In our globalized world, it is no longer considered exceptional that members of a family live in different countries. Along with this, it is also increasingly common that assets \u2013 bank accounts, real estate, savings, etc. \u2013 are distributed across several countries. However, this situation gives rise not only to opportunities but also to some serious legal questions, especially when it comes to inheritance. <\/p>\n\n
It\u2019s not always citizenship that decides, but habitual residence<\/strong><\/p>\n\n Many find it surprising when they hear that in inheritance matters, it is not primarily the citizenship of the deceased that matters. The determining factor, pursuant to Regulation (EU) No 650\/2012, the so-called European Succession Regulation, is where the deceased actually lived in the last period before their death, where they lived their everyday life, that is, where they had their \u201chabitual residence\u201d, therefore to which country they were more closely connected, since fundamentally this determines which country\u2019s authority proceeds and under what legal provisions the entire estate is distributed \u2013 even in the case of assets located in several countries. <\/p>\n\n In practice, this means that the entire inheritance of a Hungarian person living abroad \u2013 including real estate located in Hungary \u2013 may be settled according to foreign rules. The same is true in reverse: if someone lives in Hungary, then the fate of foreign assets may also be governed by Hungarian law. <\/p>\n\n What is the European Certificate of Succession?<\/strong><\/p>\n\n The fundamental objective of the EU Regulation is the simplification of cross-border inheritance cases and ensuring mutual recognition of inheritance decisions within the Member States of the EU, which is implemented in practice by means of the European Certificate of Succession. <\/p>\n\n A European Certificate of Succession is an official document which certifies the status of the heir and makes it possible to enforce inheritance within the Member States of the EU. The Certificate is issued by the notary competent in the probate procedure and is automatically recognized by all EU Member States. In practice, for example, based on a Certificate issued by a French notary, the probate of real estate located in Hungary can be carried out with the involvement of a Hungarian lawyer. <\/p>\n\n Different rules, different results<\/strong><\/p>\n\n The inheritance regulations of individual countries may differ significantly. What is self-evident in one place, for example the rights of the spouse or partner, the rules of intestacy or the formal requirements of a will \u2013 may be completely different elsewhere. Therefore, it is a key issue which country\u2019s law ultimately applies since this determines who receives what portion of the estate. <\/p>\n\n Several countries, several procedures? Not necessarily <\/strong><\/p>\n\n Although it may occur that parallel procedures are initiated in different countries, the basic principle is unity: the estate must be treated as a whole, and the same law must be applied; that is, the probate procedure concerning all assets of the deceased, wherever located, is conducted by one notary. This reduces the risk that parts of the inheritance are distributed according to different rules, leading to inconsistency. At the same time, in practice, this may still be a time-consuming and complex process, especially if a dispute arises between the parties concerned. <\/p>\n\n Taxation: the hidden pitfall<\/strong><\/p>\n\n One of the most difficult parts of international inheritance to understand is taxation. It is not uncommon that several countries claim the right to tax the inheritance, for example based on the place of residence of the heir, the domicile of the deceased or the location of the assets. This may result in multiple tax burdens, which can be mitigated by proper planning but cannot always be completely avoided. <\/p>\n\n We have a say if we act in time \u2013 choice of law based on nationality<\/strong><\/p>\n\n It is important to know that the deceased may, within certain limits, shape the situation in advance: in a will, they may decide that, instead of the law of their residence, the law of the country of their nationality shall apply to the inheritance; all this may provide greater predictability and may help avoid later disputes.<\/p>\n\n Awareness is the best protection \u2013 estate planning<\/strong><\/p>\n\n Since the Covid pandemic, significantly more people have been thinking about and putting into writing their last wills, requesting prior legal advice, as well as specific studies and tax risk analyses, in order to ensure in advance the fate of their assets located in several countries and the estate of their heirs in the event of their death.<\/p>\n\n It is also an important aspect that it is not enough to write a will for ourselves and put it in a drawer, since it is not realistic to expect that it will be found when needed, and it may also be destroyed or lost before death. The best option is to place the will prepared by a lawyer or notary for safekeeping with the competent Hungarian Chamber of Civil Law Notaries, as we can be sure that the notary conducting the probate procedure will first check whether a will has been registered. <\/p>\n\n A well-drafted will prepared by a lawyer\/notary, which lists and identifies all heirs and all existing assets, may not only save costs but may also prevent conflicts between family members in a period that is already emotionally very burdensome.<\/p>\n\n Concrete example: the estate of Johnny Hallyday \u2013 legal problems<\/strong><\/p>\n\n After the 2017 death of Jonny Hallyday, a world-famous French singer, his heirs became involved in a lengthy legal dispute.<\/p>\n\n The singer had a Californian will dated 2014, in which, under Californian law, he left his entire estate, including his copyright royalties, to his wife, and disinherited his two eldest biological children from the inheritance. Californian law does not recognize the principle of \u201cforced heirship\u201d existing in France, where children automatically qualify as heirs. <\/p>\n\n The problem was that, first, it had to be determined where the habitual residence of the singer was, which in his case also determined the applicable law and jurisdiction.<\/p>\n\n The Supreme Court of Nanterre in France announced that it has jurisdiction to hear the case.<\/p>\n\n The disinherited biological children challenged their father\u2019s American will before a French court in France on the grounds that, after their father\u2019s death, French law is applicable to the estate. <\/p>\n\n After two years, the courts finally declared that singer Johnny Hallyday lived habitually in France, and in his case, French law governed the fate of the estate, and French law does not recognize the possibility of disinheriting children.<\/p>\n\n The result of the long legal dispute was that the widow took over the management of the estate, including the payment of significant debts, while concluding financial agreements with the singer\u2019s biological children. According to the agreement, the biological children did not contest their father\u2019s Californian will, that is, they waived the inheritance in order to avoid assuming its obligations. Thus, the only remaining beneficiary was the widow. <\/p>\n\n Summary<\/strong><\/p>\n\n Based on the above, it is apparent that it is worth taking legal advice in time for the purpose of making a will and seeking the assistance of a lawyer or notary, because only in this way can it be presumed that the last will of the deceased will be fulfilled as intended.<\/p>\n\n If you need advice related to the transfer of assets in the event of your death, or you have a question or request regarding the preparation of a specific will, you are interested in estate planning, or legal assistance is needed in an already ongoing probate procedure, then please do not hesitate to contact our Office.<\/p>\n\n Dated: Budapest, 10 05 2026<\/p>\n\n <\/p>\n","protected":false},"excerpt":{"rendered":" In our globalized world, it is no longer considered exceptional that members of a family live in different countries. Along with this, it is also increasingly common that assets \u2013 bank accounts, real estate, savings, etc. \u2013 are distributed across several countries. However, this situation gives rise not only to opportunities but also to some […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[],"class_list":["post-770","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"yoast_head":"\n