May the administrator of an estate pledge property within the estate without the written consent of the heirs in Vietnam?

May the administrator of an estate pledge property within the estate without the written consent of the heirs in Vietnam? (Internet image) 

Regarding this issue, LawNet would like to answer as follows:

1. What are the regulations on administrators of estates in Vietnam?

According to Article 616 of the Civil Code 2015, the administrators of estates is as follows:

(i) Administrator of an estate means the person who is appointed in the will or by agreement of the heirs.

(ii) Where a will fails to appoint, and the heirs have not yet appointed, an administrator, any person currently possessing, using or managing property within the estate at the time of the commencement of the inheritance shall continue its administration until the heirs have appointed an administrator.

(iii) Where an heir has not yet been determined and there is not yet an administrator of the estate as prescribed in Clauses 1 and 2 of this Article, the estate shall be administered by a competent authority.

2. May the administrator of an estate pledge property within the estate without the written consent of the heirs in Vietnam?

Pursuant to Article 617 of the Civil Code 2015, the obligations of administrators of estates include:

-  An administrator of an estate as provided in Clauses (i) and (iii) Section 1 has the following obligations:

= Make a list of the property within the estate and collect any property belonging to the estate of the deceased which is possessed by others, unless otherwise provided by law;

= Take care of the estate and do not sell, exchange, give, pledge, mortgage or otherwise dispose of property within the estate without the written consent of the heirs;

= Notify the heirs of the estate;

= Compensate for any damage if the administrator breaches any of its obligations, thereby causing damage;

= Deliver back the estate at the request of the heirs.

- A person possessing, using or managing property within an estate as provided in Clause (ii) Section 1 has the following obligations:

= Take care of the estate and do not sell, exchange, give, pledge, mortgage or otherwise dispose of property within the estate;

= Notify the heirs of the estate;

= Compensate for any damage if the administrator breaches any of its obligations, thereby causing damage;

= Deliver back the estate as agreed with the deceased in a contract or at the request of the heirs.

Thus, according to the above provisions, the administrator of an estate may not pledge property within the estate without the written consent of the heirs;

3. Rights of administrators of estates in Vietnam

- An administrator of an estate as provided in clauses (i) and (iii) Section 1 has the following rights:

= Represent the heirs in dealings with any third parties in relation to the estate of inheritance;

= Receive remuneration as agreed with the heirs;

= Receive payment of costs of estate preservation.

- A person possessing, using or managing property within an estate as provided in Clause (ii) Section 1 has the following rights:

= Continue to use the estate as agreed with the deceased in a contract or with the consent of the heirs;

= Receive remuneration as agreed with the heirs;

= Receive payment of costs of estate preservation.

- If the estate administrator fails to reach an agreement on the remuneration with the heirs, he/she shall be entitled to receive an appropriate remuneration.

(Article 618 of the Civil Code 2015)

Nguyen Ngoc Que Anh

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE