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Questions and answers: wills and inheritance under Cypriot law.

Questions and answers: wills and inheritance under Cypriot law.

Questions and answers: wills and inheritance under Cypriot law.

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What is a will?

A will is a person's written statement of his/her intention regarding the disposition of his/her movable and immovable property upon his/her death. However, a person's right to dispose of his/her assets by means of a will is not absolute and is subject to certain restrictions under Cypriot law.

What laws govern wills and inheritance in Cyprus?

Wills and inheritance laws in Cyprus are governed by both local and EU law. The main laws of Cyprus are: The Law on Wills and Inheritance, Ch. 195, the Law on''Administration of Inheritance Estates, Ch. 189, the Law on Probate, Ch. 192. In addition, there is relevant EU legislation, namely Regulation (EU) 650/2012, which allows EU citizens to choose the law of their country of citizenship as the law governing their will.

What requirements must be met for a will to be legally valid.

The will must be in writing. The testator must sign the will at the bottom of the last page and initial each page of the will. The testator must sign the will in the presence of at least two witnesses, who must also sign the will in the presence of each other and the testator.

Can a will be revoked''will?

A will may be annulled by another will that expressly states that the previous will is annulled. It may also be destroyed by the testator himself or by a person authorized by the testator. A will is considered revoked if the testator marries or has a firstborn child after the will is made.

Are there any restrictions on the terms of a will?

There are certain restrictions on the way in which assets can be disposed of through a will. Cyprus has what is known as a 'compulsory share of inheritance', which means that certain relatives/heirs, such as spouses or children, cannot be excluded from inheritance and are entitled to a fixed minimum''percentage of inheritance.

What is the 'compulsory share of inheritance regime'?

According to Cypriot law, such a regime is intended to protect the rights of the testator's close relatives. The part of the estate that the testator can dispose of through a will is called the "share to be disposed of". The remainder of the estate is called the "legal share". The calculation of both the share and the legal portion depends on the availability of surviving relatives at the time of death.

How is the share to be disposed of calculated?

If a person dies leaving a spouse and a child or descendant of a child, or if the person has no spouse but has a child or descendant of a child, the share to be disposed of must not exceed one''part?

The remaining portion (the legal portion) will be distributed according to the legal portion, which means that the distribution will be made according to the rules of inheritance under the law of inheritance.

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The spouse's share is calculated first, and then the remainder of the estate will be distributed to the deceased's relatives, depending on the degree of kinship. The share given to the surviving spouse is: If the decedent left a child or a child's descendant, the spouse's share is equal to each child's share. If the decedent did not leave a child or descendant of a child, but has an ancestor or descendant of an ancestor of a third degree of consanguinity, the spouse is allowed 50% of the net value of the inheritance. If the decedent left a relative in the fourth degree''s relationship, the spouse is entitled to 75% of the net value of the inheritance. If the deceased left no relatives up to the fourth degree of consanguinity, the spouse is entitled to the entire inheritance.

Does a will have to be made?

It is not necessary to make a will. If a person dies without leaving a will, his/her inheritance will be distributed according to the standard rules of intestate succession.

How is an inheritance distributed according to the rules of inheritance?

There are four categories of relatives who are entitled to inherit by law: First category: the legal children of the deceased and the descendants of any of the children who died before his/her death. Second category: any parent or''brother/sister of the deceased. The third category: the closest living relatives of the deceased's ancestors. For example, grandmother or grandfather. Fourth category: the nearest living relatives living at the time of his/her death, up to the sixth degree of consanguinity (such as cousins and grandparents' families).

What happens to immovable and movable property of foreign citizens?

According to Article 22 (choice of law) of the EU Inheritance Regulation (650/2010), foreign nationals can choose whether to apply the law of their country of citizenship or the law of any other country to the inheritance of their property in full. For example, Italian citizens who own property in Cyprus may choose Italian law to administer their estate on death and''completely avoid the regime of compulsory share of inheritance. The decision to apply Italian law must be clearly stated in the will, as otherwise Cypriot law on default inheritance will apply. However, there are some exceptions as to whether the deceased left movable or immovable property in Cyprus.

Are there tax liabilities?

There is no inheritance tax in Cyprus as the Inheritance Tax (Amendment) Obligations Act 2000 has been repealed in respect of any person who died after January 1, 2000. However, it should be noted that persons domiciled in other countries may be liable to pay inheritance tax in their home countries. The contents of this article are intended''for general guidance on the topic specified. A specialist should be consulted about your specific circumstances.

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