Forced heirship: The firewall legislation and Trust vs Wills. 11 July 2023
- Stella Kammitsi TEP, Advocate, Raza Corporate Services Ltd, Chairwoman, STEP Cyprus
- Nicky Xenofontos TEP, Advocate, N. Xenofontos LLC, STEP Cyprus Vice Chair
- 16:00 - 16:05 Nicky Xenofontos, welcoming note, housekeeping and introducing Stella Kammitsi
- 16:05 - 17:15 Concept and Overcoming Forced Heirship, Difference between Trusts vs Wills, Top Tips, Succession Planning
- 17:15 - 17:30 Questions and Answers with a moderator – Nicky Xenofontos
- 17:30 end of the webinar
Cyprus laws impose considerable restrictions on the testator’s freedom as to whom to dispose his estate upon death. Immediate family members of the deceased are protected as they are by law entitled to a substantial part of the estate of the deceased under the regime of forced heirship.
These forced heirship provisions may be avoided by setting up a trust: either an inter-vivos trust or a testamentary trust. But can this trust be challenged by the heirs?
The Cyprus International Trusts (CIT) Law provides explicitly that it does not recognise heirship claims against trust assets nor does the Cyprus laws on inheritance and succession nor those of any other jurisdiction affect in any way the transfer or disposition of assets to a CIT nor do these rights affect the validity of a CIT.
During the webinar, it will be examined how and to what extent these “firewall” provisions of the CIT Law against forced heirship may be challenged by virtue of specific EU Regulations or under the Hague Conventions. It will also address the concerns arising from the recognition and enforcement in Cyprus of civil and commercial judgements issued in another EU Member State pursuant to the laws of another jurisdiction regarding forced heirship claims over a CIT.
During the last part, we will analyse the extent to which CIT Law regarding forced heirship prevails over any other Cyprus laws and the laws of any other jurisdiction, considering EU Regulations and Conventions.