On 17 August 2015, the European Succession Regulation came into force. As a result, the inheritance and settlement of a cross-border estate within almost all EU countries (with the exception of Denmark, Ireland and the United Kingdom) can become considerably simpler and less costly. This is good news for Dutch nationals with a (second) home elsewhere in Europe. Thanks to the Regulation, the property can be inherited under Dutch inheritance law.
Until now, heirs have had to contend with all sorts of complicated rules and time-consuming procedures in the various European countries. After all, every country has its own rules of inheritance law. A will drawn up in one country was not automatically valid in another. As a result, it was not always clear which inheritance law applied upon a person’s death.
With the introduction of the European Succession Regulation, a single set of succession laws applies to the administration of a cross-border estate, regardless of where the assets of the estate are located. Under the Regulation, the general rule is that the law of the country in which the deceased had their habitual residence at the time of death applies to the estate. Furthermore, the Regulation allows you to choose, by will, to apply the law of the country of which you are a national. Dutch nationals who own a (second) home in France therefore have the option of choosing Dutch law.
Another new development is that an heir can obtain a so-called European Certificate of Succession from a notary. This enables, for example, a Dutch national in another Member State to prove that they are an heir. They will then not need to carry out any additional (administrative) procedures or go through legal proceedings to exercise their rights as an heir. With the European Certificate of Succession, your heir can not only access the balance of your Dutch bank account, but also any balances in accounts held in another EU country.
You will not have to deal with foreign inheritance law if you include a choice of law in your will! By making a choice of law, you can opt for the inheritance law that best suits your personal circumstances.
Would you like more information on this subject? Or are you wondering what the regulation means for you? If so, please feel free to get in touch with your contact at VWG.