The contract of succession has greater legal force than a will, which always takes precedence over it. This means that if the testator has made both a will and a contract of succession, the succession is governed first by the contract of succession and then by the will.
Ways of settling an inheritance
- Inheritance by succession
- Succession contract
What are the advantages of a succession contract?
The contract of inheritance must be concluded in the form of a public deed – a notarial deed, and the testator calls the other party or some third person as heir and the latter accepts it.
It is a bilateral legal arrangement which the testator cannot unilaterally revoke or cancel, at the same time it does not restrict him to dispose of the property during his lifetime and he can transfer it to a person other than the contracting heir.
Another advantage is the fact that the succession contract can stipulate various conditions, such as the heirs reaching a certain age, completing their education, etc.
Did you know that no more than ¾ of the deceased’s estate can be dealt with by a contract of inheritance, the rest is dealt with by will or goes to probate?
Our tip: An inheritance agreement is a smart way to settle the ownership and transfer of a property before your death, while saving your heirs from future arguments and disputes.
What about inheritance tax?
Inheritance tax has been formally abolished, you must include the assets you inherit in your income tax. As an heir, however, you are exempt from tax.