This obligation was canceled 10 years ago. Currently, the only payment that must be transferred to the budget when a testator takes possession of the property is the state duty.
How it was and how it became
After the approval and publication of Federal Law No. 78-FZ of July 1, 2005. inheritance tax under a will was abolished. The year 2023, in terms of payments upon entry into the rights of the heir, is not burdened with any payments, except for the state duty.
Previously, in order to receive what was bequeathed, it was necessary to pay tax upon entering into an inheritance. The rate was calculated based on the degree of relationship if the value of the property received exceeded the minimum wage by more than 850 times. The heirs were identified in order:
- First priority: children, spouses and parents
- Second priority - brothers, sisters, grandparents
- Third priority - the remaining possible heirs not included in the first two groups
For each priority, the tax upon inheritance of an apartment or other property, the value of which was in the range of exceeding the minimum wage from 850 times to 1700 times the rate, was as follows:
- For first priority – 5% of the value of the property
- For the second stage – 10% of the value of the property
- For the third stage – 20% of the value of the property
As the value of the inheritance increased in terms of exceeding the minimum wage, the rates increased. At that time, there was an instruction in force created on the basis of a number of Federal laws regulating the procedure for registering and entering into inheritance.
Is inheritance taxable now? Not in the generally accepted sense of the word. When they mean inheritance tax under a will in 2023, this means that we are talking specifically about a duty. As for modern legislation, in matters of inheritance, Chapter 63 of the Civil Code of the Russian Federation has priority.
Inheritance by law
- A will has not been drawn up
- The will makes instructions regarding the inheritance of certain property, and the rest must be divided according to law
- The text of the will contains instructions about complete or partial disinheritance
- The court found that the will is fully or partially invalid
- Lack of heirs under the will
- The heirs refuse the inheritance or transfer it to other persons entitled to this property
- Heirs are excluded from the right to receive property under the will
- If the property is recognized as escheat - in the absence of heirs by law
The main factor giving the right of inheritance is kinship . Civil legislation clearly establishes the order of priority (Articles 1142-1145, 1148 of the Civil Code of the Russian Federation). According to the letter of the law, each successive line has the right to inherit in the absence of representatives of the previous one. This means not only the physical absence of heirs (the person was not married, had no children, etc.), but also the following cases:
- Heirs of the previous line were deprived of a will
- Heirs of the previous line were excluded from inheritance
- Not a single heir from the queue declared his right to inheritance
- The heirs of the previous line wrote a refusal of inheritance
In this situation, the heirs are replaced by other persons entitled to inheritance.
Inheritance by right of representation - in the absence of a will. Occurs when the heir dies before the will is opened. Inheritance by right of representation also occurs in order of priority.
In addition to inheritance in the order of priority and by right of representation, the legislation establishes the circle of persons who have the right to inheritance without fail . The list is listed in Art. 1149 of the Civil Code of the Russian Federation. These include:
- Disabled first degree relatives
- Minors and disabled children
- Disabled dependents entitled to intestacy
Inheritance by will
The owner of the property legally transfers the right of disposal to the person specified in the will. A citizen has the right to dispose of his property as he pleases, dividing it into equal and unequal parts among several heirs, completely transferring everything to one heir. These persons may not be his relatives. Property can be bequeathed in favor of organizations and the state.
The will must be certified:
- Notary
- Local executive authority
- By the Consulate of the Russian Federation when staying in the territory of another state
The will is drawn up in two copies . In some special cases, a will is recognized as a simple written will of the dying person, if it is not possible to certify it. It must be handwritten and signed by the testator in the presence of two witnesses.
A closed will reveals its contents only after the death of the testator . At the time of preparation and certification, no one, including a notary, can familiarize themselves with it. The notary opens the envelope with such a will, previously handed over to him personally from the testator in the presence of witnesses, upon presentation of the death certificate within 15 days.
The will may make special provisions. Legally, this sounds like sub-appointment of an heir. This means that if the primary heir dies before the will comes into force, the second heir named in the document inherits his share.
Also in legal practice there is such a thing as testamentary refusal. An heir who receives property under a will must fulfill certain obligations upon receiving the inheritance. This may be forgiveness of a debt to the legatee (the person in whose favor the legacy is made), payment to him of a certain amount, or alienation of part of the property.
Inheritance tax under a will
A direct tax that is levied directly on the income of an individual is personal income tax. Article 217 of the Tax Code of the Russian Federation stipulates that property received under a will is not subject to tax. In 2023, inheritance under a will is subject to only indirect tax, which is a state duty upon entering into an inheritance , as well as a fee for services for registering inheritance in property.
