE POSITION OF THE SURVIVING SPOUSE8. MARITAL PROPERTY9. PRIVATE INTERNATIONAL LAW

Lex successionisDoctrine of renvoiReform

192192193193193

194194194194195195196

197

197197198

199

199200200200200201201202202202203203203204204204204

204204205205206206206207

xvii i European Succession Lews

10. MINIMISING PROBLEMS WHERE FOREIGNELEMENTS ARE INVOLVED 208

11. TAXESON DEATH 209

Chapter 8 FRANCE 211Marie L Revillard

1. INTRODUCTION 2112. CONDITIONS FOR AVALID WILL 212

Formal validity 212Central register of testamentary dispositions 216Essential validity 217

3. DOMESTIC SUCCESSION LAW 219Some important features 219Devolution on intestaey 220Devolution by will, gift or contract 222Administration of the estate 228

4. ASPECTS OF PRIVATE INTERNATIONAL LAW 231Conflictoflaws 231Conflicts of jurisdiction 236

5. MEANS OF MINIMISING PROBLEMS WHEREFOREIGN ELEMENTS ARE CONCERNED 237

Choosing the right nature of property 237Tontine 237Changing the matrimonial property regime 237Estate planning 238Ensuring that one law governs both the

deceased's estate and his matrimonial regime 2386. TAXESON DEATH 239

Principles 239Gift and estate tax 239Double taxation treaties concerning inheritance

and gift tax 240

Chapter 9 GERMANY 243Dr Karsten Kühne, Stephan Dollinger and Dirk Krome

1. INTRODUCTION 2432. MAIN PRINCIPLES 244

Universal succession 244Automatic devolution 244Intestate succession or disposition 244Capacity to be an heir 244Disinheritance and compulsory portion (statutory

share) 245Conflicts with corporate law 246

3. INTESTATE SUCCESSION 247Order of inheritance 247

4. DISPOSITIONS ON DEATH 250Personal capacity to make a will 250

Contents xix

Formalities and revocation 251Official safe custody and opening of will 251Many possibilities with regard to dispositions 252Beneficiary with interest in possession and

reversionary beneficiary 252Legacy 253Directions and conditions 254Administrative executors 254Joint will 255Inheritance contract 255Anticipated succession 256

5. CALCULATION OF ESTATE AND SHARES IN THEESTATE 256

6. LIABILITY OF THE HEIR 2577. WATVER AND DISCLAIMER OF INHERITANCE 2578. CERTIFICATE OF INHERITANCE 2589. DISTRIBUTION OF THE ESTATE 259

10. PRIVATE INTERNATIONAL LAW 26011. GERMAN INHERITANCE TAX 260

Personal tax liability 261Arising of tax, 'taxable person' 262Notification Obligation, tax return 262Valuation 263Tax brackets and tax rates 263Aggregation of acquisitions, allowances 264Inheritance tax privileges of the property regime

of the Community of surplus 264Privileges for domestic business property 265Disclaimer as means for an arrangement 266Cross-border cases: prevention of double taxation 266Common law trusts 268

12. SOME SIMPLE MEANS OF MINIMISING PROBLEMSWHERE INTERNATIONAL ELEMENTS ARECONCERNED 268

Chapter 10 GREECE 271KD Magliveras

1. INTRODUCTION 271Historical overview 271The conflicting interests in succession 272The general principles of succession 273

2. THE WILL 273Ordinary wills 273Extraordinary wills 276Legal capacity to make wills 277Revocation of wills (arts 1763 to 1768) 277The contents of wills (arts 1781 to 1808) 278Substitution of heirs (arts 1809 to 1812) 280

x x European Succession Laws

Validity of wills (arts 1781 to 1788) 280Legal consequences of invalid or voidable wills

and dispositions 282Publication of wills (arts 1769 to 1780) 283The testamentary executor (arts 2017 to 2031) 284

3. INTESTATE SUCCESSION (ARTS 1813 TO 1824) 2864. FORCED HEIRSHIP (ARTS 1825 TO 1845) 2885. DISINHERITANCE (ARTS 1839 TO 1845) 2906. UNWORTHINESS (ARTS 1860 TO 1864) 2917. ACCEPTANCE OF SUCCESSION - THE BENEFIT

OF INVENTORY (ARTS 1901 TO 1912) 2928. RENUNCIATION OF SUCCESSION (ARTS 1847 TO

1859) 2939. CONTRACTUAL RENUNCIATION WHERE

FOREIGN SPOUSE INVOLVED 29410. THE FIDEICOMMISSUM (ARTS 1923 TO 1941) 29511. LEGACIES (ARTS 1967 TO 2010) 29612. THE CERTIFICATE OF INHERITANCE (ARTS 1956

