Inheritance across borders – these are the rules you should know about
An increasing number of Norwegians have ties to other countries, either by living abroad or owning property in another country. When the deceased or the assets the deceased leaves behind have a connection to another country (international estate settlements), questions arise as to which rules apply to the distribution of the inheritance and the settlement of the estate. Choosing which country’s rules apply is called “choice of law” (the choice-of-law issue).
In this article, we provide a brief introduction to the Norwegian choice-of-law rules for international estate settlements. It is important to be aware that other countries may have different rules.
Main rule: Where you live determines the inheritance rules
This is how the choice of law is determined:
- Habitual residence: The main rule is that the inheritance law of the country in which the deceased had their habitual residence at the time of death applies.
- Example: If you are resident in Spain, Spanish inheritance law will normally apply to the inheritance from you. This applies even if you are a Norwegian citizen and have assets in Norway.
- Exception: You may stipulate in a will that the inheritance is to be distributed according to the rules of the country of which you are, or have been, a citizen. For example, Norwegian inheritance law if you are a Norwegian citizen.
Important factors in assessing where the deceased had their “habitual residence”:
- Where you are registered as resident and tax resident
- Where you have your permanent home and work
- Where your spouse/cohabitant and children live
- How long you have stayed in the country
A concrete assessment must always be made, but a temporary stay does not necessarily give you a new place of residence.
Administration of an estate abroad: Where should the estate be handled?
Main rule for administration of an estate abroad
As a main rule, the estate is to be administered (settled) in the country where the deceased had their habitual residence. This applies even if one is a Norwegian citizen. If the deceased lived in Spain, the estate administration should as a main rule be carried out in Spain.
Exception: When can the estate be administered in Norway?
The estate may nevertheless be administered in Norway if:
- No administration of the estate has been requested in the country where the deceased lived
- An heir, or another person entitled to do so, requests administration of the estate in Norway
- The District Court considers it appropriate
If these conditions are met, the administration of the estate may take place wholly or partly in Norway. When the deceased was resident abroad, the administration is handled by Oslo District Court.
Example: Norwegian resident in Spain
Ola is a Norwegian citizen and has lived permanently in Spain for the past ten years. He wants the inheritance from him to be distributed according to Norwegian inheritance law. Ola therefore makes a will in which he expressly stipulates this. When Ola passes away, the administration of the estate will as a main rule take place abroad (in Spain), but the inheritance will be distributed according to Norwegian inheritance law as stated in the will. Without the will, the inheritance from Ola would have been distributed according to Spanish inheritance rules. This shows how important it is to have a clear and valid will.
Special rules for the Nordic countries
A separate convention applies to the Nordic countries (Norway, Sweden, Denmark, Finland, Iceland). The main rule is that the inheritance law of the country where the deceased lived at the time of death applies, but it is possible to choose the law of the country of citizenship in a will. The estate is as a main rule administered in the country of residence.
What should you consider if you live abroad or have assets abroad?
- Choice of law: You should investigate which country’s rules would be used if you were to pass away. In many countries, as in Norway, it is the rules of the country of residence that are to be applied.
- Protection of spouse/cohabitant: Norwegian inheritance law gives spouses and cohabitants with joint children the right to take over the undivided estate. This does not always apply abroad. To safeguard this right, you should consider making a will stating that Norwegian inheritance law is to apply.
- Formal requirements for a will: A will and provisions on choice of law must meet certain formal requirements in order to be valid. Seek assistance from a lawyer to ensure that everything is correctly drafted.
- Property in several countries: Some countries have special rules for real property. This may mean that the estate settlement must be divided according to where the assets are located.
- Inheritance tax: In several countries, inheritance tax must be paid in the country where the deceased lived, even if the heirs live in another country and have a different citizenship. If you live abroad or have assets abroad, you should investigate which inheritance tax rules apply there.
Read more: Brækhus expertise in Family Law and inheritance
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Our lawyers have extensive experience with inheritance law advice, estate administration and litigation assignments, both for heirs and through appointments as estate administrators for Oslo District Court. We work regularly on cases with an international dimension and can help you and your family find solutions that suit your situation. Fill in the contact form below or get in touch directly.