Therefore, the answer to the question “is inheritance taxable” is “yes”. Although it is unusual to consider a duty a tax. When issuing a certificate of inheritance, the fee will be deducted according to the following values:
- For heirs of the first and second stage – 0.3% of the value of the property
- For heirs of other queues – 0.6%
These rates are also relevant for inheritance by law. The amount of state duty does not depend on the type of property. It does not matter whether you need to pay indirect tax when inheriting an apartment, car or material assets.
An exception to the payment of state duty upon inheritance are certain categories of citizens:
- Heroes of the Russian Federation and the Soviet Union
- WWII veterans
- Full Knights of the Order of Glory
Taxation of the property itself
After the inheritance is received, the heir becomes obligated to pay tax on the property itself, since he is now its owner , if we are talking about real estate, transport tax - for vehicles and land tax - for plots. Taxation of inheritance occurs within the framework of tax legislation. Each tax has its own payment deadlines.
After registering the heir as the owner of the property, the data is sent to the tax office. In accordance with the received object of taxation and its quantitative indicator (area, inventory value, number of horsepower), tax is calculated. Within the time limits regulated by law for the tax period, the heir transfers contributions to the budget.
Bottom line
The 2023 inheritance tax is a state tax. It is calculated at the rates established by Article 217 of the Tax Code of the Russian Federation for inheritance by law and by will. The inheritance tax was abolished by Federal Law No. 78-FZ of July 1, 2005. The received property is subject to taxation in some cases.
How to register an inheritance in Ukraine and legally inherit an apartment, house, land
The rules for registering inheritance for real estate in Ukraine have undergone changes
Tips on how to register an inheritance in Ukraine and legally inherit an apartment, house, land
The lawyer told the capital's real estate portal 100realty.ua in detail how to register an inheritance in Ukraine and inherit an apartment , house, land and other real estate.
The legal expert explained a number of key points for registering an inheritance under the law of Ukraine:
- how to inherit legally
- what is the order of inheritance
- how to inherit under a will
- The deadline for entering into an inheritance has been missed - what to do?
- how much to pay when entering into an inheritance and is it necessary to carry out a real estate appraisal upon inheritance?
- innovations in laws when entering into inheritance in Ukraine.
Below we provide explanations on how to register an inheritance in Ukraine in 2023.
How to inherit legally
When must documents be submitted?
The inheritance opens after the death of a person or declaring him dead. The place of opening of the inheritance is the last place of residence of the deceased. If the exact place of residence of the testator is unknown, then the inheritance is opened at the location of the real estate or its main part.
Related article: Changes in real estate legislation: what you need to know to conclude a purchase and sale transaction in Ukraine
Within 6 months after the opening of the inheritance, the heirs must provide the notary with the following documents:
- confirming relationship (in particular, a birth certificate);
- confirming the fact of death of the testator (death certificate and certificate of cause of death)
- documents on ownership of real estate that are part of the inheritance;
- identification documents of heirs (passport and TIN)
- if necessary – valuation of inherited property (if taxes arise)
- application for acceptance of inheritance.
The deadline for inheriting real estate has passed - what to do?
an application to accept the inheritance within 6 months , he is considered not to have accepted it.
With the written consent of the heirs who accepted the inheritance, the heir who missed the deadline may submit an application for acceptance of the inheritance to a notary (in rural areas - to an authorized official of the local government at the place where the inheritance was opened).
Upon the claim of an heir who missed the deadline for a good reason (did not know about the death, was not outside Ukraine, etc.), the court may determine an additional period for him to submit an application for acceptance of the inheritance.
Related article: Property tax in 2023: how much and to whom to pay
What are the inheritance queues?
First priority of heirs by law
First of all, the right to inherit according to the law belongs to the children of the testator (including those conceived during the life of the testator and those born after his death), the surviving spouse, and parents.
Second line of heirs by law
The second line of heirs by law are the testator’s siblings, his grandmother and grandfather on both the father’s and mother’s sides.
Third line of heirs by law
Thirdly, the right to inheritance according to the law belongs to the testator's uncle and aunt.
Fourth line of heirs by law
Fourthly, the right to inherit by law has persons who lived with the testator in the same family for at least five years before the opening of the inheritance.
Fifth line of heirs by law
- Fifthly right of inheritance by law have other relatives of the testator up to the sixth degree of kinship inclusive, and relatives of a closer degree of kinship exclude relatives of a distant degree of kinship from the right to inherit.
