Inheritance Laws in Malta
Inheritance laws in Malta are based on civil law and Roman law principles, which were influenced by the French civil code due to Malta’s history as a French colony. The legal framework for inheritance in Malta is primarily governed by the Civil Code of Malta. While Malta is predominantly Catholic, the inheritance system applies uniformly to both Catholics and non-Catholics. However, some exceptions may apply based on religious considerations in specific circumstances.
A. Inheritance Laws in Malta (Civil Law)
Malta’s inheritance laws are governed by mandatory provisions of the Civil Code, which regulate both testamentary (will-based) and intestate (if no will exists) succession.
1. Testamentary Succession (Wills)
In Malta, individuals have the right to make a will to decide how their estate will be distributed after their death. A valid will allows the testator (person making the will) to freely choose how to distribute their estate to their heirs, but there are certain compulsory portions that must be allocated to certain family members.
2. Intestate Succession (Without a Will)
If a person dies intestate (without a valid will), the estate will be distributed according to the statutory rules of intestate succession laid out in the Civil Code. The order of priority follows a hierarchy of family members.
B. Key Features of Inheritance Laws in Malta
Forced Heirship (Compulsory Portions):
- The Civil Code in Malta mandates that certain relatives must receive a compulsory share of the deceased's estate, even if the deceased has written a will. This is to ensure that close family members are guaranteed a portion of the estate.
- These compulsory portions are typically divided between the surviving spouse and children. The system ensures that close family members do not inherit less than what the law guarantees them, even if the deceased’s will states otherwise.
Compulsory Shares for Heirs:
- Children: The deceased's children have a compulsory right to two-thirds of the estate. This share is divided equally among all children, and no will can deprive them of this share.
- Spouse: The surviving spouse is entitled to a compulsory share of the estate, which depends on whether the deceased had children. If the deceased had children, the spouse is entitled to one-third of the estate. If there are no children, the spouse inherits half of the estate.
Discretionary Portion:
- After providing the compulsory shares to the children and spouse, the testator may dispose of the remaining one-third of the estate as they wish. This discretionary portion may be given to other relatives, friends, charities, or anyone else the testator chooses.
Children’s Rights:
- The children of the deceased have equal rights to the estate, and the inheritance is divided equally among them. There is no distinction between sons and daughters in inheritance rights in Malta, meaning both receive an equal share.
Succession to Property:
- If the deceased’s estate includes real property (land, homes, etc.), the family members may choose to inherit the property collectively, or they may decide to sell the property and divide the proceeds among themselves, depending on the wishes of the heirs.
3. Inheritance Process in Malta:
Probate:
- In order to administer the estate of the deceased, the will must first be proved (known as probate). The court will authenticate the will and oversee the distribution of the estate according to its provisions.
Inheritance Deed:
- In certain cases, an inheritance deed may be drawn up to formalize the transfer of ownership of assets. This legal document is required, especially for real estate and immovable property.
Debts of the Deceased:
- The debts of the deceased (such as loans, unpaid bills, or taxes) must be paid before any inheritance can be distributed. The heirs inherit the net estate (after debts are paid).
Executor of the Will:
- The person appointed as executor of the will is responsible for carrying out the wishes of the deceased, including paying debts, selling property if necessary, and distributing the estate according to the will.
C. Inheritance Rights of Specific Relatives
Surviving Spouse:
- The surviving spouse in Malta has inheritance rights under the law. If there are children, the spouse inherits one-third of the estate. If there are no children, the spouse inherits half of the estate.
- The spouse’s share is subject to reduction if there are compulsory heirs (such as children) and other family members.
Children:
- The children of the deceased have equal inheritance rights in Malta. They inherit a compulsory portion of two-thirds of the estate, which is divided equally among them.
- There is no distinction between sons and daughters in inheritance law. Both receive equal shares of the estate.
Parents:
- If the deceased has no children, the parents of the deceased inherit the estate. Each parent receives a one-sixth share of the estate.
- If there is only one surviving parent, that parent will inherit half of the estate if there are no other heirs.
Siblings:
- If the deceased has no spouse, children, or parents, the estate will pass to the siblings of the deceased. Siblings inherit equally, with no distinction between brothers and sisters.
D. Inheritance for Non-Citizens or Foreign Nationals
- Foreign nationals who are residents in Malta or have property in Malta are subject to the same inheritance laws as Maltese citizens. The compulsory portions for heirs still apply.
- If a foreign national has assets in other countries, those assets may be subject to the inheritance laws of the respective country in addition to Maltese law.
E. Inheritance and Estate Taxes in Malta
- Inheritance Tax: Malta does not impose inheritance taxes per se. However, there are stamp duties applicable to the transfer of property, which apply to both inheritance and gifts.
- Stamp Duty: A stamp duty of 5% is charged on the market value of the immovable property inherited, such as land or real estate. This stamp duty can be reduced for family members (such as children, parents, or spouses).
F. Conclusion
Inheritance laws in Malta are based on the Civil Code, with a strong emphasis on compulsory portions for immediate family members such as children and spouses. Individuals can freely dispose of the remaining portion of their estate through a will, but they cannot disinherit their children and spouse from their compulsory shares. Equal rights are granted to sons and daughters in inheritance. The process of inheritance includes probate procedures and the appointment of an executor to carry out the distribution of the estate. There is no inheritance tax in Malta, though stamp duties apply to the transfer of real property.
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