Inheritance Laws in Lithuania
Inheritance laws in Lithuania are primarily governed by the Civil Code of the Republic of Lithuania. These laws establish a framework for how estates are distributed upon death, whether or not a will is made, and the rights of heirs. The Lithuanian system is based on civil law, and while there is some flexibility for individuals to choose how to distribute their property, there are also certain forced heirship rules that protect certain family members, ensuring they receive a portion of the estate.
Here's a breakdown of Lithuanian inheritance laws:
1. Testamentary Freedom
Lithuanian law allows individuals to dispose of their property as they wish after their death, through a will (testament). However, there are limitations due to the forced heirship system, which ensures that certain heirs receive a guaranteed share of the estate, regardless of the decedent's wishes.
2. Forced Heirship
While individuals can generally determine how they want to distribute their estate, Lithuanian law imposes forced heirship provisions that protect the rights of certain family members. These heirs cannot be completely disinherited, and they are entitled to a certain portion of the estate.
- Children (including adopted children) and the spouse are considered compulsory heirs and must receive a portion of the estate. Their shares are protected by law, and they cannot be deprived of their inheritance without a valid legal reason.
- Other relatives (e.g., parents, siblings) may inherit only if there are no compulsory heirs, or if the deceased has specifically chosen to leave them a part of their estate.
3. Intestate Succession
If a person dies intestate (without a valid will), the estate is divided according to the intestate succession rules outlined in the Lithuanian Civil Code. The distribution of the estate depends on the deceased's family situation, with priority given to closer relatives.
Order of Priority for Intestate Succession:
First Priority – Children and Spouse:
- Children (biological or adopted) inherit equally. If there are multiple children, they divide the estate equally among themselves.
- Spouse: The surviving spouse is entitled to a one-half share of the estate if the deceased has children. If there are no children, the spouse receives one-half of the estate as well, but the remaining estate will go to other family members such as the parents.
Second Priority – Parents:
- If the deceased has no children, the estate is divided between the parents of the deceased. If one parent is deceased, the surviving parent receives the entire estate.
Third Priority – Siblings:
- If there are no surviving children or parents, the estate is divided among the siblings of the deceased. The estate is shared equally among them.
Fourth Priority – Grandparents and Other Relatives:
- If there are no surviving children, spouse, parents, or siblings, the estate may pass to more distant relatives such as grandparents, aunts, uncles, or cousins, depending on the situation.
4. Wills (Testament)
A person in Lithuania is free to create a will (testament) to dictate how their property should be distributed after their death. There are several important rules to know about making a will:
Form of Will: The will must be made in writing and can be handwritten or typed. It must be signed and dated by the testator (person creating the will) and, in some cases, witnessed.
- A holographic will (handwritten by the testator) is valid if it is signed and dated by the testator.
- A notarial will is made in front of a notary and is considered to be a stronger form of will, especially if there is any dispute over the will's authenticity.
Inheritance Beyond the Forced Share: In a will, the testator can distribute the portion of the estate that is not subject to forced heirship provisions to anyone, even non-family members. This includes distributing property to friends, charities, or other entities.
Limitations on Disinheritance: It is not possible to completely disinherit compulsory heirs (e.g., children, spouse) unless they have been legally excluded due to specific circumstances, such as:
- The heir has abandoned the family or engaged in serious misconduct.
- The heir has been legally found to have acted in a way that justifies exclusion (e.g., violence, crimes against the deceased).
5. Inheritance of Spouse
In the case of intestate succession, the surviving spouse is entitled to inherit part of the estate, but the share depends on whether there are children.
- If there are children, the surviving spouse shares the estate with the children, and each of them inherits an equal portion.
- If there are no children, the spouse inherits the entire estate if there are no surviving parents or other relatives.
6. Inheritance of Property
In terms of property distribution, Lithuanian law treats real property (land, houses, etc.) and movable property (money, personal belongings, etc.) equally in the division of the estate.
7. Rights of Stepchildren
In Lithuania, stepchildren do not have automatic inheritance rights unless they have been formally adopted by the deceased. If a stepchild has been legally adopted, they have the same inheritance rights as biological children.
8. Inheritance Taxes
Lithuania does not impose a direct inheritance tax on estates. However, there may be capital gains taxes or property taxes on certain assets that are transferred. Additionally, property transactions involving inherited assets may be subject to notarial fees and court fees.
9. Estate Administration and Probate
Once a person has passed away, their estate goes through a probate process. If there is a will, the executor (usually named in the will) will be responsible for overseeing the distribution of the estate. If there is no will, the court may appoint an administrator to handle the estate.
- Notarial Process: In many cases, the estate can be administered through a notary public, especially if the heirs agree on the distribution of the estate. This process is quicker and less formal than going through a court.
- Court Procedure: If there are disputes over the estate or if the heirs cannot agree on how the estate should be divided, the matter may be taken to court for resolution.
10. Estate Disputes
In case of disagreements among heirs or challenges to the will, the dispute can be settled through court proceedings. Common disputes include disagreements about the validity of the will, the division of property, or whether the distribution of the estate complies with the compulsory share rules.
11. Special Provisions for Businesses
Lithuania has provisions for the inheritance of family businesses. When a business is inherited, the heirs can either continue running the business or sell it. If the business is to be kept, special measures can be taken to ensure a smooth transition.
Conclusion
In Lithuania, inheritance is governed by the Civil Code, which balances testamentary freedom with forced heirship rules to protect certain family members. Children, spouses, and sometimes parents have guaranteed shares of the estate, regardless of the deceased’s wishes. Individuals are free to create wills that distribute their estate, but they cannot fully disinherit compulsory heirs without specific legal justification. The probate process is typically straightforward, though disputes may arise regarding wills and the distribution of property. Lithuania does not have an inheritance tax, making it an attractive place for estate planning.
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