The degree of relationship is determined by the number of births that separate the relative from the testator. The birth of the testator himself is not included in this number.
- Fifthly, the right to inherit according to the law is received by the testator’s dependents who were not members of his family.
A dependent is considered to be a minor or disabled person who was not a member of the testator’s family, but who received financial assistance from him for at least five years, which was her only or main source of livelihood.
Related article: Registration of place of residence in Ukraine according to new rules: how it affects the real estate market
How to inherit by will
To enter into an inheritance under a will, you must submit the following package of documents:
- death certificate and certificate of cause of death;
- documents on ownership of real estate that are part of the inheritance;
- identification documents of the heirs (passport and TIN);
- if necessary, assessment of inherited property (if taxes arise);
- application for acceptance of inheritance;
- will.
Who has the right to inherit an apartment, house and land, except for the people specified in the will
- Minors, minors, adult disabled children of the testator, disabled widow (widower) and disabled parents receive half of the inheritance, regardless of the contents of the will, which would be due to each of them upon inheritance by law (mandatory share).
The size of the obligatory share in the inheritance may be reduced by the court, taking into account the relationship between these heirs and the testator, as well as other circumstances of significant importance.
- The compulsory share in the inheritance includes the value of things of ordinary household furnishings and household items, the value of the testamentary disclaimer established in favor of the person entitled to the compulsory share, as well as the value of other things and property rights that passed to her as an heir.
- Any restrictions and encumbrances established in the will for an heir entitled to an obligatory share in the inheritance are valid only in relation to that part of the inheritance that exceeds his obligatory share.
Payments and costs for registration of inheritance in Ukraine
Upon entering into an inheritance, if there are obligations to pay personal income tax, the heir pays 5% of the market value of the property. A non-resident heir of Ukraine pays tax at a rate of 18%. Payment of a military tax of 1.5% is required in both cases.
For issuing an inheritance certificate, you must pay a state fee - 2 non-taxable minimum incomes of citizens (currently 34 UAH). Notary services are paid according to his tariffs.
Related article: What has changed since January 1, 2023 in Ukraine - all the innovations in legislation
According to the latest changes in legislation, heirs of the second stage are exempt from paying taxes when registering an inheritance in Ukraine.
Valuation of real estate upon inheritance
Valuation of real estate during inheritance is necessary if the heir is a non-resident, as well as if the heir does not belong to the first or second line of heirs by law.
What you need to pay when entering into an inheritance: state duty for issuing a certificate of title, taxes | Legal Advice
Last updated March 2023
Inherited property is transferred to the heir free of charge, but the procedure for entering into inheritance itself is not free. Below you will find out whether you need to pay inheritance tax, in what amount, as well as what other expenses you can expect when entering into an inheritance.
There is no inheritance tax. However, there is a special case: when you still need to pay. If monetary rewards are transferred as an inheritance to the heirs of the authors:
- works of science;
- literature;
- art;
- discoveries;
- inventions;
- industrial designs.
This tax is 13% of the amount received.
You will also have to pay personal income tax in the amount of 13% to those who sell inherited property within a three-year period after the death of the testator (the starting date is the day of the death of the testator, and not the day of acceptance of the property). There is no contradiction to the law in this, since the tax is paid not for accepting an inheritance, but for receiving income from the sale of an inheritance.
State duty when registering an inheritance in 2023
Its exact amount is not established by the Tax Code, since for each specific situation the calculation is individual, based on:
- degree of relationship between the heir and the testator;
- property value;
- type of property.
- Thus, for heirs of the 1st and 2nd stages (spouses, children, parents, brothers, sisters, grandparents), the state duty upon entering into an inheritance is equal to 0.3% of the value of the inheritance .
- For subsequent heirs, as well as non-relatives of the deceased, the amount of state duty is 0.6% of the value of the property being inherited.
- In this case, the amount of state duty should not exceed:
- in the first case – 100,000 rubles;
- in the second – 1,000,000 rubles.
The fee is paid through the bank. Other payments, such as technical and legal services by transferring money directly to the notary.
What cost is taken to calculate the state duty?
At the choice of the heir, any of the following types of property value can be taken to calculate the amount of state duty:
- market;
- cadastral;
- inventory
They are not equal to each other, which means that the amount of duty that will have to be paid for entering into an inheritance depends on their choice.
For the most part, this choice of values applies to real estate. For other property, only market value can be used, for example, for cars.