TO 1966 AND ARTS 819 TO 823 CCP) 29713. PRIVATE INTERNATIONAL LAW (ART 28) 29814. MINIMISATION OF PROBLEMS WHERE FOREIGN

ELEMENTS ARE INVOLVED 29915. TAXESON DEATH 300

The constitutional provisions on taxation 300An overview of the Greek tax System 300Bilateral treaties for the avoidance of double

taxation 301Taxation of succession 302

Chapter 11 IRELAND 305Drjohn Mee1. INTRODUCTION 3052. ADMINISTRATION OF ESTATES 305

General 305Appointment of personal representatives 306Distribution of assets 309

3. SUCCESSION TO ESTATES 310Testate succession 310Freedom of testation 312Intestate succession 316

4. THE INTERNATIONAL DIMENSION 318Introduction 318Formal validity of wills 318Law governing rights of succession 318Applications by children where a foreign element

is involved 318Claims by the surviving spouse where a foreign

element is involved 319

Contents xxi

Intestate succession 319Avoidance of limits on freedom of testation 319Minimising problems where foreign elements are

concerned 3205. TAXATION 320

Capital acquisitions tax 320Where a foreign element is involved 321Probate tax 321

Chapter 12 ITALY 323DB Macfarlane

1. INTRODUCTION 323Fiduciary obligations in Italian law of succession 323

2. FORMALITIES FOR A VALID WILL IN ITALIANDOMESTIC LAW 324

The notarial function 324Formsofwill 324Revocation 325

3. THE DOMESTIC LAW OF SUCCESSION 325Reserved portions 325Testamentary capacity; grounds of vitiation 327Capacity to succeed and disqualification 327Acceptance with benefit of inventory and

renunciation 327Other provisions: certainty; delegation;

conditions; public order 328Executors 328Intestate succession 329Administrative procedures on death 329

4. INTERNATIONAL ASPECTS 331Connecting factors; renvoi 331Form 332Substance 333Jurisdiction 337

5. THE MINIMISATION OF PROBLEMS WHEREFOREIGN ELEMENTS ARE INVOLVED 338

Chapter 13 LUXEMBOURG 339Professor Dr Alain Verbeke and Anton van Zantbeek1. GENERAL PRINCIPLES 339

Opening of the succession 339Transmission of possession and administration 339Transmission of ownership: three options 340Conditions to inherit 341

2. INTESTATE SUCCESSION 341Intestate devolution in the absence of a spouse 341Intestate devolution with spouse 344Special regimes 347

xxii European Succession Laws

3. WILLS 347Types of wills 347Registration of wills 348Limits on freedom of disposition 348

4. PRIVATE INTERNATIONAL LAW 351Conflict rules 351International jurisdiction 352

5. TAXES 353Inheritance tax 354Transfer tax upon death 358

6. WAYS TO MINIMISE SUCCESSION PROBLEMSWHERE INTERNATIONAL ELEMENTS AREINVOLVED 359

Chapter 14 MALTA 361Simon Tortell

1. OVERVIEW 3612. TYPES OF WILLS 362

Ordinary wills 362Wills unica charta 365

3. CAPACITY TO MAKE AND RECEIVE BY WILL 3664. LEGITIM AND DISINHERITANCE 368

Legitimate and illegitimate issue 369The surviving spouse 370Ascendants 370Disinheritance 370Abatement of legacies and donations to satisfy

legitim 3715. LEGACIES 3736. CONDITIONAL DISPOSITIONS 3757. ACCEPTANCE AND RENUNCIATION 3768. TESTAMENTARY EXECUTORS 3779. INTESTATE SUCCESSION 378

10. MATRIMONIAL PROPERTY REGIME 37911. PRIVATE INTERNATIONAL LAW 38112. WAYS FOR FOREIGNERS TO MINIMISE PROBLEMS 38313. TAXATION 383

Chapter 15 THE NETHERLANDS 385FAA Duynstee and KMFJ Houben

1. DOMESTIC LAW 385Formalities for a valid will 385The law of succession 385Administration and division 390

2. DOMESTIC LAW-NEW LEGISLATION 392Succession rules on intestacy (arts 4:9 et seq) 392Restrictions on powers of disposition 393Statutory portions 393

