Inheritance issues in Ukraine

Inheritance issues in Ukraine

The main inheritance issues are governed by the Civil Code of Ukraine dated January 1, 2004.

Under the law of Ukraine inheritance is the transfer of rights and obligations from a natural person who died (the testator) to other persons (the heirs). Inheritance is considered to be opened the day of the person's death or declaring the person dead. The place of opening the inheritance is the last place of the testator's residence. If it is unknown, the place of opening of inheritance shall be the location of real property or the major part thereof.

There are two types of inheritance in Ukraine:

under law (legal inheritance) under will (testamentary inheritance)

The right to make a will is exercised personally. That means that making a will through a representative is not permitted. The will is to be executed in writing, personally signed by the testator and certified by a state notary.

Legal heirs have the right to inherit in turn. Every next turn of legal heirs receives the right to inherit in default of the previous turn of heirs, their divestment of the right to inherit, non-acceptance of inheritance or refusal to accept inheritance.

There are the following turns (degrees) of legal heirs:

1 - testator's children, including those conceived in the lifetime and born after death of the testator, the spouse, and the parents

2 - testator's brothers and sisters, grandfather and grandmother both paternal and maternal

3 - testator's aunt and uncle

4 - persons who lived as one family with the testator for at least five years before the inheritance opening

5 - other testator's relatives up to the sixth degree of kindred. The relatives of a closer degree have priority over the farther degree relatives.

The law stipulated the term for acceptance of inheritance 6 months, which starts from the moment of opening of the inheritance. That means that a heir has to accept the inheritance during 6 months from the day of testator’s death. For this he/she is to submit an application to the state notary office for acceptance of the inheritance. One should also note that a heir has to submit an application personally.

A heir who lived together with the testator as of the moment of opening of the inheritance is deemed as having accepted the inheritance if no refusal was declared during 6 month period.

On the expiry of 6 months a heir has the right to obtain the certificate of the right to inheritance, which is issued by the state notary. For this a heir has to present to a notary the title documents to the property, which is inherited (for example, sale-purchase agreement, certificate of inheritance, decision of the court etc.).

After receipt of this certificate a heir should register his title to the inherited real property in the bureau of technical inventory. Only after this procedure a heir is considered to be the owner of the inherited property.

Inheritance taxes

The law of Ukraine settles the following tax rates for heirs:

0% - resident family member of the first degree

5% - resident family members not of the first degree

15% - resident who received the inheritance from non-resident

30% - non-resident who received the inheritance from non-resident

The above is intended to provide a brief guide only. It is essential that appropriate professional advice is obtained. Our company will be glad to assist you in this respect. Please do not hesitate to contact us.