To better understand this issue, we suggest that you familiarize yourself with the table.
| Size | How to find out | Confirmation document | |
| Market | The tallest | An independent appraiser conducts an examination | Documentary conclusion |
| Cadastral | Usually below market value, but above inventory value | In Rosreestr | Certificate or cadastral passport |
| Inventory | Lowest | In BTI | Reference |
It is most profitable to use the inventory value, however, since 2013, the legislation has been changed and the cadastral value should be used to calculate taxes. This was due to the fact that the cadastral price is as close as possible to the market price, and the inventory price is 10 times less than the latter. In this regard, significant amounts are “underreceived” from the budget.
State duty for inheritance
Entering into an inheritance is a process that is not only time-consuming, but also costly. The amount of payment for registration of inheritance rights directly depends on the value of the property and the closeness of the relationship with the deceased. It is difficult to say exactly how much the heir needs to be paid. However, let's try to figure it out...
How much to pay for inheritance?
So, how much should the heir pay to obtain a certificate of inheritance? The question is controversial, there is no clear answer to it.
The fact is that the cost of registering an inheritance according to law or will will be different for each individual case. It consists of several components:
- state fee for obtaining a certificate of inheritance;
- payments for obtaining missing certificates, extracts and other documents;
- payment for notary services for assistance in preparing documents, making requests, and providing additional consultations;
- payment for the services of a representative who draws up documents for the heir under a power of attorney.
All payments, except for the state duty, are optional and arise only in certain cases.
Thus, the state duty differs from all other expenses of the heir in its obligatory nature. However, it is not, most often, the only payment that arises in the process of registering an inheritance.
State duty for inheritance under law and will
The amount of state duty directly depends on many factors that are formed during the registration of inheritance rights.
The parameters by which the cost of the duty obligatory for payment is formed do not depend on the heir. However, he must be paid regardless of his will. The mandatory amount of state duty has been established:
- in the amount of 0.3% of the total amount of property received by inheritance. Payment of a fee in this percentage is obligatory for relatives who occupy the first and second steps of the inheritance line. However, in any case, the amount of the duty cannot exceed 100,000 rubles. An interest rate is calculated on the value indicated in the appraisal;
- In the amount of 0.6% of the value of the property indicated in the assessment. Such a duty is established for payment by all other heirs. However, the final fee cannot exceed 1 million rubles.
The assessment, which is the main criterion for calculating the amount of the duty, must be valid on the date of death of the testator.
Such rules are established in the Tax Code of the Russian Federation and are mandatory. If we analyze these provisions of the Code, it is clear that the main parameters for calculating the state duty are:
- close relationship between the heir and the testator;
- the value of property received by inheritance, indicated in the assessment.
A receipt for payment of the state fee is required to be presented to the notary.
The issuance of a certificate of inheritance in the Tax Code is designated among the notarially significant actions, which is why a fee is charged for it.
Notary fee upon entering into inheritance
In addition to paying the fee, the heir sometimes needs to pay the notary for performing actions of a technical nature. A specific tariff rate is not specified in any document or law of the Russian Federation. However, there is also no prohibition on committing such actions and charging some fee for it.
For this reason, notaries provide some assistance in registering an inheritance. What is the fee for this? Each notary is different, but the difference is usually insignificant.
Types of activities for which an additional fee may be charged by a notary may include:
- assistance in obtaining documents necessary for registration of inheritance. For example, a notary, at the request of the heir, can independently send out requests and prepare the necessary certificates;
- consulting services in favor of the heir;
- other technical actions.
Thus, the state fee must be paid by each heir without fail. Other payments may arise during the registration of inheritance rights and are not mandatory. However, assistance from a notary, paid in accordance with the tariffs established by him, can greatly facilitate the task of the heir when preparing documents.
Registration of inheritance in Ukraine: terms, rules, procedure. Entry into inheritance
Most Ukrainians do not know what registration of inheritance is. Many people are not at all aware that real estate and other assets that are inherited need to be formalized somehow. Who can claim an inheritance, and in what cases? How to register the right to inheritance? How much do you need to deduct in taxes? It is important to understand all this before registering the inheritance in order to avoid misunderstandings.
CONTENT
Registration of inheritance according to the law Registration of inheritance according to a will Registration of inheritance after a six-month period Who pays what taxes and what costs, cost of registration
Legislation is ignored in small towns and villages, while in Kyiv and large cities the level of legal culture is high.
