The inheritance law governs what happens to your assets after your death. In Belgium, the rules on this have changed dramatically with the 2018 reform. This article gives an overview of the legal succession, reserved inheritance (reserve), the possibilities of a will and the tax aspects of an estate.
Legal succession in Belgium
When a person dies without a will, the law distributes assets to heirs through a system of succession orders. The first order consists of the descendants (children, grandchildren). If there are no descendants, then the parents and siblings qualify (second order), then the other blood relatives. The surviving spouse or legal cohabitant has special inheritance rights, regardless of order.
The reserved inheritance (reserve)
The law protects certain heirs by giving them a reserved inheritance (reserve) grant that cannot be given away by will. Since the 2018 reform, the global reserve for children is half the assets, regardless of the number of children. Before 2018, the reserve was higher with more children. The surviving spouse also has a reserve: at least the usufruct on half of the estate.
Wills: what can you arrange for yourself?
You can freely dispose of the portion of your assets above the reserve (the available share). You do this through a will. In Belgium, three types of wills are valid:
- Own will: Fully handwritten, dated and signed by the testator;
- Notarized will: drawn up by a notary public in the presence of witnesses, most legally secure form;
- International will: less used, requires special formalities.
Gifts and their impact on the estate
Gifts made during the testator's lifetime are generally taken into account when calculating the estate. If a gift violates the reserve, the reservatory heirs may shortening claim. Gifts in the direct line (to children) are subject to gift tax of 3% (movable property) or 3% to 27% (real estate in Brussels), considerably lower than inheritance tax.
Inheritance tax in Belgium
In Belgium, inheritance tax is a regional tax. In the Brussels Capital Region, rates vary from 3% to 80%, depending on the degree of kinship and the size of the estate. Children and spouses enjoy the lowest rates. Distant relatives and unrelated heirs pay the highest rates. Proper estate planning with timely gifts can significantly reduce inheritance taxes.
Acceptance or rejection of the estate
An heir is not required to accept an estate. You can choose to:
- Acceptance pure and simple: You inherit all assets as well as liabilities (debts);
- Acceptance under privilege of estate planning: you pay the debts only to the extent of the assets - protects you from a negative estate;
- Rejection: you refuse the estate in full and are not liable for the debts.
Assistance with inheritance law and estates in Brussels?
Novex Lawyers advises in estate conflicts, reduction of gifts, testamentary disputes and inheritance tax optimization. We assist you from the time of death to the final distribution of the estate. Please contact us for a confidential discussion.
Also read: Divorce in Belgium: procedure and steps