Inheritance in Romania

The legal inheritance becomes applicable when the deceased has not issued a will during his life where he had decided about the distribution of his goods after his death. Under the Romanian law there are two categories of legal inheritors: the surviving spouse and the deceaseds relatives up to the fourth degree.
The deceaseds relatives called by the law to inherit are divided in four classes in order of preference: (i) the deceaseds descendents (without limitation to the degree or number; for example: children, grandchildren); (ii) the deceaseds privileged ascendants (the parents) and privileged collaterals (the deceaseds brothers and sisters and their descendants until the fourth degree); (iii) the deceaseds ordinary ascendants (without limitation to the degree or number; for example: grandparents, grand-grandparents, etc.); (iv) the deceaseds ordinary collaterals (relatives until the forth degree; for example: uncles, aunts, primary cousins and the brothers and sisters of the grandparents).
The more preferable classes of inheritors exclude the less ones. Thus, the deceaseds descendents (first class) exclude all the other classes of descendents and collect the inheritance left by the deceased.
The Romanian law always calls at the inheritance, together with all the classes of inheritors, the deceaseds surviving spouse.
In case the deceased has left a last will then, at the division of the inheritance, the provisions of this testament are to be applied together with the ones of the mandatory law. The mandatory law refers to the inheritance reserve which is awarded only to certain inheritors like the deceaseds surviving spouse or the deceaseds descendants.
The inheritance can be divided either in court or in front of a notary public. The second option is preferable due to the rapidity, efficiency and confidentiality.
Inheritors must take into consideration also the taxation applicable to the inheritance. The Romanian law is very flexible in what regards the applicable taxes to an inheritance. Thus, there is applicable a tax only in case the inheritors did not open and finalize the inheritance procedure within 2 (two) years from the death of the author of the inheritance. This tax is in quantum of 1% (one per cent) from the established value of the inheritance. So, there is no tax applicable to the inheritance in case the inheritors are diligent and finalize the inheritance procedure within the 2 (two) years period mentioned above.
Foreign inheritors can collect their inheritance in Romanian without being obliged to be physically present here. The Romanian law allows the representation of the inheritors by attorneys in front of either the notary public or the competent court. It is recommendable for foreign inheritors to collaborate with Romanian specialists in order to best protect their interests in the inheritance procedure (this means the reduction of the period for finalizing the procedure, the reduction of the costs for the inheritance, the certainty that all the provisions of the Romanian law are complied with).
In case foreign inheritors decide to collaborate with Romanian specialists in view of collecting their inheritance in Romania they must only provide a special power of attorney (the model of which will be provided by their Romanian contractors) and the funds necessary to finalize the procedure.
Finally, we recommend that foreign inheritors should be diligent and act in due time in order to collect their inheritance in Romania. In case there are no inheritors to collect the inheritance left by a deceased person, then this will be collected by the Romanian state.
ABOUT THE AUTHOR: Ion Florin Chivu
Ion Florin Chivu graduated at the Faculty of Law of the "Nicolae Titulescu" University in Bucharest. He has also obtained a Master of Business Law degree from the Faculty of Law at the "Nicolae Titulescu" University in Bucharest. In his capacity of attorney at law, Ion Florin Chivu specializes in business consultancy and counseling and in the assistance and representation of clients in international and internal arbitration proceedings. In this regard, Ion Florin Chivu has been involved in numerous commercial transactions concluded between Romania and foreign entities.
Ion Florin Chivu has also been involved in international and internal arbitration proceedings based on the arbitration rules of ICC Paris, UNCITRAL or LCIA London in forums from Europe and Romania.