Within the European Union, the EU Succession Regulation governs which national law applies in cases of inheritance with an international element.
With a holiday apartment in Tuscany or a finca in Mallorca, many people fulfill their dream of a sunny residence in old age. However, this can have effects in the event of inheritance. If the deceased, for example, owned a house in Germany and an apartment in Spain, the question arises as to which national inheritance law is applicable.
In cross-border succession cases within the European Union, the EU Succession Regulation determines which national inheritance law is to be applied. As the law firm MTR Rechtsanwälte explains, the law of the country where the deceased had their last habitual residence applies. With the introduction of the EU Succession Regulation, the principle of habitual residence has replaced the nationality principle. If the last habitual residence is, for example, in Spain, Spanish inheritance law applies. If it is in Germany, German inheritance law applies.
Within the EU, around 500,000 cross-border succession cases are counted annually. In these cases, heirs may live in a different country than the deceased, or the deceased may also have a residence abroad in the EU. The Succession Regulation now stipulates that the domestic law applies in which the deceased had their last habitual residence.
Testators should consider that national inheritance laws can differ significantly and that this can impact statutory succession, inheritance shares, compulsory portion claims, gifts, usufruct rights, and other important aspects. It may also happen that dispositions in a will are not valid abroad in the EU. Wills that have already been made should therefore be reviewed for the effectiveness of the dispositions if the habitual residence is relocated to another country. For example, the Berlin will or spousal will, which is popular in Germany, is not known in every EU member state, so it could be considered ineffective.
On the other hand, the Succession Regulation and the application of another state’s inheritance law also offer room for maneuver that can potentially be utilized. If the testator wishes for the national inheritance law of their home country to apply, they can stipulate this in their will.
Lawyers competent in international inheritance law can provide advice.
