Shrnutí: A death in the family raises a number of practical issues alongside the emotions. Who will inherit, what all belongs to the estate, how are debts dealt with and what to do if a dispute arises between the heirs? The good news is that the probate process has clear rules and in most cases can be handled without unnecessary conflict. The key is to know when to act quickly, what to watch out for and when it pays to consult a professional.
Quick overview
Probate proceedings are initiated by the court upon notification of the death and are conducted by a notary public as a court commissioner. The heirs do not choose the notary themselves. The proceedings establish the circle of heirs, the existence of a will or contract of succession, the assets and debts of the deceased and finally decide who gets what. The inheritance can be refused or the inventory reservation can be invoked, which protects the heirs from unlimited liability for debts. If the heirs agree, the procedure is usually quicker and more practical. If not, the decision is made according to the law or the provision for death.
After the death, the matter goes to the court, which authorises a notary to act as a court commissioner in the probate proceedings. In practice, this means that it is usually the notary who deals with the heirs, although the proceedings are formally conducted on behalf of the court. The acts of the notary as court commissioner are considered to be acts of the court.
In practice, we often see that the survivors are waiting to be “served” and in the meantime are not sure whether they should contact the notary themselves. This is usually not necessary. However, it makes sense to gather documents that can speed up the proceedings: deeds to the property, contracts, information about accounts, loans, possibly a will or a gift during life. This will be especially helpful where assets were scattered or the family does not have a complete overview of the testator’s finances.
The estate consists of the entire estate of the deceased, i.e. the assets and debts of the deceased, with the exception of the rights and obligations relating solely to his person. It is inherited under a contract of succession, a will or by operation of law. The notary therefore first ascertains whether there is a provision for death, who is eligible as an heir and what exactly belongs to the estate.
An important source of information is the register of acquisitions on death, which the notary consulted. At the same time, he or she looks for details of bank accounts, real estate, shares in companies, insurance or debts. If the assets are discovered after the proceedings have been concluded, they are discussed in the supplementary proceedings of the estate.
In practice, the biggest problem tends to be not with the family home or one account, but with assets that the heirs did not know about at all. These are typically older investments, debts, co-ownership interests or debts from a business. In such cases, the proceedings are easily prolonged.
If there is agreement between the heirs, the valuation of the property and the division can be relatively straightforward. For some items, a joint declaration of value is sufficient. However, once the heirs fundamentally disagree on the value or what belongs to the estate, further evidence, often including an expert’s report , comes into play.
It is useful to distinguish between two situations. One is a dispute over the value of the estate. The other is a dispute over the right of succession itself, for example, where several persons consider themselves heirs and their claims are in conflict. In such a case, someone may be directed to assert his or her right through a lawsuit. If he or she does not bring an action within the time limit, his or her right of succession is not extinguished, but it is not taken into account in the succession proceedings.
In our practice, the most common mistake is that the family settles the dispute “at home” for several months and only then starts collecting documents and evidence. In the case of inheritance, it is often the details that are decisive: who got what during life, whether there is a valid will and what the actual ownership of the items was.
There is often confusion in the articles here. It is not the case that all major gifts made in the last three years always automatically “revert to the estate”. In particular, the Civil Code makes a distinction between set-off for the mandatory share and set-off for the inheritance share. The mandatory share of a non-minor heir is what he received from the testator free of charge in the last three years before his death, unless the testator has specified a longer period. The set-off shall be made against the share of the heir only in cases provided for by law or expressly ordered by the testator; the court may make it without it if the non-delegable heir would otherwise be unduly disadvantaged.
In practice, this means that if, for example, one descendant received a large gift from a parent during his or her lifetime for a home or business, this may be relevant in the settlement of the estate. But it does not automatically mean an obligation to physically give something back. Rather, it is often a matter of offsetting when calculating shares.
Once the heirs, assets and debts have been identified, the proceedings move towards a conclusion. The most practical way is usually the agreement of the heirs. It allows the property to be divided more reasonably than purely mathematical shares would. Thus, one heir may keep the flat, another may keep the funds and another may receive a settlement. This tends to be much more workable than formal co-ownership of everything.
But the important thing is that it is an agreement between all the relevant heirs in the proceedings. If there is no agreement, the estate will be settled according to the inheritance rights that arise under the law or the Acquisition on death. In the case of a legal succession, individual classes of inheritance are taken into account, with the children and the spouse inheriting equally in the first class. If a child does not inherit, his descendants take his place.
Do you want to decide who inherits from you? To bequeath a specific part of your estate to a specific person? To be sure that your will is actually respected? We will write a will to suit your requirements. All within 5 days of ordering the service.
Three concepts that are very often confused in practice:
Refusal of inheritance is a step after the death of the testator. The heir may refuse the succession by making an express declaration to the court, usually within one month of the date on which the court has notified him of the right to refuse the succession and of the consequences of refusal. If the sole domicile is abroad, the time limit shall be three months. The refusal shall in principle be irreversible and may not be made in part or with conditions.
The renunciation of the succession takes place only in the succession proceedings and only in favour of the other heir. It is therefore incorrect to say that the succession can be renounced ‘in favour of a third party’ in the proceedings in general. The law speaks of a second heir.
