What are forced heirship rules
Forced heirship rules are the set of laws put in place by a country which enforces ‘partible inheritance’ of a deceased estate. Forced heirship generally operates in a way where the estate of the deceased is separated into two main sections; the first, is known as a indefeasible portion, while the second is known as the disposable portion. The first portion of the estate is passed to the survivors of the decedent while the second portion can be disposed of in accordance with the Will.
Establishing an offshore trust can help you to avoid forced heirship rules. Please click on the following link to view our Offshore Trusts service page.
Forced heirship rules explained
Forced heirship rules are not evident in every country worldwide and are typically only adopted by countries utilizing Civil Law legal systems. Under Civil Law, forced heirship is imposed on the estate of the deceased as the freedom to choose how your estate is divided and to who is not your right. This is also regarded as ‘no freedom of testation’ under Civil Law proceedings. Under Common Law regimes, forced heirship rules are not recognized however cases of surviving spouses may affect how the estate is distributed.
Although forced heirship rules defy the wishes of the deceased and divide the decesased estate in accordance with forced heirship rules, there is still a proportion of the estate which is safeguarded by the Will. The proportion of the estate which is divided up under forced heirship rules is known as the ‘forced estate’ and the heirs of this property and assets are regarded as ‘forced heirs’.
Forced heirship rules are extremely restrictive with respect to the freedom given to an individual to request how his/her estate will be divided up on their death. This is one of the primary reasons for setting up and offshore trust in a country where forced heirship rules are not recognised. An offshore trust will allow for the owner of the trust to settle his/her estate for the benefit of the beneficiaries he/she wishes.
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