bronty

This has always affected my family, and legislation is well over due. Time will tell if there is any progress.
On Monday 12 March MEPs will discuss legislation that will make it easier to settle inheritances and avoid disputes by clarifying which court is competent and what law applies in these cases. They will vote on it the following day. Cross-border inheritances make up 10% of all successions in the EU. As every member state has different succession laws, it can be difficult to know what law should apply or which court is responsible when the deceased has lived in more than one country.The European Commission is proposing to make things easier.
Under the proposal where people live would determine what jurisdiction and law applies to a cross-border succession. However, people would also have the option of choosing the laws of their home country instead. It will also establish a European Certificate of Succession to enable people to prove without formalities their capacity as heir or their powers as administrator or executor of a succession. Nothing will change for people who live in their home country. People who live in another part of the EU will be able to choose which country's laws should apply to their succession.
However, this new regulation will not affect the UK and Ireland as they opted out.

bronty

The Lechner report was passed with 589 votes in favour, 21against and 79 abstentions. Parliament and Council have reached an informal agreement that will have now to be confirmed for the legislation to enter into force:

The proposed regulation would introduce two new principles for dealing with international successions.

First, if someone dies in a Member State that is not their home country, their succession would generally be dealt with under the law of the Member State where they last had their place of "habitual residence", by the courts and authorities of that Member State. This would avoid conflicts that could otherwise arise if several courts in different Member States declared themselves competent.

Second, the person drawing up a will would also have the option of having his or her will read under the law of his or her Member State of origin. This would give EU citizens a new right, which MEPs believe would be a major improvement, as it would allow anyone living abroad within the EU to retain close links with their home country and ensure that specific national provisions, such as rules governing gifts made during a lifetime, are respected

The regulation would not apply in UK and Ireland, as their respective governments decided to exercise their right to opt out. I understand this as all UK and Irish nationals living in Hungary will be governed by the law of Hungary and will have to provide a Hungarian will. I have asked for further clarification on this matter and will let you know.

bronty

I have had a reply, and all UK and Irish citizens living in Hungary will require a Hungarian Will as per the Hungarian laws, regarding any assets and bequests relating to Hungary. From past experience, I would suggest that you make a will in Hungary, the laws are slightly different to that of the UK.

Rural Hungary

I am somewhat confused

Am I correct in that, before the new regulation, a British citizen residing in Hungary could have a will written based on UK law. However, in the case of immovable assets, UK law refers back to Hungarian law and therefore this would be relevant?

Does the new regulation now void previous wills based on UK law and require residents to have a will based on Hungarian law - again, confused

klarika

I have also had quite a few conversations now with Hungarian solicitor's some that speak English and they say that if you are a British Citizen the English Law can apply if you so wish. I have also wrote to the British Embassy to confirm this. We also have will's in Spain and it is exactly the same if there is no will the Hungarian law will apply.

Rural Hungary

I have just been told the following and am now extremely pleased that I have no intention of making a will

UK wills only cover the UK because they opted out of the
cross border agreement. Hungarian wills will only cover Hungary. I know
this because I actually wrote to Brussels for clarification.
When my mother died, they would not accept an English will even in court. We were originally told by a solicitor that it would be valid.......
So it turned out that regarding her Hungarian assets she
died in probate, ie no will!
According to Hungarian law all the inheritance goes to the children equally divided, but the remaining spouse should be allowed to live in a property as long as they live or agree to
the children selling and splitting the money. The problem is that some
these solicitors have probably never dealt with anything like this, and
they have the mentality that they know everything and are always right,
regardless what you do or say.

bronty

Regarding the above it should be 'intestate' not in probate.

klarika

Bronty,

I am getting so much conflicting information emails, telephone calls even a reply from EEU cross boarder inheritance. and still feel non the wiser. Are you saying it's not worth having a will over here or it is?

bronty

If you have Hungarian assets, get a Hungarian Will done. An English Will covers only English assets. The UK has opted out of the cross border inheritence agreement, though I get the impression that the Hungarian solicitors believe that the UK is the same as other european countries. This is not the case.

Rural Hungary

As I understand it:

Regards property, it doesn't matter whether the new regulation states that Hungarian law must be applied to both movable and immovable assets.

As it stands, UK inheritance law actually provides that the disposal of immovable property (land and buildings being the main ones) abroad is governed by the law of the country where the property is situated (other rules apply to movable property such as bank accounts and investments). So UK law actually says that Hungarian law should regulate the inheritance over a Hungarian property.

Rural Hungary

For those with property in Spain, I suggest reading this as apparently, if you are a UK citizen with assets in Spain but residing in a third country, the inheritance laws can be different.