Inheritance Laws in Hungary
Inheritance laws in Hungary are primarily governed by the Civil Code of Hungary (Act V of 2013). The rules address both testate succession (where a person leaves a valid will) and intestate succession (when a person dies without a will). Hungary's inheritance system is a forced heirship regime, meaning that certain family members have a legal right to inherit a portion of the deceased's estate, regardless of the deceased’s wishes in a will.
Here’s an overview of the inheritance laws in Hungary:
1. Testate Succession (Inheritance According to a Will)
In Hungary, individuals can create a will to decide how their estate should be distributed after death. The inheritance laws allow for freedom of testation, but with some limitations due to forced heirship rules.
Requirements for a Valid Will:
To create a valid will in Hungary, the following requirements must be met:
- Written Form: The will must be in writing. It can be typed or handwritten.
- Signature: The testator (person making the will) must sign the will.
- Witnesses: The will must be signed in the presence of at least two independent witnesses, who also sign the document.
- Notarization: A notarial will (created before a notary public) is possible and considered a more formal and secure option.
Types of Wills:
- Holographic Will: A will that is entirely handwritten by the testator. It must be signed by the testator and does not require witnesses, but it must be clear and unambiguous.
- Attested Will: A formal will signed in the presence of two witnesses.
- Notarial Will: A will that is signed and notarized by a notary public. It is considered more formal and carries additional legal security.
Freedom of Testation:
While individuals have freedom to distribute their estate through a will, Hungarian law includes forced heirship rules, meaning that certain family members are entitled to a portion of the estate, regardless of the provisions of a will.
2. Intestate Succession (Inheritance Without a Will)
If someone dies intestate (without a valid will), the estate will be divided according to the provisions of the Hungarian Civil Code. The inheritance will be distributed among the closest relatives in the following order:
Order of Intestate Succession:
Spouse and Children:
- If the deceased was married and had children, the estate is divided between the spouse and the children.
- The spouse is entitled to one-third of the estate, and the remaining two-thirds are divided equally among the children. If there is only one child, they inherit the entire two-thirds portion.
- If there are no children, the surviving spouse inherits the entire estate.
Children Only:
- If there is no surviving spouse, the children will inherit the entire estate, divided equally among them.
- If there is only one child, that child inherits the entire estate.
No Spouse or Children:
- If there is no surviving spouse or children, the estate will pass to the parents of the deceased. If the parents are deceased, it will pass to the siblings.
- If there are no surviving siblings, the estate will pass to other more distant relatives, such as grandparents, aunts and uncles, or nieces and nephews.
No Relatives:
- If there are no surviving relatives, the estate will go to the state.
3. Forced Heirship and Legitime
Hungary follows forced heirship laws, which means that the testator cannot freely dispose of the entire estate. Certain family members are entitled to a portion of the estate, even if the deceased made a will that attempts to distribute assets differently.
Legitime (Forced Share):
- Children: Children have a forced share of half of the estate that they would have inherited under intestate succession. This means that children are entitled to receive at least half of what they would have inherited if the deceased died without a will, even if the will tries to leave them less.
- Spouse: The surviving spouse is entitled to a forced share of the estate, which can vary depending on whether the deceased was survived by children or other relatives. If there are children, the spouse is entitled to one-third of the estate.
These forced shares ensure that family members (especially children and spouses) receive a guaranteed portion of the deceased’s estate.
4. Inheritance Rights of the Spouse
The surviving spouse has rights to inherit a portion of the deceased’s estate in both testate and intestate succession. The spouse is entitled to:
- One-third of the estate if there are children.
- The entire estate if there are no children, parents, or siblings.
The spouse’s inheritance rights are protected even if the deceased has made a will leaving assets to others, as long as the spouse is entitled to a forced share under the law.
5. Inheritance Rights of Children
In Hungary, both legitimate and illegitimate children have the right to inherit from their parents’ estates. Adopted children are treated the same as biological children under Hungarian inheritance law.
- Children are entitled to half of the estate that they would have inherited if the deceased had died intestate, regardless of the terms of the will (this is their forced share).
- If the deceased has no spouse, the children will inherit the entire estate, divided equally among them. If there is only one child, that child inherits everything.
6. Probate and Estate Administration
The probate process in Hungary involves the legal validation of the deceased’s will and the distribution of their estate. The probate court ensures that the will (if any) is valid and that the estate is properly administered.
- If there is a valid will, the executor named in the will is responsible for handling the estate, including paying debts and distributing assets to the heirs.
- If there is no will, the court will appoint an administrator to manage the estate and distribute assets according to the rules of intestate succession.
The probate process may take time, especially if there are disputes over the will or claims from potential heirs.
7. Inheritance Tax
Hungary has an inheritance tax system, but it is generally quite low compared to other countries. The tax rates vary depending on the relationship between the deceased and the heir, as well as the value of the estate.
- Spouses, children, and parents are generally exempt from inheritance tax on the portion they inherit.
- More distant relatives or non-relatives may be subject to inheritance tax, with rates typically ranging from 5% to 10% of the estate’s value.
8. Disputes Over Inheritance
Disputes over inheritance are possible in Hungary, especially in cases where there is a contested will, or if family members disagree about the distribution of the estate. Common disputes include challenges to the validity of the will, claims for a larger share of the estate, or disputes over the forced heirship portion.
These disputes are typically resolved in court. If the deceased's will is contested, the court will examine the validity of the will and the claims of the heirs.
9. International Considerations
If the deceased owned assets outside of Hungary, those assets may be subject to the inheritance laws of the country where they are located. Hungary generally recognizes foreign wills, but cross-border inheritance may be subject to the laws of the jurisdiction where the assets are located.
For estates with international assets or heirs, it is advisable to consult with a lawyer specializing in international inheritance to navigate the complexities of different legal systems.
Conclusion
Hungary’s inheritance laws provide clear rules for distributing a deceased person’s estate, whether they leave a will or not. The laws ensure that spouses and children are protected through forced heirship provisions, which guarantee that they inherit a portion of the estate. While individuals have the freedom to make a will, the forced share laws limit this freedom, ensuring that certain relatives receive a portion of the estate. The probate process ensures the proper administration of the estate, and the inheritance tax in Hungary is relatively low for close family members.
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