Precedents regarding inheritance do not happen often, but still, unpleasant proceedings involving the court do occur. This happens mainly with distant relatives who do not even suspect that they can lay claim to an inheritance.
As a result, property goes not to those who need it most, but to those who have shown greater enterprise.
Procedure for registration of inheritance
You can receive an inheritance by law and by will. The first option is practiced if the testator did not make a will during his lifetime.
Registration of inheritance according to law
According to the law of Ukraine, the inheritance is distributed among the heirs in turn. The stages of the queue include relatives up to the sixth degree of kinship inclusive. Each subsequent line is called upon if the heirs of the previous line did not accept the inheritance, refused it, or were excluded from inheritance for some reason.
In addition to relatives, heirs are considered to be persons who lived with the heir in the same house for the last five years before the opening of the inheritance.
This also includes minors and disabled persons who are not relatives of the testator, but who were in his care. Adoptive parents and adopted children can claim inheritance on equal rights.
The inheritance most often includes an apartment, house, land, garage, car, and other movable and immovable property.
Who can get what share?
According to the law, relatives of the same degree of relationship claim equal shares of the inheritance. The size of the share can only be changed by the heirs themselves, having previously agreed on this among themselves and having legally certified the agreement. Such cases often apply to real estate, since it is physically impossible to divide it.
The shares of the heirs can also be changed through the court. For example, justice can give a larger share to someone who has been caring for the testator for a long time or supporting him financially. Only a notary can confirm the rights of the heir, who must issue a certificate of the right to inheritance. The price of a notary service may vary.
It depends on many factors.
If you suspect the right to receive an inheritance, you must immediately begin to obtain such rights. To do this, you need to contact a notary within six months from the date of death of the testator and present your rights. Otherwise, the property will be divided by other relatives without your participation.
Registration of inheritance by will
Any person during his lifetime can make a will on how his property should be disposed of after death. By will, property can be transferred to one or more people, including non-relatives. A will also allows you to transfer property to legal entities and the state.
Making a will differs in each country. According to lawyers, a will complicates the process of heirs receiving an inheritance. If inheritance by law has strictly defined boundaries and rules of priority, then a will can be drawn up for any person, organization or state.
In a will, the testator can disinherit any of his relatives without even explaining the reasons. Only disabled or minor heirs cannot be deprived of the right to inheritance by a will. Regardless of the contents of the will, they have an advantage.
The law provides for a public or secret will. No one, not even a notary, knows about the composition of the last testator before his death. The latter only controls the procedure when the testator seals what is written in an envelope and signs it.
The envelope with the secret will is kept by the notary until the death of the testator. After this, it is opened in the presence of interested parties and two witnesses. At the same time, a protocol is drawn up confirming the proclamation of the will.
After this, even if the will is physically destroyed, the will of the testator must be executed.
Rules for registering inheritance under a will
A will is only made when the testator plans to leave an inheritance to a specific relative or other person. The document is drawn up personally by the testator, who is of sound mind.
Also, the document can be written by a notary from the words of the testator in the presence of witnesses.
The concept of “spousal will” applies to joint property.
So, if a plot of land or an apartment was purchased by spouses during marriage, they are common property and can be included in a joint will. However, the composition of the will cannot be changed after the death of one of the spouses.
There are also wills that give the heir the right to use property only under certain conditions. For example, in order to receive an inheritance, an heir must graduate from a university or get married. Sometimes wills provide for inheritance to be passed on to grandchildren when they reach adulthood. Such measures protect heirs from the malicious intent of other potential heirs.
If necessary, not only a notary can certify a will. Representatives of city or village councils, chief physicians and doctors on duty at the place of treatment of the testator, as well as commanders of military units have this right.
How to register an inheritance in Ukraine
In addition to the application for acceptance of the inheritance, the notary is provided with a package of documents:
Depending on the circumstances of each specific case, the notary may request additional documents.
Experts do not advise delaying the preparation of inheritance documents. In Ukraine, it is a common practice for heirs to live in the testator’s apartment, considering themselves automatic successors to the property.
Then, after the six-month period, it turns out that other relatives are also applying for the apartment. If these relatives complete the documents faster, then they will get the property.
After this, it will be possible to challenge the right to inheritance only through the courts.
Within six months after the death of the applicant, any heir can declare his rights to the inheritance. The notary's task during this period is to check whether the property being inherited actually belonged to the testator.
If ownership is truly proven, the notary determines who is entitled to inheritance and in what quantities. After the lawyer issues a certificate of inheritance, it must be registered with the BTI.