Contents xxiii

Avoiding statutory portions 394Executors 394

3. PRIVATE INTERNATIONAL LAW 395Introduction and sources 395The law relating to the form of testamentary

dispositions 395The law relating to the capacity of a person to

make testatmentary dispositions 396The law applicable to the succession of estates 396The law applicable to the administration and the

liquidation of estates 399International jurisdiction of Dutch courts in

matters of succession 401Recognition and enforceability of foreign court

Orders 4014. WAYS TO MINIMISE PROBLEMS WHERE

ELEMENTS OF FOREIGN LAW ARE INVOLVED 402Choice of lawclauses (Professio juris) 402Substantive law reference 403Trusts 403Replacement of assets 403Tontine arrangements and deferral of statutory

portions 4035. TAXES ON DEATH 404

Basic principles of taxation 404Deemed acquisitions 404Taxation on death of non-residents in respect of

Dutch situs assets 404Valuation 405Exemptions 405Rates 406Double taxation 406Tax declaration 407Assessments and payment 407

Chapter 16 PORTUGALProfessor FA Ferreira Pinto

1. INTRODUCTIONHistorical backgroundGeneral layout and basic characteristics of

succession law2. DOMESTIC LAW OF SUCCESSION

Succession by testamentSuccession by contractCompulsory succession sharesIntestate succession

3. ASPECTS COMMON TO THE DIFFERENT TYPESOF SUCCESSION

409

409409

410412412416417418

420

xxiv European Succession Laws

Opening of the succession and summoning ofeligible persons 420

Right of representation 421Acceptance and rejection of inheritance 421Administration of inheritance 422Distribution of the estate 423

4. ASPECTS OF PRIVATE INTERNATIONAL LAW 423Conflictoflaws 423Conflict of jurisdictions 428

Chapter 17 SPAIN 431Professor Julio D Gonzalez Campos and Professor Dr AlegriaBorräs

1. INTRODUCTION 431Pluralism of Spanish succession law 431Succession in Spanish law - general

characteristics 4322. DOMESTIC LAW ON SUCCESSION 433

Wills 433Agreements as to succession 442Intestacy 443Matters common to the different kinds of

succession 4463. PRIVATE INTERNATIONAL LAW ON SUCCESSION 450

General aspects 450Conflict of laws: general rules 451Conflict of laws within Spanish regions 458

4. TAXESON DEATH 4615. WAYS FOR FOREIGNERS TO MINIMISE PROBLEMS 463

Chapter 18 SWEDEN 465Lennart Herslow (deceased) and Per Gellström

1. INTRODUCTION 4652. ORDER OF SUCCESSION 4663. MARITAL PROPERTY 466

General principles 466Shares and portions 467

4. THE COHABITANTS (JOINT HOMES) ACT 4685. THE INHERITANCE RIGHTS OF A SPOUSE 4696. WILLS 4707. INTERNATIONAL PROCEDURAL LAW 4718. INTERNATIONAL PRIVATE LAW 472

General principles 472Property relations of spouses 472Property relations of cohabitants 473Inheritance 473

9. TRUSTS 47410. INHERITANCE TAX 474

Chapter 19

Contents xxv

11. GIFT TAX 47612. TAXATION OF SWEDISH ESTATES 47613. TAXATION OF FOREIGN ESTATES AND

BENEFICIARIES OF FOREIGN ESTATES 47614. MINIMISING PROBLEMS WHERE FOREIGN

ELEMENTS ARE INVOLVED 477

SWITZERLANDDr Duri Berther

1. PRIVATE INTERNATIONAL LAWIntroductionJurisdictionApplicable lawRecognition of foreign decisions and other legal

acts2. SUBSTANTIVE LAW

IntroductionPrinciplesHeirs on intestacyWills and testamentary pacts (testamentary

dispositions)Administration and devolution of the estate

3. THE WAY FOR FOREIGNERS TO MINIMISEPROBLEMS

4. TAXESON DEATHGeneralLiability to taxBasis for taxationTax chargeDouble taxation Conventions

479

479479480481

474485485485486

488498

511512512512513513514

APPENDICES 515APPENDIX A: HAGUE CONVENTION ON THE LAW

APPLICABLE TO TRUSTS AND ONTHEIR RECOGNITION 1985 517

APPENDIX B: HAGUE CONVENTION ON THE LAWAPPLICABLE TO THE ESTATES OFDECEASED PERSONS 1989 523

APPENDIX C: GUIDE TO THE LAWS OF DIFFERENTSTATES 531

Index 533