Cyprus wills, probate & administration of estates

An estate is all the movable and immovable property a person owns. Estate administration means gathering the deceased's assets and distributing them to the legal heirs in Cyprus. A key factor determining the distribution of an estate is whether the deceased left a will.

Wills in Cyprus

In Cyprus, a will is a legal document by which a person, the testator, expresses their wishes for the distribution of their estate upon their death and names one or more persons as legal heirs and executors to manage the estate until its final distribution.

The primary purpose of a will is to direct the disposal of the portion of the estate that the testator is legally free to distribute. It can set out other matters, such as funeral arrangements.

Formalities of making a will in Cyprus

The testator must be at least 18 years old and of sound mind. The will must be in writing, signed by the testator at the end, with two witnesses present at the same time, who then sign it in turn. A witness, or the husband or wife of a witness, cannot take a gift under the will.

In Cyprus, a will can be registered with the District Court in the city where the testator resides. Registration is optional, and a will stays valid if it is not registered.

Consequences of dying with or without a will

The will allows for decisions on the matters listed below.

Appointment of executor

It gives the power to appoint the executor, who will be responsible for filing the estate administration at the relevant District Court and requesting a grant of probate (a court order), which will allow him to act in the name of the estate and distribute the assets according to the directions mentioned in the will.

The executor can be any person, occasionally a trusted family member or your lawyer, who has the legal knowledge and experience to administer the estate and divide the assets professionally.

If there is no will, the power to appoint an executor passes to the legal heirs. They will need to consent to appoint a suitable estate administrator, who will, like the executor, apply to the District Court for a grant of probate.

Distribution of property and assets of the estate

Without a will, the estate passes under the Wills and Succession Law (Cap. 195). The surviving spouse's share is set first under Article 44. What remains goes to the deceased's relatives, who are grouped into four classes by closeness of kinship, with a nearer class shutting out a more distant one. The first class is the children and the descendants of any child who died before the deceased. When a spouse and children both survive, the spouse and each child take equal shares.

If there is a will, it can specify the distribution of the assets and to whom they will be passed. It can even distribute assets to additional heirs, other than relatives, if the testator wishes to do so, subject to the Disposable Portion.

The disposable portion of the estate/assets

Cyprus Wills and Succession Law restricts the testator's freedom to dispose of his estate and assets so that they will pass mainly to family members.

The disposable portion of the estate refers to that part of the movable and immovable property of a person that they can dispose of freely by their will. According to Cypriot law, the part of an estate that can be freely allocated by a will is determined by the surviving relatives. Depending on who survives, the following scenarios may apply:

• Surviving spouse and children (or their descendants) – disposable portion is up to ¼ (one quarter) of the net value of the estate.
• Surviving spouse, parent, or parents (but no children or their descendants) – disposable portion is up to ½ (one-half) of the net value of the estate.
• No surviving spouse, children (or their descendants), or parents – disposable portion is the entire estate.

Can a will be revoked?

A will might be revoked by a subsequent will that expressly revokes the previous one. A testator may also revoke a will by tearing or otherwise destroying it.

Foreign nationals, forced heirship and choosing your national law

Cyprus applies forced heirship. A set share of the estate, the statutory portion, is reserved for close family and cannot be taken away by a will. Until 2015, Section 42 of Cap. 195 let a person whose father was born in the United Kingdom or a Commonwealth country dispose of their whole estate freely, whatever their domicile. Law 96(I)/2015 repealed Section 42. British and other foreign nationals who die on or after 3 July 2015 fall under the same forced heirship limits as Cypriots, so a will can no longer cut a natural child out of their statutory share.

There is a route around this. The EU Succession Regulation 650/2012, known as Brussels IV, lets a person choose the law of their nationality to govern their estate. A British national who owns assets in Cyprus can state in the will that English law applies, which sets aside the Cyprus forced heirship rules.

The choice must be expressly stated in the will. Without it, the estate defaults to the law of the country where the person was habitually resident at death. For anyone with cross-border ties, the wording of this clause decides whether relatives keep a guaranteed share, so it is worth getting right when the will is drafted.

Which law applies depends on the type of asset. Cyprus law governs immovable property located in Cyprus, whatever the owner's domicile. Movable property follows the law of the person's domicile at the time of death.