How to register an inheritance after six months
Registration of inheritance after the death of the testator has its own nuances. If six months after the death of the testator, the heir has not filed an application for inheritance and if he has not been registered at the same place of residence as the testator, such heir is considered to have not accepted the inheritance.
In this case, the heir can receive the inheritance only with the consent of the other heirs. The court may set an additional period for receiving the inheritance, but only if the six-month period was missed for a good reason.
Confirming the right to inheritance through the court is a lengthy and expensive procedure.
Valid reasons for extending the deadline
According to the latest changes in Ukrainian legislation, the heir who accepted the inheritance can be considered a person who did not submit documents for the inheritance, but who in fact took possession of the inherited property.
If a notary refuses to formalize an inheritance, he is still obliged to issue a decision refusing the notarial act in writing.
After this, he is obliged to go to court so that the heir’s right of ownership is recognized.
Inheritance tax
According to the law, inheritance is a type of income that heirs receive. In this regard, inheritance registration services are subject to tax. To find out the amount of the amount to be paid, a property valuation is needed. Such services also cost money.
Who pays what taxes and
Upon entering into an inheritance, the payment of state taxes falls on the shoulders of the heirs. A notary can only inform the tax authorities about to whom the inherited property was registered.
Residents of Ukraine can pay inheritance tax both before and after the issuance of a certificate of inheritance. When paying tax after the certificate is issued, the person must submit an income declaration to the tax office at the place of residence by May 1 of the following year.
Then he must pay the tax itself directly by August 1. Non-residents of Ukraine must pay tax before the certificate is issued.
Cost of registration of inheritance
According to Ukrainian legislation, there are three types of rates for paying inheritance tax:
Inheritance taxes in Ukraine are fair compared to Western countries. However, even under such conditions, some manage to evade paying taxes. Lawyers warn that this is absolutely forbidden.
The notary who is handling the case is obliged to transmit information about the transfer of inheritance to the tax office. Even those persons for whom a zero rate is provided must enter the funds received into their tax return.
Certificate of right to inheritance
This is a document confirming the right to a share in the inheritance; it describes its size. If several successors claim the inheritance, all of them receive a certificate of the right to inheritance. Changes may be made to the document in the event of redistribution of the inheritance, for example, with the appearance of other heirs.
If relatives independently agree among themselves who receives what share, it is necessary to submit a written application with a request to make changes to the notary’s office. If the heirs cannot come to a common opinion among themselves, then at the request of one of them the decision will be made in court.
Based on the court decision, the notary issues new certificates of the right to inheritance to all heirs, including new ones.
In what cases is a certificate of inheritance considered invalid?
Usually the law is on the side of persons who have an obligatory share in the inheritance. These are minors, disabled people, disabled widows/widowers and parents. However, if their involvement in the cases described above is proven, they will also be deprived of their certificate of inheritance.
One of the parties to a marriage cannot receive rights to inheritance if the marriage has been declared invalid by a court. A certificate of the right to inheritance under a will may be declared invalid if the will itself, in turn, was also declared invalid.
- If none of the heirs is against their share in the inheritance and if there is no reason to recognize the certificate of the right to inheritance as invalid, the certificate of the right to inheritance is subject to mandatory registration in the Unified Register of Wills, Inheritance Agreements and Inheritance Cases.
- Regulatory acts governing the procedure for inheritance
How much is an inheritance worth?
In Latvia, it is generally accepted that a will was invented so that the heirs of millions could more easily divide the luxury real estate and oil assets of the deceased.
But even if you are the owner of untold wealth, you should not neglect drawing up a will. At least in order to avoid a showdown between relatives after your death.
When is it time to make a will?
The plots of many films and very real life stories unfold around making a will and receiving an inheritance.
Let us recall, for example, the legendary film “Limousine the Color of the White Night,” in which a Zhiguli car won in the lottery becomes a real bone of contention that numerous relatives cannot divide among themselves. Aunt Mirta was very fond of writing wills and changed them depending on the “behavior” of this or that relative.
Regardless, it was her conscious choice. Perhaps it was this film that formed the opinion that drawing up a will is one of the last tasks of earthly life and it should be written at a time when the end is already near. In fact, this is not entirely true.
Our expert, Chairman of the Council of Sworn Notaries of Latvia Janis Skrastins , believes that the decision to write a will depends on the maturity of the person and the amount of property he has acquired.
