Inheritance in Montenegro: What you need to know to be well prepared
Inheritance law in Montenegro is a complex field that is regulated by both national laws and international agreements. In this blog article, we will give you a detailed overview of the most important aspects of inheritance law in Montenegro, from legal heirs to tax aspects and practical tips for heirs and testators.
Legal basis of inheritance law in Montenegro
Montenegrin inheritance law is mainly based on the Law on Inheritance (Zakon o nasljeđivanju). This law regulates all aspects of succession, including the determination of heirs, the distribution of the estate and the obligations of the heirs.
Inheritance law in Montenegro recognizes two main types of succession: intestate succession and testamentary succession.
Legal succession
If there is no will, the statutory succession comes into force. Legal succession in Montenegro follows a specific scheme that takes into account the family relationship of the deceased:
- First succession class:
The deceased’s spouse and children inherit in equal shares. If a child dies, their descendants inherit in their name. - Second succession class:
If there are no heirs in the first class of succession, the parents of the deceased and their descendants inherit. - Third succession class:
Grandparents of the deceased and their descendants inherit if there are no heirs in the first and second classes of succession. - Fourth succession class:
Great-grandparents and their descendants.
Testamentary succession
Montenegrin law allows the testator to dispose of his or her estate by means of a will. A valid will can be made either in person, before a notary or as an oral will under special circumstances.
A will must meet certain formal requirements in order to be valid:
- Handwritten will:
Must be completely handwritten and signed by the testator. - Notarized will:
Must be drawn up before a notary and confirmed by two witnesses. - Oral will:
Is only valid in exceptional circumstances, for example if the testator is in a life-threatening situation and has no possibility of making a written will.
Right to a compulsory portion
Montenegrin inheritance law protects certain close relatives of the deceased through the so-called compulsory portion. As a rule, the spouse and children of the deceased are entitled to a compulsory portion. The compulsory portion amounts to half of the statutory inheritance share and cannot be withdrawn by a will unless there are serious reasons as stipulated by law.
Settlement of estates
In Montenegro, the estate is settled through a court procedure. The competent court examines the will, if there is one, and determines the legal heirs. The estate is then distributed in accordance with the statutory provisions or the instructions in the will.
Tax aspects
Inheritance tax in Montenegro is relatively low compared to many other countries. There is no inheritance tax for close relatives (spouse, children, parents), while distant relatives and unrelated persons have to pay a moderate tax on the inherited value.
International aspects of inheritance law
Montenegro is part of various international agreements concerning succession law, particularly in the context of the European Union. These agreements facilitate the cross-border recognition and enforcement of inheritance rights and testamentary dispositions.
If no heir can be found
If no heir can be found, the state acts as heir. This is clearly regulated by law. In such cases, all of the deceased’s possessions become the property of the state. This includes both movable and immovable assets. The state then also assumes the obligations and debts of the deceased up to the amount of the estate.
The state authorities are responsible for administering the estate and settling any debts. Remaining assets flow into the state budget. This mechanism ensures that no assets remain unused and that the deceased’s obligations are fulfilled.
Inheritance law for unmarried couples
Under Montenegrin inheritance law, unmarried couples are not automatically protected by intestate succession. This means that the surviving partner has no legal claim to the estate of the deceased if there is no will.
It is therefore particularly important for unmarried couples to draw up a will to ensure that their partner is taken into account in the event of their death. A will offers the opportunity to appoint your partner as your heir and thus guarantee them financial security. Without such a will, the estate would pass to the deceased’s next of kin in accordance with the statutory rules of succession.
Practical tips for testators and heirs
- Make a will:
To ensure that your estate is distributed in accordance with your wishes, it is advisable to draw up a will. If necessary, seek advice from a lawyer or notary. - Inform heirs:
Make sure that your heirs are aware of the existence and location of your will. - Organize documents:
Keep important documents such as birth certificates, marriage certificates and proof of ownership organized and easily accessible. - Tax advice:
Seek advice on possible tax obligations in the event of inheritance, especially if international aspects play a role.
Conclusion
Inheritance law in Montenegro offers clear rules and protection mechanisms for both testators and heirs. The combination of statutory and testamentary succession and the protection afforded by the compulsory portion ensures that the estate is distributed fairly. Nevertheless, it is advisable to deal with the legal and practical aspects of inheritance at an early stage in order to be well prepared in the event of an inheritance and to avoid potential conflicts. Unmarried couples should take particular care to draw up a will to protect the surviving partner.