Estate planning in Cyprus

Estate planning is wider than writing a will. It looks at how assets like property, company shares, bank accounts, and pensions pass on, and how to reduce the delay and costs a poorly prepared estate creates for the family. Forced heirship and a Brussels IV election both feed into the plan.

We advise Cyprus residents and foreign owners of Cyprus assets on arranging their affairs so the estate reaches the people they intend with the least friction.

Administration of estates

General matters relating to the administration of estates in Cyprus are dealt with under the Administration of Estates Law (Cap. 189) and the Probates (Re-Sealing) Law (Cap. 192), together with the Rules made under them and the Cyprus Wills and Succession Law (Cap. 195).

Grant of probate

A grant of probate gives the estate administrator the power and legal authority to manage and distribute the deceased's assets. This includes the power to transfer property and access bank accounts to distribute assets to the legal heirs under court supervision, in accordance with the provisions of the law of inheritance.

The necessary documents to initiate the grant of probate procedure are the following:

• Certificate of death.
• If possible, the details of the heirs, name, address, and identity or passport.
• Certificate of Heirs issued by the Community Council president or the Mayor of the area where the person lived. Usually, it is prepared by a lawyer.

When is a grant of probate required?

This legal authority is required before dealing with the deceased person's assets. Banks in Cyprus freeze a deceased person's accounts and release funds only upon a grant of probate or letters of administration, so a grant is required even where the estate consists only of a bank balance.

A bank may, at its discretion, release a small sum for funeral or urgent expenses upon proof.

Probate Registrar and Registry

The law provides that the Chief Registrar is the principal probate registrar and that the Supreme Court Registry is the principal probate registry.

The probate registrars' main duties include receiving wills for safe custody, applications for the grant of probate or administration, and dispatching to the principal probate registry, in the prescribed form, notices of every application made to the registry for a grant.

Probate in Cyprus

The Estate Administration procedure in Cyprus will be initiated by the executor if there is a will or by all the legal heirs or any of them if there is no will. The lawyer will file the administration and probate application and request that the court grant the proposed executor the probate order, enabling him to administer the deceased's assets. Our step-by-step guide to probate in Cyprus sets out the documents, the application, and the final accounts.

Grant of Probate Order procedure

The application for the probate order will include information regarding the heirs and beneficiaries, the estimated value of the estate, movable and immovable property, debts, and a written declaration by the heirs or beneficiaries accepting their appointment.

If there is no consent from any of the beneficiaries, the application must be served to them, and they have the right to object to the appointment of the proposed administrator.

Processing time for a Probate Order

Where no beneficiary objects, the grant is often issued within 1 to 2 months. Winding up the whole estate usually runs longer, commonly three to four months for a simple estate and six to twelve months or more where there is immovable property, foreign heirs, tax clearances to obtain, or a dispute.

Administration of the assets following the issuance of the probate order

Having obtained the probate order, an administrator is obliged to file an inventory of the estate with the court, accompanied by an affidavit. During administration, they must obtain a tax release certificate and settle any taxes due.

His primary duty is to manage the estate under the supervision of the court to collect and distribute the estate, which includes the power to bring legal proceedings on behalf of the deceased, to pay the funeral and testamentary expenses, to settle the debts of the deceased, and to account to the court for the administration.

After payment of the funeral and other incidental expenses, including the administrator's reasonable expenses and the deceased's debts, the administrator will distribute the remaining estate assets to the beneficiaries. For the estate's administration, a specific bank account is usually opened to make all payments and receive any funds collected.

Finalisation of estate administration procedure

To finalise the administration, the administrator must file the final accounts, along with the necessary documents, details, and receipts, and a declaration signed by the heirs and beneficiaries confirming receipt of their inheritance.

The probate registrar examines the final accounts and, if the administration has been properly executed, releases the administrator from their duties.

Wills and probate lawyers in Cyprus

George K. Konstantinou Law Firm provides complete services regarding inheritance and succession law, wills and probate, and administration of estates in Cyprus, which include:

• Will drafting and registration with the court.
• Advice on Cyprus will disputes.
• Advising on issues relating to wills and succession law.
• Safe custody of the will until it is needed.
• Preparing application and documentation for the Grant of Probate.
• Appearing where necessary before the Courts.
• Acting as executors or administrators.
• Grant of Probate procedure.

Contact our wills and probate lawyers for a complimentary personal consultation and to ask about our fees.