A renunciation of the right of inheritance, on the other hand, is an agreement concluded during the lifetime of the testator and requires the form of a public deed, i.e. a notarial deed.
It is the confusion of these three institutes that is one of the most common mistakes we encounter.
Debts are a common part of an estate. They do not in themselves make an inheritance disadvantageous. The ratio of assets to liabilities is crucial. If the heir does not claim the inventory reservation, he pays the debts of the testator in full. If he claims the inventory reservation in time, he is liable for the debts only up to the value of the inheritance acquired. In addition, the creditor may only require him to pay up to the amount corresponding to his share of the inheritance, even if the reserved heirs are jointly and severally liable.
The reservation of inventory must be invoked within one month of the date on which the court notifies the heir of this right; the court may extend the time limit for important reasons. The testator may not withdraw this right from the heir.
In layman’s terms: if you are concerned that there may be hidden debts in the estate, the reservation of inventory is a very important safeguard. For larger or uncluttered estates, it is usually wise to consider it almost always.
In the case of a freehold flat or house, there are usually two main issues: the correct valuation and whether the property or part of it was part of the matrimonial community. If it did, what belonged to the surviving spouse is settled first and what only enters the estate. The property itself may then go to one heir with the obligation to pay the others, to several heirs in joint ownership, or it may be sold later and the proceeds divided.
In practice, co-ownership of a property between siblings is usually the least happy solution if no one has dealt in advance with the management, investment and possible future sale. At the beginning it looks amicable, but within a year or two disputes often arise over renovation, renting or sale.
In the case of a cooperative apartment, ownership of the apartment as immovable property is not inherited, but the cooperative share, which usually has a right to rent the apartment attached to it. If the cooperative share was part of the matrimonial property and was a joint membership of a housing cooperative, the situation is treated differently from that of the deceased’s ordinary exclusive property. This is where it is worth not underestimating the procedure, as the practical implications for the surviving spouse and other heirs can be considerable.
When a loved one dies, dividing the estate is often the last thing on our minds at the time. Nevertheless, it is important to meet the legal deadlines and not to delay in settling the estate. Inheritance is a difficult process in itself, and when securities are added to the mix, the whole situation can seem even more complicated. What does it all entail when you inherit securities, what is a central securities depository for or how to settle an inheritance online?
The main cost is usually the notary’s fee as court commissioner. Its basis is derived from the usual value of the assets of the estate and the notarial tariff sets the rates as follows:
If the proceedings are discontinued, the notary’s fee is usually CZK 1,000. In addition, the notary is entitled to reimbursement of his or her expenses; the tariff provides, inter alia, for a flat-rate reimbursement of CZK 300 and also for reimbursement of other expenses reasonably incurred, for example, for postage, travel expenses or expert opinions.
Inheritance tax as a separate tax is no longer paid in the Czech Republic. For individuals, gratuitous inheritance income is exempt from income tax. Thus, in practice, people deal mainly with the costs of the proceedings and any follow-up costs, such as expert opinions or taking over and managing the estate.
Probate is a formalised process, but in most ordinary cases there is no reason to worry about it. It is essential to know that the notary is appointed by the court, that the proceedings deal with debts as well as property, and that the heir has several important choices: he or she can refuse the inheritance, renounce it in favour of another heir, or claim a reservation of inventory. For disputes and uncluttered estates, it pays to act early, as most problems usually arise not from the law itself, but from passivity, poor communication and late gathering of evidence.
For a simple estate, often several months. When dealing with a dispute between heirs, assets abroad or expert opinions, it can take considerably longer.
No. Inheritance cannot be refused in part or with a condition. The rejection applies to the whole inheritance.
This is to protect the heir from being liable for the debts of the testator without limitation. If you claim it in time, you are liable only up to the value of the inheritance you have acquired. It is particularly useful if you are unsure of the extent of the debts.
The notary’s fee and the costs of the proceedings are paid by the estate. In practice, this will therefore be reflected in what goes to the heirs after the settlement.
It is still possible to try to reach an agreement within the procedure. If this is not possible, the decision will be made according to the inheritance rights arising from the law or from the acquisition in the event of death. In the case of a dispute over the right of succession itself, one of the heirs may be referred to bring an action.
You inherit the cooperative share, not the ownership of the apartment as real estate. The share is usually associated with the right to rent the apartment. In the case of joint membership of the spouses in a cooperative, the situation is different and should be handled carefully.
There is no separate inheritance tax in the Czech Republic. For individuals, income from inheritance is exempt from income tax.
Do you want to decide who inherits from you? To bequeath a specific part of your estate to a specific person? To be sure that your will is actually respected? We will write a will to suit your requirements. All within 5 days of ordering the service.
Ondřej is the attorney who came up with the idea of providing legal services online. He's been earning his living through legal services for more than 15 years. He especially likes to help clients who may have given up hope in solving their legal issues at work, for example with real estate transfers or copyright licenses.
Ondřej is the attorney who came up with the idea of providing legal services online. He's been earning his living through legal services for more than 15 years. He especially likes to help clients who may have given up hope in solving their legal issues at work, for example with real estate transfers or copyright licenses.
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