How Do Inheritance Proceedings Work Step by Step?
Inheritance proceedings, also known as probate proceedings, are one of the non-contentious civil proceedings conducted to determine the legal successors of a deceased person and distribute their estate. It is determined who the heirs are, whether the deceased left assets or debts, and whether a will or inheritance agreement exists.
Most people are interested in how the entire process works and how it proceeds. The inheritance proceedings process begins at the moment when a doctor certifies the death of the deceased person and this fact is reported to the locally competent civil registry office. A copy of the death certificate along with funeral information is forwarded to the court that has jurisdiction to initiate the inheritance proceedings.
Contents
- First Steps of Inheritance Proceedings
- Estate Settlement Process
- Duration and Fees of Inheritance Proceedings
First Steps of Inheritance Proceedings
1. Selection of a notary: The court selects a notary who will conduct the entire inheritance proceedings. This selection is not up to the survivors, to preserve impartiality.
2. Preliminary investigation: The notary conducts an investigation, usually approximately one month after the funeral, and gathers information from the person who arranged the funeral. Information about marital status, assets, children, and other relevant matters of the deceased is gathered. The result is a protocol of preliminary investigation. Ideally, the notary should have the following documents available:
- National ID card or other identification document, e.g., passport.
- List of potential heirs with dates of birth, addresses, and contact information.
- The deceased's will, if one exists.
- Information about bank accounts, savings accounts, and foreign currency accounts of the deceased.
- Information about savings books.
- Real estate ownership documents (purchase agreements, gift agreements).
- Vehicle registration certificate.
- Documents on cooperative membership.
- Loan, credit card, and debt agreements.
- Documents on established safe deposit boxes.
- Funeral expense receipts.
The notary's main objective was to verify and check all provided information. Other relatives and close persons may also supplement data and answer the notary's questions or submit required documents.
The notary was tasked with identifying the existence of a will, inheritance agreement, or a document disinheriting any of the heirs. For this purpose, they had access to the Register of Legal Actions in Case of Death maintained by the Czech Chamber of Notaries. They could also request the deceased's birth and marriage certificates.
The notary confirms information about heirs from the Central Population Register and verifies property in the Land Registry and other relevant institutions or registers. Banks and insurance companies provide information about account balances as of the date of death, and the Czech Social Security Administration confirms pension payments. To verify additional information, the notary contacts the Commercial Register, Trade Register, or Central Depository of Securities.
The information verification process within inheritance proceedings, provided there were no disputes among heirs, typically takes 2-3 months. This period may be extended if certain information could not be easily obtained (for example, due to an heir residing abroad) and the notary had to seek out the necessary data.
3. Asset valuation: Another important point in the inheritance process is the quantification of debts and the value of the deceased's estate. This information is always determined as of the date of death through an inventory of assets and liabilities. During the probate proceedings, it is necessary to determine the value (fair market value) of the assets left by the testator that could be sold at the time of their death.
If there are no disputes among the heirs and the deceased does not have significant debts, an agreement among the legal successors or a valuation performed by the estate administrator is sufficient to determine the asset value. However, in the case of land, family homes, new vehicles, or a business enterprise, an expert opinion must be obtained or, in case of disagreements among heirs, a court expert opinion. For household furnishings and smaller assets, an agreement among the heirs is often sufficient.
A court expert opinion is required when heirs cannot reach an agreement on the value of assets, which often triggers family conflicts. The notary in charge of the estate valuation selects the expert. However, heirs have the option to agree on the distribution of assets based on their own agreement, provided it does not conflict with the interests of a person under special protection.
A unanimous declaration of heirs and the creation of an estate asset inventory can often replace the estate inventory, which is necessary in cases where potential heirs do not act in agreement. The court may order the creation of an estate inventory also in situations where no one claims the inheritance or where a forced heir is missing from the will.
Estate Settlement Process
1. Final hearing: The notary convenes potential heirs for a final hearing, where the will (if one exists) is read and an inventory of the deceased's assets and debts is conducted.
2. Filing objections or renouncing inheritance: Heirs have the option to reject or renounce the inheritance if they decide to do so or have justified reasons.
3. Distribution of inheritance: If the heirs agree, the distribution of assets takes place according to their agreement. In case of disputes among heirs, the notary decides according to the statutory shares of individual heirs.
Who Are the Heirs and How Are They Determined?
Inheritance classes:
There are several classes of heirs according to the statutory succession.
- Descendants of the testator (children, grandchildren, great-grandchildren, etc.) -- in the first class of heirs
- Spouse or partner of the testator -- in the first or second class of heirs
- Parents of the testator (father and mother) -- in the second class of heirs
- So-called cohabiting person -- in the second or third class of heirs
- Siblings of the testator (brothers and sisters) -- in the third class of heirs
- Nephews and nieces of the testator -- in the third class of heirs
- Grandparents of the testator -- in the fourth class of heirs
- Great-grandparents of the testator -- in the fifth class of heirs
- Uncles and aunts, great-nephews and great-nieces of the testator -- in the sixth class of heirs
Exclusion of an heir: The law allows the exclusion of an heir from the inheritance for reasons such as failure to provide assistance to the testator in need or criminal activity against the testator.
Duration and Fees of Inheritance Proceedings
Duration: The standard duration of inheritance proceedings is approximately 4 months, but it may be significantly extended if problems or disputes among heirs arise.
Fees: The notary charges fees for their services, which are based on the value of the deceased's estate and costs associated with preparing documents for the court or costs for preparing expert opinions.
Inheritance proceedings are a complex process governed by statutory procedures and may vary depending on the specific conditions of each case.