Regulations on distribution of estates in accordance with wills and laws in Vietnam

Regulations on distribution of estates in accordance with wills and laws in Vietnam (Internet image)

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

1. Regulations on distribution of estates in accordance with wills in Vietnam

Regulations on distribution of estates in accordance with wills according to Article 659 of the Civil Code 2015 are as follows:

- An estate shall be distributed in accordance with the wishes of the testator. If the will fails to specify the share of each heir, the estate shall be divided equally between the persons named in the will, unless otherwise agreed.

- Where a will provides for the distribution in kind of an estate, each of the heirs shall be entitled to receive his or her share in kind, plus the benefits and income derived therefrom, or must bear the depreciation in value of such share in kind up to the time when the estate is distributed. If the property which is the subject of a share in kind has been destroyed due to the fault of another person, the heir has the right to demand compensation for damage.

- Where a will provides for the distribution of an estate according to certain proportions of the total value of the estate, such proportions shall be calculated on the basis of the value of the estate at the time of distribution.

2. Regulations on distribution of estates in accordance with law in Vietnam

Regulations on distribution of estates in accordance with wills under Article 660 of the Civil Code 2015 are as follows:

- If, at the time of distribution, an heir has been conceived but not yet born, a part of the estate equal to the share of another heir at the same level of heirs shall be set aside for the unborn heir. If the heir is born alive, he or she shall inherit such part of the estate. If the heir does not survive his or her birth, the other heirs at the same level of heirs shall be entitled to his or her share.

- The heirs have the right to demand the estate to be distributed in kind. If the estate is not able to be equally distributed in kind, the heirs may agree that the property shall be valued and may agree on which heirs shall be entitled to receive which particular items of property. Failing such agreement, the assets in kind shall be sold for distribution.

3. What are the cases of limited distribution of estates in Vietnam?

Limited distribution of estates under Article 661 of the Civil Code 2015 is as follows:

- Where it was the wish of a testator, or where the heirs agree, that an estate is to be distributed only after a certain period of time, it shall be distributed only after such period of time has expired.

- If there is a request to distribute an estate but such distribution will seriously and adversely affect the life of the remaining wife or husband and family, such spouse has the right to request a court to fix the share of the estate to which other heirs are entitled but not to allow distribution of the estate during a certain period of time.

Such period shall not exceed three years from the date of commencement of inheritance. When such period fixed by the court has expired or such remaining spouse has remarried, the other heirs have the right to request the court to permit distribution of the estate.

4. Distribution of estates where new heir or where right of heir to inherit has been disallowed in Vietnam

Distribution of estates where new heir or where right of heir to inherit has been disallowed under Article 662 of the Civil Code 2015 is as follows:

- Where a new heir appears after an estate has been distributed, the estate shall not be re-distributed in kind but the heirs which have received [a share of] the estate must pay the new heir a sum equivalent to the share of the estate of such [new heir] at the time of distribution of the estate in proportion to the [respective] share of the estate already received [by each heir], unless otherwise agreed.

- Where the right of an heir to inherit is disallowed after an estate has been distributed, such heir must return the inheritance or pay to the other heirs a sum equivalent to the value of the inheritance received at the time of distribution of the estate, unless otherwise agreed.

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