If there is nothing behind your soul - no money, no debts, then there is no need to write a will, and if you have managed to accumulate something during your life, then you should think about a will in a timely manner. Remember that the will can be changed at any time, and you will always know that when the irreparable happens, your property will not become a subject of contention between relatives. So, if you have something to bequeath to whom, then it’s better not to delay it.
How much does it cost to make a will?
Latvian legislation provides for three methods of inheritance: by law, when property is divided between relatives, by will, which is a unilateral decision, and by inheritance agreement, which is signed by all involved parties.
Remember that when inheriting by law, your partner, with whom the relationship has not been registered, will not be able to claim part of the property. The children whose guardian you are will not be entitled to anything. In these cases, you can leave an inheritance by drawing up a will or an inheritance agreement.
In this case, the heirs will have to pay personal income tax, which relatives do not need to pay. Therefore, from this point of view, it is more profitable to formalize the relationship - register the marriage and adopt children.
It should also be taken into account that the spouse and children are irrevocable heirs and may demand that they be paid from the inheritance half of what they would have been entitled to by law if there had been no will.
Therefore, if you leave your property to a neighbor or common-law wife, they will have to pay half the value of the inheritance to relatives in equal shares. However, in some cases provided for by the Civil Law, the testator may deprive the heirs of even their obligatory share.
How much does it cost to leave an inheritance?
If you adhere to the letter of the law and are confident that the children will not quarrel after your death, you can do nothing and, accordingly, not pay for anything. Registration of a private will, which is not certified by a notary, is also free.
Such a will will be taken into account when dividing the inheritance. However, there is no guarantee that it will be drawn up legally, and this may cause disagreements.
Notary services in the case of drawing up a will will cost 57.50 euros, and in the case of concluding an inheritance agreement - 117.93 euros.
How much does it cost to inherit?
The inheritance tax rate varies depending on the degree of relationship and the value of the inherited property. Thus, the closer the heir is to the testator, the lower the tax. In addition, if the heir at the time of the inheritance lived with the testator and was declared in the apartment left to him as an inheritance, the tax rate will be lower.
In turn, if the property was left to a spouse or other close relative by will, the fee for its registration in the Land Register is halved.
For example, if a spouse legally inherits real estate worth 51,000 euros, then he will have to pay 418.84 euros, including state fees, for conducting the inheritance case and registering ownership rights.
However, if you inherit the property of someone you are not related to, you will have to pay more. But you can look at this from the other side.
For example, someone bequeathed to you their apartment worth, say, 17,000 euros. Conducting an inheritance case and registering property rights, including state fees, will cost you approximately 3,000 EUR.
For this money you will receive ownership of an apartment, the market price of which is much higher.
Are debts inherited?
Another good reason why people delay registering an inheritance is the debts of the deceased. It is important to know that along with the inheritance, the heirs also take over all debts and other financial obligations of the testator.
As the results of a survey conducted by the Swedbank Institute of Finance show, the majority of respondents know about this, and only a fifth of respondents are not informed that inheritance also includes the inheritance of debts.
However, the experience of sworn notaries suggests that only a small part of residents know how to insure themselves against potential troubles when entering into an inheritance.
If the amount of the testator's debts exceeds the value of the inherited property, then the heirs must cover the difference from their own funds. Often, heirs, when accepting an inheritance, have no idea about the debts of the testator.
Finding out this is also not so easy. However, you can use straw! The fact is that the law gives the heir the opportunity to accept the inheritance with inventory rights.
In this case, the heir is responsible for the debts of the testator only within the framework of the estate.
Therefore, in situations where heirs begin to doubt whether it is worth entering into an inheritance at all, sworn notaries usually suggest people not to rush to refuse, but to take advantage of inventory rights.
If it turns out that the amount of the debts of the deceased exceeds the value of the inheritance, the heir will no longer be liable to creditors with his own property and will remain, as they say, “with his own.”
However, it should be noted that the heir must submit an application with a request to secure it in the rights to inheritance with inventory rights within two months from the date of the death of the testator.
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In Latvia, it is generally accepted that a will was invented so that the heirs of millions could more easily divide the luxury real estate and oil assets of the deceased.
But even if you are the owner of untold wealth, you should not neglect drawing up a will. At least in order to avoid a showdown between relatives after your death.
When is it time to make a will?
The plots of many films and very real life stories unfold around making a will and receiving an inheritance.
Let us recall, for example, the legendary film “Limousine the Color of the White Night,” in which a Zhiguli car won in the lottery becomes a real bone of contention that numerous relatives cannot divide among themselves. Aunt Mirta was very fond of writing wills and changed them depending on the “behavior” of this or that relative.
