What is the current state of foreign national heirs? How does the law define and regulate such cases? Let's follow the article below to find out more.
I. The current state of foreign national heirs
Inheritance is a transfer of assets from a deceased person to a living person on the respect principle of the self-determination right of such a deceased person (who bequeathed transferred assets). However, the heirs with foreign nationalities are still facing problems, and many of them are struggling to complete the procedures for receiving the inherited assets.
II. Learn about heirs with foreign nationalities
This article will help you have a better understanding of this issue:
1. What is the definition of heirs with foreign nationalities? What is inheritance with foreign elements?
Every individual has the right to leave its assets to another person and inherit assets under a will or in accordance with the Law.
An heir with foreign nationality is understood as a person entitled to inherit and receive the inherited assets (under a will or the Law) without Vietnamese nationality at the time of opening the inheritance.
Pursuant to Clause 2, Article 663 of the Civil Code 2015: civil relations with foreign elements means any of the following relations:
a) There is at least one of the parties is a foreign natural person (an individual) or a juridical person (a legal entity);
b) The parties are Vietnamese citizens or juridical persons (legal entities) but the establishment, adjustment, execution and termination of inheritance arise in a foreign country;
c) The parties are Vietnamese citizens or juridical persons (legal entities) but the inheritance objects are located in a foreign country.
2. In cases where there are inheritance relations with foreign elements
Such cases can be mentioned as follows:
- A person who bequeaths assets is a foreigner or Vietnamese settled abroad;
- An heir is a foreigner or Vietnamese settled abroad;
- Inherited assets are from overseas;
- The basis for establishment, adjustment and termination of inheritance relations is under a foreign Law.
III. The legal provisions on heirs with foreign nationalities
This issue is prescribed as follows:
1. The inheritance entities with foreign nationalities
- As stipulated in Article 680 of the Civil Code of 2015: Inheritance is prescribed in accordance with the law of a country in which a person who bequeathed its assets held nationality prior to such a person being dead. The right to inherit immovable assets (or real estate) must comply with the law of a country where such immovable assets (real estate) are located.
Thus, there are 2 important contents regarding inheritance objects, as follows:
- For the object is assets: According to the Law on Nationality, the law that is applied for inherited assets of foreign inheritance relations is the law of a country in which a person who bequeathed its assets held nationality prior to such a person being dead. Therefore, a person with Vietnamese nationality, regardless of death in any country, shall comply with Vietnamese law to distribute assets.
- For the object is immovable assets (real estates): Inheritance must comply with the law of a country where such immovable assets (real estates) are located. In addition, according to Vietnamese law, an immovable asset is a special type that must be granted a certificate of land use rights or assets attached to the land. Land related to national sovereignty is not entitled to be transferred or donated to a person with a foreign nationality. Accordingly, immovable assets include:
+ Land
+ Houses and constructions attached to land, such as: outbuildings, toilets, water wells and water tanks.
+ Other assets attached to land, houses and constructions, such as: trees attached to land, etc.
+ Other assets as prescribed by law.
Pursuant to Article 186 of the Law on Land 2013, foreigners who are entitled to buy houses in Vietnam are entitled to inherit houses within the period specified by the State. They have rights to purchase and sell, donate, and inherit within the period specified by the Law.
A foreigner who is ineligible to buy a house in Vietnam, is only entitled to receive the value of immovable assets (real estate); therefore, such a person has no right to inherit, purchase and sell, or donate such immovable assets.
2. Conditions for the inheritance of foreigners
1. Foreigners have inheritance rights, as follows:
- In accordance with Article 630 of the Civil Code 2015, cases where a person is eligible to inherit assets under two forms include Inheritance by a will and Inheritance by law
- In cases of inheritance by law: Heirs must be in the line of inheritance as prescribed by Law.
- In cases of inheritance by a will: A will must be legal and heirs must be distributed assets by the deceased.
Accordingly, there are requirements for heirs, as follows:
+ A heir must be alive at the time of opening the inheritance.
+ A heir shall not fall into the case of “not entitled to inherit” left by the person who bequeathed the assets to deprive an heir of the inheritance right through a will in force.
2. Foreigners entitled to inherit might have the right to own assets (including movable and immovable assets) as stipulated by Vietnamese law.
3. How are inheritance procedures with foreign elements prescribed by Law?
1. When the heir is entitled to inherit assets involving foreign elements, such a person shall prepare a written declaration(s) for acceptance of inheritance and send it to notary offices or the People's Committee where the inherited assets are located.
As stipulated in Article 58 of the Notary Law 2014, a declaration dossier shall include the following documents:
- A written request for notarization
- Death certificate of the hospital or the local government as confirmed
- Certificate of house ownership and vehicle registration, and other documents proving assets are the deceased’s assets (if any)
- Land diagram, cadastral extract notarized and authorized (in case the assets are immovable)
- A will or documents of inherited asset division between heirs as notarized
- Marriage certificate; household book; birth certificate; identity card; documents proving relationships between the donator (a person who bequeathed its assets) and the heir.
2. After completing the declaration dossier for acceptance of inheritance, the Notary's Office or the People's Committee where inherited assets are located will review and appraise such dossier. If this declaration dossier is legal, they will notarize and certify the inheritance division documents.
IV. Some questions related to heirs with foreign nationalities
1. Are foreigners entitled to inherit house and land in Vietnam?
Pursuant to Article 186 of the Land Law 2013, a person with a foreign nationality is also entitled to inherit immovable assets (real estate) in Vietnam. The difference between Vietnamese and foreign citizens in the inheritance of immovable assets is only the ownership of such assets. Vietnamese citizens are entitled to be the owners of immovable assets they inherit. Foreigners are only entitled to receive the value of the inherited assets, but not the owners of such assets (if they are not any of the subjects entitled to inherit house(s) in Vietnam as prescribed by law).
Thus, foreigners still have the right to receive the value of inheritance as house and land in Vietnam.
2. Some notes on heirs with foreign nationalities
In relation to inheritance relations with foreign elements in general and heirs with foreign nationalities in particular, there are some notes as follows:
- Inheritance under the law must comply with the law of a country in which a person leaves its assets held nationality prior to such a person being dead.
- The right to inherit immovable assets must comply with the law of a country where such assets are located.
- Assets without heirs are immovable assets belonging to the State where they are located.
- Assets without heirs are movable assets belonging to the State of which a person leaving its assets held nationality prior to such a person is dead.
3. If there is a dispute over the inheritance involving the foreign nationality, which competent agency can resolve it?
According to Article 26 of the Civil Procedure Code 2015, the Court has the authority to resolve such disputes.
Pursuant to Article 37 and Clause 1, Article 39 of the Civil Procedure Code 2015, disputes over the inheritance that parties or assets abroad, or needs to be judicially entrusted to a Vietnamese consular abroad or foreign courts are under the jurisdiction of the provincial People's Court where the disputed assets are located or where the defendant resides and works (if the defendant is an individual) or where head office's defendant is located (if the defendant is an agency or organization).
Thus, if there is a dispute over the inheritance of foreign nationality, the provincial People's Court will have the competent authority to resolve it.
The information given above is about heirs with foreign nationalities. In order to get support and gain a better understanding of information and regulations on heirs with foreign nationalities, you can contact NPLaw for advice from a team of experienced lawyers and legal experts.
