Planning Your Cross-Border Inheritance: What You Need to Know

When managing an international estate, understanding cross-border inheritance rules is critical to ensuring your wishes are honored and your loved ones are protected. In the European Union (EU), unique rules allow you to take control of which country’s law governs your inheritance, offering opportunities for clarity and planning—but only if you act decisively.

Choosing the Law for Your Inheritance

By default, your inheritance (also referred to as succession) is typically managed by an authority in the EU country where you last lived. This could be a court or a notary, which will generally apply its national laws to your estate. However, EU rules give you an important option: you can choose the law of your nationality to govern your inheritance instead, regardless of whether your nationality is tied to an EU country.

If you hold multiple nationalities, you can select the law of any of your nationalities. This choice must be explicitly and clearly stated in your will or a separate declaration. To ensure the validity of your choice, it must meet the legal requirements of:

  • The EU country where you last lived, or
  • Your country of nationality.

This flexibility allows you to align your estate plan with the legal system that best supports your objectives.

Limitations on the Choice of Law

While this EU regulation is widely applicable, there are important exceptions:

  • Denmark and Ireland: These countries do not follow EU inheritance rules. If your heirs handle your estate in either of these jurisdictions, your choice of law may not be considered. However, Danish and Irish citizens can benefit from these EU rules if their estate is handled in an EU country other than Denmark or Ireland.
  • Contrary to Public Policy: If provisions of your chosen national law conflict with the public policy of the EU country handling your estate—for instance, laws discriminating between heirs based on sex or legitimacy—those provisions may be disregarded.

Understanding these nuances is essential to ensuring your inheritance plan is respected.

What the Applicable Law Governs

The law governing your inheritance, whether based on your residence or nationality, will dictate key aspects of your estate, including:

  • Beneficiaries: Who is entitled to inherit your assets, such as your spouse, children, or parents.
  • Disinheritance: Whether it is legally permissible to exclude certain family members.
  • Reserved Portions: Whether certain heirs, like children, are entitled to a fixed share of your estate.
  • Gift Restoration: Rules about returning lifetime gifts to the estate before distribution.
  • Asset Transfer: Procedures for transferring ownership to your heirs.
  • Debts: Determining liability for any debts you leave behind.
  • Asset Division: How your assets—both movable (e.g., bank accounts) and immovable (e.g., real estate)—are divided among heirs.

Matters Beyond EU Inheritance Rules

It’s also important to note what these rules do not address. EU regulations on cross-border inheritance do not cover:

  • Inheritance Taxes: The taxes your heirs may owe on your estate.
  • Civil Status: Determination of your marital status and last spouse.
  • Property Division in Marriage: How marital property is divided after death.
  • Corporate Interests: How shares in companies are handled.

These exclusions highlight the need for comprehensive estate planning that considers additional factors beyond the applicable inheritance law.

Protect Your Cross-Border Legacy

Planning for cross-border inheritance requires a clear understanding of complex legal frameworks. At the Law Offices of Charles L. Kurmay, we help clients navigate these intricacies, ensuring compliance with EU rules and safeguarding your estate for future generations. Whether you need assistance choosing a governing law, drafting a will, or optimizing for tax efficiency, we are here to guide you every step of the way.

Contact us at (203) 380-1743 to schedule a consultation and secure your international legacy.

Disclaimer: This blog post is for informational purposes only and does not constitute legal advice. For advice regarding your particular situation, please consult a qualified attorney.