Wills, Probate & Administration of Estate in Cyprus

What is a Will?

In Cyprus, a Will is a legal document which contains a person’s intentions as regards the distribution of his movable and immovable assets following his death.

Why do I need a Will?

Under a Will (subject to some limitations imposed by Law namely the forced heirship rules) a person can plan as to how his estate will be distributed following his death and who will be inheriting from his estate. It is very important to understand that if there is no Will in place, the rules of intestacy will apply which means that the estate will be distributed to the parties entitled under the Law which are divided into categories of line of succession.

Are there any limitations imposed by the Law as regards freedom of disposition in my Will?

Yes, there are limitations imposed by the Law as regards the freedom of Will which are also known as forced heirship rules.

Cyprus has a complicated system of forced heirship in which a portion of a deceased’s estate must be effectively passed to surviving family members according to a system of inheritance. Natural children of deceased persons are entitled to an equal share of their parent’s property along with their parent’s spouse. The forced heirship regime applies to anyone’s Estate in Cyprus irrespective of his place of residence or nationality.

Is there any way I can chose the law of my nationality to govern the succession of my estate?

A person can choose the law of their nationality as the law applicable to their estate. However, it is very important to understand that such choice must be clearly expressed in writing in their Will. This has been possible since 2015 whereby the EU Regulation 650/12 was implemented, and which has universal application.

How do I make sure that my Will is valid?

A Will is valid only if the testator is of sound mind and above the age of 18 and provided:

(a) it is in writing,

(b) it is signed at the bottom or at the end by the testator,

(c) it is signed by two witnesses who are of sound mind, at the same time, in the presence and at the request of the testator.

It is vital to note that if the Will is comprised of more than one sheet of paper then each sheet must be signed by the testator as well as by the witnesses.

The witnesses of the Will cannot be beneficiaries under the provisions of the Will although they can be named as Executors.

Can I revoke or destroy my Will?

A Will is revoked if there is a later Will which expressly revokes the earlier or if there is a later Will which is clearly incompatible with the provisions of the preceding one. A Will can be destroyed if it is burned, teared up, or destroyed by any other means by the testator.

Do I need a lawyer to prepare my Will?

Strictly speaking, it is not necessary to appoint a lawyer to prepare your Will. However, bearing in mind the strict and changing requirements that need to be met with so that a Will is considered valid, it is highly recommended that you seek legal guidance so as to avoid complications.

Distributing the Estate

A very delicate matter that needs to be dealt with high proficiency and discretion, is the procedure of handling and distributing the estate of a loved-one that has passed away.

Even the administrative process itself is not that simple and it is vital for anyone that decides to commence such procedure to obtain legal advice and ideally to appoint a lawyer to handle all the legal work.

Commencing the Procedure – Initial Factors

At first instance, the most important factor to be considered is whether somebody has passed away having a valid Will or whether that person has passed away without a Will – intestate. This distinguishes the procedure to be followed, which is either a “Probate Procedure” in case there is a Will or an “Administration of estate” in case there is no Will.

This also determines how the estate of the deceased will be distributed as (a) in case of a Probate Procedure the estate will be distributed according to the wishes of the testator as these are described in his last Will and (b) in case of an Administration the estate will be distributed to the rightful heirs and according to the share they are allowed to receive as such is defined under the Wills and Succession Law Cap 195.

It should be clarified that the above-mentioned Law, Cap 195, is not of relevance only in cases of intestacy, as the Law provides several conditions that need to be met with  before any Will can be considered as “legal and valid” and also imposes some forced heirship rules that must be taken in mind when executing the Will.

Filing a Court Application at the Court

In case there is a Will, a person is normally nominated under the Will by the testator to act and to be appointed as the Executor of the estate. The nominated Executor of the estate is the appropriate person to commence the Probate Procedure and has the obligation to fulfil and execute the wishes of the testator. The nominated Executor needs to file a Probate Application at the Court so as a Court Order is issued which legally appoints him as the “Executor”.

In case of intestacy, all rightful and legal heirs must agree and provide their consent for a person to be appointed as the Administrator of the estate of the deceased. This person needs to file an Administration procedure at the Court so as the Court grants him “letters of Administration” via a Court Order and this person to become the Administrator of the estate.

The Inventory of Assets

The Executor and/or the Administrator should conduct all relevant searches and obtain all necessary information to have a full and clear image of all the assets that the deceased had in his name at the time of his death, as once again, it is a requirement under the Law to file an Inventory of Assets at the Court which is accompanied by an Affidavit sworn by the Executor/Administrator that they have revealed and disclosed all the assets of the deceased.

The final Tax Clearance Certificate

The moment a Probate and/or an Administration procedure is filed at the Court, the Executor and/or the Administrator must inform the Inland Revenue Department. The Inland Revenue Department will then open a file and basically will investigate whether the deceased owes any tax or whether the deceased was liable to any tax at all. The first thing that the Inland Revenue Department will query is: was this person tax registered (a tax resident) in Cyprus or was this person tax registered in another country?

If the deceased was tax resident in Cyprus, the Inland Revenue Department will request for Income Tax Declarations to be filed, if these have not been filed by the deceased before the time of his death, for at least 3 to 6 years up until the date of death.

If the deceased was tax resident in another country, the Inland Revenue Department will request a Certificate issued by the Relevant Authority of that country, confirming that this person was a tax resident in that country, for the past 3 to 6 years up until the date of death. This is known as “a certificate of fiscal residence”.

The Inland Revenue Department will then issue a final Tax Clearance for the estate of the deceased and separate tax clearance certificates for each asset that the deceased had in his name at the time of his death.

The Distribution of the Estate and submitting Final Accounts at the Court

Once the above Tax Clearances are issued, the Executor and/or the Administrator can proceed with distributing the estate of the deceased to the beneficiaries of the Will and/or to the rightful heirs of the estate. It is extremely important that before the process of distribution of the estate begins, all debts, expenses and fees of the deceased and of the estate are settled and paid from the estate provided that there are enough funds in the estate to cover such. It is possible that the funds of the estate are not sufficient to cover the said debts and in such case the Executor and/or the Administrator has the right to sell and convert the estate into money or to consider taking any other steps so as to make sure that the debts and other expenses are paid.

Only then, will the Executor and/or the Administrator proceed with distributing the estate and transfer the assets of the deceased to the beneficiaries according to the share they are allowed to receive.

The last part of a Probate and/or of an Administration procedure, is to file Final Accounts at the Court. These Final Accounts will be checked and approved by the Court Registrar and they need to specify in detail all the steps that the Executor and/or the Administrator has taken. It is very important to include in the final accounts duly signed declarations by all the beneficiaries confirming that they have received their share of the estate. The Court Registrar will approve the Final Accounts and finally close the procedure, only if all legal requirements are met with.

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