Regardless, it was her conscious choice. Perhaps it was this film that formed the opinion that drawing up a will is one of the last tasks of earthly life and it should be written at a time when the end is already near. In fact, this is not entirely true.
Our expert, Chairman of the Council of Sworn Notaries of Latvia Janis Skrastins , believes that the decision to write a will depends on the maturity of the person and the amount of property he has acquired.
If there is nothing behind your soul - no money, no debts, then there is no need to write a will, and if you have managed to accumulate something during your life, then you should think about a will in a timely manner. Remember that the will can be changed at any time, and you will always know that when the irreparable happens, your property will not become a subject of contention between relatives. So, if you have something to bequeath to whom, then it’s better not to delay it.
How much does it cost to make a will?
Latvian legislation provides for three methods of inheritance: by law, when property is divided between relatives, by will, which is a unilateral decision, and by inheritance agreement, which is signed by all involved parties.
Remember that when inheriting by law, your partner, with whom the relationship has not been registered, will not be able to claim part of the property. The children whose guardian you are will not be entitled to anything. In these cases, you can leave an inheritance by drawing up a will or an inheritance agreement.
In this case, the heirs will have to pay personal income tax, which relatives do not need to pay. Therefore, from this point of view, it is more profitable to formalize the relationship - register the marriage and adopt children.
It should also be taken into account that the spouse and children are irrevocable heirs and may demand that they be paid from the inheritance half of what they would have been entitled to by law if there had been no will.
Therefore, if you leave your property to a neighbor or common-law wife, they will have to pay half the value of the inheritance to relatives in equal shares. However, in some cases provided for by the Civil Law, the testator may deprive the heirs of even their obligatory share.
How much does it cost to leave an inheritance?
If you adhere to the letter of the law and are confident that the children will not quarrel after your death, you can do nothing and, accordingly, not pay for anything. Registration of a private will, which is not certified by a notary, is also free.
Such a will will be taken into account when dividing the inheritance. However, there is no guarantee that it will be drawn up legally, and this may cause disagreements.
Notary services in the case of drawing up a will will cost 57.50 euros, and in the case of concluding an inheritance agreement - 117.93 euros.
How much does it cost to inherit?
The inheritance tax rate varies depending on the degree of relationship and the value of the inherited property. Thus, the closer the heir is to the testator, the lower the tax. In addition, if the heir at the time of the inheritance lived with the testator and was declared in the apartment left to him as an inheritance, the tax rate will be lower.
In turn, if the property was left to a spouse or other close relative by will, the fee for its registration in the Land Register is halved.
For example, if a spouse legally inherits real estate worth 51,000 euros, then he will have to pay 418.84 euros, including state fees, for conducting the inheritance case and registering ownership rights.
However, if you inherit the property of someone you are not related to, you will have to pay more. But you can look at this from the other side.
For example, someone bequeathed to you their apartment worth, say, 17,000 euros. Conducting an inheritance case and registering property rights, including state fees, will cost you approximately 3,000 EUR.
For this money you will receive ownership of an apartment, the market price of which is much higher.
Are debts inherited?
Another good reason why people delay registering an inheritance is the debts of the deceased. It is important to know that along with the inheritance, the heirs also take over all debts and other financial obligations of the testator.
As the results of a survey conducted by the Swedbank Institute of Finance show, the majority of respondents know about this, and only a fifth of respondents are not informed that inheritance also includes the inheritance of debts.
However, the experience of sworn notaries suggests that only a small part of residents know how to insure themselves against potential troubles when entering into an inheritance.
If the amount of the testator's debts exceeds the value of the inherited property, then the heirs must cover the difference from their own funds. Often, heirs, when accepting an inheritance, have no idea about the debts of the testator.
Finding out this is also not so easy. However, you can use straw! The fact is that the law gives the heir the opportunity to accept the inheritance with inventory rights.
In this case, the heir is responsible for the debts of the testator only within the framework of the estate.
Therefore, in situations where heirs begin to doubt whether it is worth entering into an inheritance at all, sworn notaries usually suggest people not to rush to refuse, but to take advantage of inventory rights.
If it turns out that the amount of the debts of the deceased exceeds the value of the inheritance, the heir will no longer be liable to creditors with his own property and will remain, as they say, “with his own.”
However, it should be noted that the heir must submit an application with a request to secure it in the rights to inheritance with inventory rights within two months from the date of the death of the testator.
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