The Legal Routes of Wealth Transfer
Wealth transfer planning rests on the instruments of civil legislation that govern the passage of property between persons. The principal routes are transfer during a person's lifetime through a gift contract, and transfer after death — by will or by inheritance under the law. Each route carries its own formal requirements and deadlines, and the right combination determines how well your decisions are protected and how simply the procedure will unfold for the future recipients or heirs. This page explains how the Civil Code regulates gifts, the ranks of heirs by law, the drawing up of a will and the time limit for accepting an estate.
The Gift Contract and Its Form
Under Article 524 of the Civil Code, by a gift contract the donor gratuitously transfers property to the donee as his ownership with the donee's consent. Two important details follow from this definition: the transfer is gratuitous, so the donee owes nothing in exchange for the property, and it takes place with his consent — a gift cannot be imposed unilaterally.
The moment of conclusion differs according to the kind of thing, and this determines when the right passes to the recipient: a gift contract for a movable thing is considered concluded from the moment of the transfer of the property, while for an immovable thing — from the moment of the registration in the public registry of the right of ownership determined by the contract. A promise of a gift produces an obligation to give only where it is concluded in written form, which is why securing written form at the planning stage itself matters in evidentiary terms.
Inheritance by Law and the Ranks of Heirs
Where the deceased has left no will, the property passes by inheritance under the law. Article 1336 of the Civil Code determines the ranks of heirs, within which the heirs have equal rights. In the first rank the heirs are the children of the deceased, the child of the deceased born after his death, the spouse and the parents, including adoptive parents. The same rank contains a rule for grandchildren: they are considered heirs by law if, at the time of the opening of the estate, their parent — who should have been an heir of the deceased — is no longer alive, and they take equally the share that would have fallen to their deceased parent.
The following ranks are built accordingly: in the second rank are the sisters and brothers of the deceased, while their children — nieces and nephews — are considered heirs if at the opening of the estate their parent was no longer alive, and they take equally the share that would have fallen to the parent. In the third rank are the grandmothers and grandfathers — on both the mother's and the father's side — together with their own parents, if at the opening of the estate the grandmother and grandfather are no longer alive. The fourth rank includes uncles and aunts, and the fifth rank cousins — the children of uncles and aunts — or, if there are none, their children. This hierarchy of kinship determines in advance who enters the circle of heirs and in which rank, which must be taken into account already at the planning stage.
The Will and the Time Limit for Accepting the Estate
For arranging wealth by personal decision, the law sets a strict condition: under Article 1346 of the Civil Code, the will must be drawn up by the testator in person, and the drawing up of a will through a representative is not allowed. This means that the decision on the content of the will must rest on the personal will of the testator, and a breach of this requirement deprives the will of its foundation.
The heir's own actions, in turn, are limited by a deadline: under Article 1424 of the Civil Code, the estate must be accepted within six months from the day of the opening of the estate. Questions connected with the application of this time limit are settled by other norms of the law, so the heir must plan the timely procedural steps already within the planning process. The right architecture of a wealth transfer consists precisely in thinking through these details in advance — the form, the ranks, the personal participation and the deadlines.
Frequently Asked Questions
When is a gift contract for an immovable thing considered concluded?
A gift contract for an immovable thing is considered concluded from the moment of the registration in the public registry of the right of ownership determined by the contract.
Can a promise of a gift be relied upon?
Only if the promise is concluded in written form: only such a promise produces the obligation to give the gift.
Who are the second-rank heirs?
The sisters and brothers of the deceased. Their children — nieces and nephews — have the right to inherit if, at the opening of the estate, their parent, who would have been an heir of the deceased, was no longer alive.
Within what period must the heir accept the estate?
The estate must be accepted within six months from the day of the opening of the estate.
How We Help on Legal.ge
Wealth transfer planning demands a precise understanding of forms, deadlines and the ranks of heirs. The Legal.ge team helps you select the appropriate transfer instrument, correctly formalise the gift contract and the written promise of a gift, determine the circle of heirs by law and resolve questions connected with the terms of a will. Contact us so that we can analyse your decisions together with the mandatory requirements of the law.