Settlement and distribution of estates are important issues in inheritance. Let’s find out this issue with Lawyer X through the following situation: “Dear Lawyer! I want to ask when shall a meeting of heirs happen? What are order of priority of payment in inheritance? Thanks for answering me!”
Legal grounds
2015 Vietnam Civil Code
Time and place of commencing inheritance
The time of commencement of an inheritance shall be the time when the deceased dies. Where a court declares that a person is dead, the time of commencement of the inheritance shall be the date provided in Clause 2 of Article 81 of Vietnam Civil Code.
The place of commencement of the inheritance shall be the last place of residence of the owner of the estate. If the last place of residence is not able to be determined, the place of commencement of the inheritance shall be the place at which all or most of the estate is located.
An estate comprises property which the deceased owned and property which the deceased jointly owned with other persons. If an heir is an individual, such person must be alive at the time of commencement of the inheritance or, if such person is born and alive after the commencement of inheritance, must have been conceived prior to the time when the deceased dies. Where an heir under a will is a body or organization, it must be in existence at the time of commencement of the inheritance.
Regulations on meeting of heirs
– After being notified of the commencement of an inheritance, or after a will has been announced, the heirs may meet to agree on the following matters:
+ If the testator has failed to appoint an administrator of the estate or a distributor of the estate, or has not determined the powers and obligations of such persons, the appointment of such persons and the determination of their powers and obligations, as the case may be;
+ Method of distributing the estate.
– All agreements by the heirs must be made in writing.
Regulations on distributors of estates
– A distributor of an estate may also be the administrator of the estate appointed in the will or by agreement of the heirs.
– A distributor of an estate must distribute it strictly in accordance with the will or the agreement of the heirs at law.
– A distributor of the estate may receive remuneration if so allowed by the testator in the will or if so agreed by the heirs.
Order of priority of payment
Property obligations and expenses related to an inheritance shall be paid in the following order of priority:
– Reasonable funeral expenses in accordance with customary practice;
– Outstanding support payments;
– Expenditures on preservation of estate;
– Allowances for dependants of the deceased;
– Wages;
– Monetary compensation for any damage;
– Taxes and other liabilities owed to the State;
– Other liabilities owed to other natural persons or juridical persons;
– Fines;
– Other expenses.
Distribution of estates in accordance with wills
– An estate shall be distributed in accordance with the wishes of the testator. If the will fails to specify the share of each heir, the estate shall be divided equally between the persons named in the will, unless otherwise agreed.
– Where a will provides for the distribution in kind of an estate, each of the heirs shall be entitled to receive his or her share in kind, plus the benefits and income derived therefrom, or must bear the depreciation in value of such share in kind up to the time when the estate is distributed. If the property which is the subject of a share in kind has been destroyed due to the fault of another person, the heir has the right to demand compensation for damage.
– Where a will provides for the distribution of an estate according to certain proportions of the total value of the estate, such proportions shall be calculated on the basis of the value of the estate at the time of distribution.
Distribution of estates in accordance with law
– If, at the time of distribution, an heir has been conceived but not yet born, a part of the estate equal to the share of another heir at the same level of heirs shall be set aside for the unborn heir. If the heir is born alive, he or she shall inherit such part of the estate. If the heir does not survive his or her birth, the other heirs at the same level of heirs shall be entitled to his or her share.
– The heirs have the right to demand the estate to be distributed in kind. If the estate is not able to be equally distributed in kind, the heirs may agree that the property shall be valued and may agree on which heirs shall be entitled to receive which particular items of property. Failing such agreement, the assets in kind shall be sold for distribution.
Limited distribution of estates
Where it was the wish of a testator, or where the heirs agree, that an estate is to be distributed only after a certain period of time, it shall be distributed only after such period of time has expired.
If there is a request to distribute an estate but such distribution will seriously and adversely affect the life of the remaining wife or husband and family, such spouse has the right to request a court to fix the share of the estate to which other heirs are entitled but not to allow distribution of the estate during a certain period of time. Such period shall not exceed three years from the date of commencement of inheritance. When such period fixed by the court has expired or such remaining spouse has remarried, the other heirs have the right to request the court to permit distribution of the estate.
Distribution of estates where new heir or where right of heir to inherit has been disallowed
– Where a new heir appears after an estate has been distributed, the estate shall not be re-distributed in kind but the heirs which have received [a share of] the estate must pay the new heir a sum equivalent to the share of the estate of such [new heir] at the time of distribution of the estate in proportion to the [respective] share of the estate already received [by each heir], unless otherwise agreed.
– Where the right of an heir to inherit is disallowed after an estate has been distributed, such heir must return the inheritance or pay to the other heirs a sum equivalent to the value of the inheritance received at the time of distribution of the estate, unless otherwise agreed.
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Frequently asked questions
After being notified of the commencement of an inheritance, or after a will has been announced, the heirs may meet to agree on the following matters:
+ If the testator has failed to appoint an administrator of the estate or a distributor of the estate, or has not determined the powers and obligations of such persons, the appointment of such persons and the determination of their powers and obligations, as the case may be;
+ Method of distributing the estate.
All agreements by the heirs must be made in writing.
A distributor of an estate may also be the administrator of the estate appointed in the will or by agreement of the heirs.
Property obligations and expenses related to an inheritance shall be paid in the following order of priority: Reasonable funeral expenses in accordance with customary practice; Outstanding support payments; Expenditures on preservation of estate; Allowances for dependants of the deceased;Wages; Monetary compensation for any damage;Taxes and other liabilities owed to the State; Other liabilities owed to other natural persons or juridical persons; Fines;Other expenses.
Conclusion: So the above is Settlement and distribution of estates under Vietnam Law. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
