mal rules if the inheritance is passed on with no renumeration.
25. Life insurance Money from a life insurance becomes part of the bequest, if there is no assignee. It is advisable to appoint a beneficiary to to take advantage of tax allowances.
26. Pension funds The evaluation of the pension fund by a court depends on the strategy of assessment chosen by the testator. The choice of the fund can have considerable impact on the assessment of the inheritance tax. Therefore, a thorough analysis and legal counsel should be obtained from a lawyer.
27. Proof of the status of the heir and legatee Another regulation may be agreed upon: If heir A accepts the inheritance and dies, heir B may replace him. This has to be specifically expressed in the last will by the testator and heir B has to be already born when the will is drawn up.
18. Ownership and use of inherited real estate It may be stated in the last will that a specific person is not an heir but accepts a bequest. That means that he does not receive the entire legacy but only specific parts of it; he is a legatee. The law provides that an heir will always receive his portion. By this legacy agreement, parts of the heritagemay be assigned to a specific person. The basic principle of the legal capacity to draw up a will must be obeyed. The primary limitation tosuch an agreement is the legitimate portion.
19. Ownership and use of inherited real estate As explained above, an alliance of heirs is formed. Then the division of the real estate takes place. The heirs agree who may use the estate or, if they cannot arrive at an agreement, the legal provisions shall apply. The administration of the inheritance usually is managed jointly by the devisees. Here, the simple majority decides. A curator for the inheritance is appointed in special cases.
20. Restrictions regarding the heirs' liability If a devisee accepts the inheritance, he also accepts all rights and liabilities of the testator. It is advisable to execute a limited
inheritance declaration if the exact amount of debts is not known. In that case, the court makes an inventory of the bequest and the heir can only be made liable to the amount of the heritage.
21. Revocability of last wills The last will may be revoked at any time by the testator, but he also has to follow the formal regulations (see section 4. above).
22. Execution of last wills The testator may appoint an executor to his will, who shall ensure that the wishes of the decedent are carried out. The executor may also accomplish special administrative tasks of the inheritance. Ideally, remuneration forthe executor should also be regulated in the last will.
23. Individual real estate inheritance/ Legal dispositions
A court may issue an official certificate stating that an heirs' power of representation. An acceptance of the heritage is issued by the court.
28. Inheritance Tax and measures to reduce it There are tax allowances for real estate, bank deposits and securities, stocks and bonds, that are deposited at Austrian banks and underly the capital returns tax. The foundation of a private trust also may be of interest to minimise taxes. Details should be discussed with a lawyer who can provide counsel or take actions individually for each case.
29. International treaties and agreements to avoid the double taxation in inheritance law
Austrian court. This happens in any case when Austrian real estate is inherited.
31. Proffesio iuris in Inheritance Law This instiution does not exist in Austrian Inheritance Law, or in Austrian International Private Law.
It is essential to get counsel by a lawyer if the amount of the heritage is high. The lawyer willassist you in in drawing up and executing your last will. The formal aspects should be complied with and taxation issues should be discussed to guarantee the implementation and enforceability of the last will.
These treaties were agreed upon to avoid paying inheritance tax twice, in the country of the decendent and in the heir's own country. Austria has signed agreements with the US, Hungary, the Czech Republic, Switzerland, the Netherlands, Liechtenstein, France and Germany. It should be noted that the agreement with Germany ends with the end of the year 2007.
24. Inheritance transfer according to the contract
30. Inheritance - Aspects of Private International Law
33. International treaties and conventions in International Inheritance Law
Rights may be sold. This also applies to the law of succession, but inheritance rights may only be sold after the death of the testator and before the heir officialy accepts the bequest. The devisee may sell his right or transfer it without compensation. Attention should be paied to the strict for-
The Tangible Inheritance Law acts in accordance to the personal statute of the decendent according to § 28 of the Austrian International Private Law. This depends on the citizenship of the testator. That means that Austrian inheritance Law becomes effective if the case is handled by an
Austria ratified the treaty on the formal requirements of testaments on the 5.10.1961. Testaments that are formally correct in the signatory States are also accepted in Austria. It is advisable for clients who own assets in Austria or intend to deposit money in
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32. First and second grade remission in International Inheritance Law The current legal position allows considerably tax benefits for tax category 1 (spouse and children), and for category 2 (grandchildren).
Austria for tax reasons to contact us, so we can jointly decide upon the best possible and most inexpensive solution.
34. Model of an open before a notary I Testament I, …., born …, express my last will, after carefull consideration, free of misaprehensions and external force. "Fill in last will" 1.Hereby I anull all testamentory dispositions that were made before this date. 2.…. is the sole heir of all of my assets. 3. a)There are no relatives with the right to inherit a legitimate portion, or b) my spouse / children / parents receive only the legitimate portion 4. If .. dies before I die or dies simultaniously with me the substition heir is .. I authenticate this testamentary disposition with my signature. I have read it before three witnesses and declare this document to my last will.
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A person aged 14-17 may only express his last will before a court or notary. Additionally, the minor needs to provide evidence that he is aware of the situation. He must be aware that he is making a last will and he must understand the content of the testamentary disposition.