Introduction
In an increasingly interconnected world, cross-border inheritance issues have become more common. Individuals often own assets in multiple countries or relocate during their lifetime, making succession law complex. To address these challenges, the European Union introduced the EU Succession Regulation (Regulation (EU) No 650/2012). This law aims to simplify cross-border inheritance by establishing uniform rules on jurisdiction, applicable law, and recognition of decisions across EU Member States.
As an EU Member State, Malta is directly impacted by this regulation. This regulation holds particular importance for the country because of its international expatriate community and its appealing property market for foreign investors.
Universal Application of a Single Law
The regulation establishes that the law applicable to an individual's succession will be the law of the country where the deceased had their habitual residence at the time of death. This means that, regardless of nationality, a person’s estate will be governed by the law of the country where they were most closely connected.
However, the regulation allows individuals to choose the law of their nationality to govern their estate. This is known as the principle of professio juris. A French citizen living in Malta, for example, can specify in their will that their estate should be governed by French succession law instead of Maltese law.
Jurisdiction and Competent Authorities
The courts of the country where the deceased had habitual residence will generally have jurisdiction over the succession. This prevents disputes over which country’s courts should handle the case.
For Malta, this means that if a foreign resident passes away while living in Malta, Maltese courts will have jurisdiction over their estate unless the deceased had chosen another applicable law.
Recognition and Enforcement of Foreign Decisions
The regulation ensures that judgments, authentic instruments, and judicial settlements related to succession are recognized and enforceable across EU Member States. This reduces legal uncertainty and prevents the need for parallel legal proceedings in different jurisdictions.
The European Certificate of Succession (ECS)
One of the most practical tools introduced by the regulation is the European Certificate of Succession (ECS). This document allows heirs, executors, and administrators to prove their rights in different EU countries without going through lengthy national legal procedures. The ECS is particularly useful for individuals with assets in multiple EU states, including Malta.
Implications for Cross-Border Inheritance in Malta
Malta has a significant number of expatriates who purchase property or settle in the country for retirement. The regulation clarifies that these individuals’ estates will be governed by Maltese law unless they specify otherwise in a will. This can have significant implications, as Maltese succession law follows forced heirship rules, meaning certain family members (such as children and spouses) have reserved shares of an estate, limiting testamentary freedom. Expats who wish to avoid Maltese forced heirship rules should expressly choose their national law in their wills to ensure their estate is distributed according to their wishes.
Furthermore, before the regulation, recognition of foreign wills in Malta was a complex matter. Under the EU Succession Regulation, wills and succession decisions made in other EU Member States are now more easily recognized in Malta, reducing administrative burdens. The creation of a European Certificate of Succession is also particularly beneficial for heirs dealing with estates that include Maltese assets. For example, if a French citizen with property in Malta passes away, their heirs can obtain an ECS in France and use it in Malta to claim inheritance rights without additional legal proceedings.
Conclusion
The EU Succession Regulation has made significant strides in simplifying cross-border inheritance, providing legal certainty for individuals with assets in multiple EU countries. In Malta, where many foreign nationals own property and reside, the regulation plays a crucial role in determining succession matters.
However, challenges remain, particularly concerning legal awareness and the interaction between EU rules and national property laws. For expatriates and international investors in Malta, proper estate planning and legal guidance are essential to ensure their inheritance wishes are fulfilled in compliance with both EU and Maltese law.
By understanding the implications of the regulation and utilising tools like the European Certificate of Succession, individuals can navigate cross-border inheritance more efficiently, ensuring a smoother legal process for their heirs. __________________________
Disclaimer: This article is not to be construed as being legal advice, and is not to be acted on as such. Should you require further information or legal assistance, please do not hesitate to contact us at info@prolegal.mt.