The benefit of living in a modern society such as the possibility to travel, live and work in any corner of the world, has given people the opportunity to consider investing in properties and assets situated in different countries and places that are not their habitual state of residence.

If that is the case, then one should be aware of the fact that in the case of inheritance then the rules of inheritance may create a slight variation of the procedure that they are aware of.

Therefore, when you have to deal with an inheritance procedure involving assets that are based in another jurisdiction than you need to be aware of the Renvoir rules may be applicable regarding those assets.

In international private law “Renvoi” (wording coming from French, meaning "send back" or "to return unopened") refers to the rules regarding the choice of law and it may be applied whenever a court or authority is directed to consider the law of another state.

Usually in most jurisdictions around the world, an inheritance procedure is dealt with in accordance with the law applicable in the country where the deceased had its habitual residence at the time of death.

If after the procedure is opened and when compiling the list of assets that belonged to the deceased it is discovered that some of the assets are situated in another country and therefore in another legal jurisdiction, then the applicability of Renvoir must be verified.

If the jurisdiction of the habitual residence of the deceased sends you to the jurisdiction of the place where the assets are located then you are in the presence of the Renvoir rules.

Most jurisdictions in the world comprises such dispositions from United Kingdom to Israel or Japan mentioning that in case of the assets situated in another jurisdiction then for those assets the inheritance procedure will be held under the rules of that jurisdiction (lex situs).

Furthermore, within the member states of the European Union, the EU Succession Regulation 4th July 2012 (EU Regulation 650/2012) – also known as Brussels IV –although it establishes as a main rule that the courts of the Member State in which the deceased person had their habitual residence at the time of death will have jurisdiction to rule on the succession as a whole, it also refers to Renvoir rights where applicable.

In the event that the foreign law is Romanian law and the assets are situated in the jurisdiction then what you must be aware of is the fact that in this situation, then for the assets situated in Romania, an inheritance procedure must be initiated in Romania which will result in the issuing of an inheritance certificate under Romanian law.  

Although the succession will be clarified in front of a Romanian Notary, whose competence will be established in accordance with the place where the assets will be situated within Romania, the inheritance will be decided taking into consideration the rules of succession in the jurisdiction where the deceased had their residence prior his death.

This is why almost all the time the Notary will request a certificate that will confirm the existence of rules of Renvoir in that jurisdiction and secondly who will be the heirs of the deceased and the inheritance that they will be entitled to, based on the habitual residence laws of inheritance.

Only after having this information will the Notary in Romania be able to finalise the procedure and issue the inheritance certificate, which is the document confirming and consolidating the heirs’ rights and title.

Although it might sound quite complicate, if the proper steps are followed and the needed documents are provided, the procedure should be finalized in a reasonable timeframe.

HAMMOND PARTNERSHIP

Hammond and Associates trading as Hammond Partnership is a Romanian law Firm based in Bucharest.  The Firm Hammond and Associates has been in existence since 2004 and is registered with the Bucharest Bar.  The lawyer of Hammond and Associates are all registered with the Romanian bar and are authorised to practise in Romania.  The managing partner of the Firm is a solicitor registered with the Law Society of England and Wales and the Bucharest Bar.  

The Firms client base is both Foreign and Romanian.  Its clients consist of SME’s as well as major companies who have invested in Romania.  In addition, it advises individuals both Romanian and Foreign on all aspects of Romanian law as well as providing English law advice when required.

The Firm’s clients come from many fields and countries.  Our clients ranging from international banks and companies.  It advises clients in the fields of aviation finance, employment, building and real estate, manufacturing, service industries, renewables, IT and computing, agriculture, and shipping . 

The Firm advises on M&A and associated transactions including employment matters from the perspective of employees and employers.  The Firm deals with comm as well as commercial matters ranging from formation of companies to distributorship and commercial agreements.  

Nora Matei (Author of this article - in the opening picture)

Nora is an experienced senior Romanian lawyer having dealt with both litigation and consultancy matters. She has practiced in Romania and the United Kingdom as a registered European lawyer. She has gained extensive experience in all civil aspects of the law as well as, commercial, family, employment and criminal law, tax dispute and data protection. She has advised clients in restructuring of their business to minimize the effect on the business and employees.

She has advised on court proceedings and represented clients in court at all levels.

She has counselled clients on legal matters in respect of their business, on immigration and employment day to day issues. She has advised on financing and refinancing issues as well as on banking documentation. She has conducted detailed due diligence in respect of purchase of assets including companies and advised on the relevant documentation.

This is native content supported by Hammond Partnership.