The matter in brief
How it went
Situation. After the death of the owner of the estate, the heirs had to establish their rights to property in Switzerland, accounts in the UAE and an operating business in Russia, each jurisdiction requiring a separate procedure of its own.
What we did. We coordinated the succession process in each jurisdiction in parallel, secured recognition of the Russian certificate of inheritance abroad where that was possible, and arranged local registration where a separate local procedure was required.
Result. The heirs’ rights were established in all three jurisdictions without loss of assets and within timeframes reasonable for an international inheritance.
Which law applies when assets are in different countries
The conflict-of-laws rule in Article 1224 of the Russian Civil Code. As a general rule, Russian law applies to succession the law of the country of the deceased’s last place of residence, and to succession to immovable property the law of the country where the property is located, regardless of where the deceased lived. In practice, this means a single estate may be governed by several legal systems at once.
A Russian certificate does not automatically apply everywhere. A certificate of inheritance issued by a Russian notary is recognised abroad only where an international treaty provides for it or local law allows it. In most countries, establishing rights to local assets still requires a separate local procedure: probate or its equivalent under the rules of the jurisdiction concerned.
Apostille and legalisation of documents. For states party to the 1961 Hague Convention, it is enough to apostille documents. For other jurisdictions, consular legalisation and a notarised translation into the language of the country where the document is presented are required. Without these, local authorities and banks generally will not accept the document.
How a case with assets in several countries usually proceeds
The general sequence for a typical situation with foreign assets, leaving aside disputes between heirs or additional delays that may extend the timeframes.
Inventory of assets and jurisdictions
We establish the full list of property and the country in which each asset is located, in order to determine which country’s law applies to it. Timeframe: 1-3 weeks.
Opening the probate file in Russia
An application is submitted to a notary at the deceased’s last place of residence within the standard six-month period for heirs to claim their rights. Timeframe: up to 6 months from the opening of the succession.
Working in parallel with foreign jurisdictions
Local lawyers are engaged in each country where assets are located, and the document package is prepared and legalised. Timeframe: runs in parallel with the Russian proceedings.
Obtaining and recognising the certificate
The Russian certificate of inheritance is obtained and, where applicable, legalised for presentation abroad, or separate local proceedings are initiated. Timeframe: 1-3 months after the six-month period expires.
Final registration of rights locally
Property, bank accounts and corporate rights are re-registered in each country under local procedures. Timeframe: varies by jurisdiction.
Common mistakes when settling an inheritance abroad
Assuming a Russian certificate is enough everywhere. Heirs often wait six months, obtain a certificate from a Russian notary, and only then learn that a bank account or property abroad needs a separate local procedure, which should have been started in parallel rather than after the Russian proceedings were complete.
Missing the six-month period for accepting an inheritance. Under Russian law, the time limit for applying to a notary is not extended automatically because some of the assets are abroad. Missing it creates a risk of having to seek reinstatement of the time limit in court instead of a simple notarial procedure.
Underestimating translation and legalisation requirements. A document drawn up in full compliance with the rules in one country can be rejected in another simply for lacking an apostille, consular legalisation or a notarised translation. It is a formal requirement that is easy to overlook without a local lawyer.
Ignoring bank compliance. Banks in different jurisdictions apply their own checks when an account changes hands on the death of a client, and may request additional documents on the source of funds. If this is not allowed for, access to the account may be delayed beyond the formal timeframes of the succession proceedings.
What to watch for when inheriting assets abroad
Conflict of jurisdictions. If several countries consider themselves entitled to apply their own law to the same asset or to the estate as a whole, a dispute over the applicable law may arise. It delays registration, requires separate legal analysis and sometimes court resolution.
Double taxation. Russia has abolished inheritance tax for individuals, but in a number of other countries local legislation may provide for its own inheritance tax, or for capital gains tax when a non-resident later sells the inherited asset.
Currency control for Russian tax residents. Transactions on foreign accounts are governed by currency legislation. Late notification of the opening of an account, or of a change in its status, may give rise to separate administrative liability unrelated to the succession case itself.
Restrictions on dealing with the asset until the procedure is complete. Until the right to an asset is finally registered, banks and property registries in different countries may restrict transactions with it, from an account freeze to an inability to sell or let the property until the local proceedings are complete.
International inheritance in numbers
General benchmarks for this practice area, not figures for any specific case.
A similar situation? Let us discuss the details at a consultation.
Frequently asked questions
Can a business be protected from division on divorce if there is no prenuptial agreement yet?+
Once a conflict has begun, it is harder, but not always impossible. It is more effective to sign an agreement in advance, before a dispute arises.
How do you settle an inheritance if the assets are spread across several countries?+
The process is coordinated in parallel in each jurisdiction, and each country applies its own law to the assets located there.
Is this a real case or a generalised example?+
It is a real matter from the firm’s practice. We publish it without company names or the names of the participants, as every client agreement includes a non-disclosure clause.