If no will has been left by a decedent, or his/her will does not cover all of his/her assets, the law shall determine the order of succession. According to the general order of intestate succession under Hungary law, the right of inheritance shall be due first of all to his descendants out of the testator’s next of kins (descendants and ascendants). Therefore, the children of the decedent shall inherit in equal shares. An adopted person shall succeed as a blood descendant – except for secret adoption – provided, however, that an adopted person may inherit also from his/her blood relatives. Instead of a disqualified (e.g deceased) child, the portion due to him/her shall be inherited by his children. If there is no descendant, the spouse will be the heir. If there is neither a descendant nor a spouse, then the ascendants, i.e. primarily the parents, or in the absence of parents the grandparents or further ascendants will be the heirs. In the absence of next of kins and a spouse, collateral relatives, i.e. brothers and sisters and their descendants will be the heirs.
If the legal heir – based on the decedent’s will – is not a descendant (child, grandchild, etc.) of the decedent, any property that has come down to the decedent from an ancestor (parent, grandparent, etc.) by inheritance or gratuitous bequest (e.g. donation) shall be subject to lineal inheritance. Namely, the decedent’s closest ascendant, i.e. the parent will inherit the properties which have come down to the decedent from him/her or one of his/her ascendants. Descendants of a disqualified parent shall succeed in his/her place according to the general provisions on intestate succession under Hungary law. If there is neither a parent who is entitled to succeed nor a parental descendant, a more distant ascendant of the decedent shall inherit the property that has come down to the decedent from him/her or one of his/her ascendants. These rules shall not apply to property that no longer exists at the time of the decedent's death, to property that has replaced lineal property or that was purchased for the value of the lineal property. No claim can be filed under Hungary law, on the grounds of lineal inheritance, for furnishings and/or household accessories of common value against a surviving spouse or registered partner after a marriage or registered partnership of fifteen years. Lineal property shall be surrendered in kind. If it appears to be impractical, the court shall be entitled to order payment of the monetary value of the property.
The spouse or registered partner shall have a usufruct of all property not otherwise inherited by him. It is called widow's or widower's right. If a spouse or registered partner remarries or establishes new partnership, his/her widow’s or widower’s right shall cease to exist. Only descendants shall be entitled to request any limitation of such usufruct, however, it can only exist to the degree that the limited usufruct provides for the needs of the widow/widower.
If several descendants succeed together, each heir shall add to the value of the estate the value of gratuitous donations received from the decedent during his/her lifetime if the decedent expressly stipulated consolidation or the circumstances suggest that the bequest was made under the obligation of consolidation (collation). In particular, inheritance of several children in equal share does not result in real equality if one of them has already received a gratuitous bequest. Collation is made so that the value of gratuitous donations received shall be added to the value of the estate and the total value so received shall be divided among the heirs. The collation value shall be deducted from the hereditary share of the heir(s) who received (a) donation(s) and such heir(s) will receive the remainder as heritage.
The rules for lineal inheritance shall not apply to:
a) lineal property that no longer exists at the time of the decedent's death;
b) property that has replaced lineal property or was purchased for the value of the lineal property;
c) gifts of common value.
Substitution or compensation for the value of lineal property that does not exist at the time of the decedent's death (transferred, perished, consumed, etc.) shall not be effected.
If you have any questions relating to inheritance under Hungary law, you may contact us also via our online consultancy column.
