Inheritance Law and Wills: The Basics of Succession in Hungary

Introduction to Hungarian Inheritance Law

Hungarian inheritance law is governed primarily by Book Seven of Act V of 2013 on the Civil Code (Polgári Törvénykönyv, hereinafter “Ptk.”). The system blends testamentary freedom with mandatory protections for close family members, reflecting a continental European legal tradition that differs substantially from common-law approaches. Whether you are a Hungarian citizen planning your estate or a foreign national who has acquired property in Hungary, understanding the fundamentals of succession law is essential.

Modes of Succession

Hungarian law recognises three principal modes of succession:

1. Testamentary succession (végrendeleti öröklés) – the deceased left a valid will directing how their estate should be distributed.
2. Intestate succession (törvényes öröklés) – in the absence of a will, the estate devolves according to statutory rules.
3. Contractual succession (öröklési szerződés) – a bilateral contract whereby the testator undertakes to leave their estate (or part of it) to the other party in exchange for maintenance, care, or other consideration during the testator’s lifetime.

Testamentary succession always takes precedence over intestate succession, but both are subject to the compulsory share (kötelesrész) rules described below.

Making a Valid Will

Types of Wills

Hungarian law provides several forms of valid wills:

• Holographic will (saját kezűleg írt végrendelet): The testator writes the entire document by hand, dates it, and signs it. No witnesses are required, making this the simplest and most common form.
• Allographic will (más által írt végrendelet): A will typed or written by someone other than the testator. It must be signed by the testator in the presence of two witnesses, who must also sign the document.
• Notarial will (közvégrendelet): Executed before a notary public (közjegyző), this form offers the highest level of legal certainty and is recorded in the National Will Registry.
• Oral will (szóbeli végrendelet): Permitted only in exceptional, life-threatening circumstances and subject to strict conditions and time limitations.

Capacity and Restrictions

Any person over the age of 18 with legal capacity may make a will. Minors between 14 and 18 may execute a will only in notarial form. The testator must act of their own free will; undue influence, duress, or fraud renders the will voidable.

Content Requirements

A will may contain dispositions regarding the testator’s entire estate or specific assets, appoint heirs, legatees, or executors, impose conditions, and disinherit certain heirs (within legal limits). Testators frequently use wills to appoint a guardian for minor children or to create testamentary trusts (bizalmi vagyonkezelés).

Intestate Succession: The Statutory Order

When a person dies without a valid will—or to the extent the will does not cover the entire estate—the following statutory order applies:

1. Descendants (leszármazók): Children inherit in equal shares. If a child has predeceased the testator, that child’s share passes to their own descendants by representation (helyettesítés).
2. Surviving spouse (túlélő házastárs): The spouse receives a usufructuary right (haszonélvezeti jog) over the entire estate. In practical terms, this means the spouse can use and enjoy the estate assets during their lifetime while ownership vests in the descendants. Alternatively, the spouse may opt for a so-called “child’s share” (gyermekrész) in lieu of the usufruct.
3. Parents (szülők): If the deceased left no descendants, the parents inherit in equal shares.
4. Siblings and their descendants: If neither parents nor descendants survive, siblings and their issue inherit by representation.
5. Grandparents and further ascendants: The line continues upward through grandparents and great-grandparents.
6. The Hungarian State: As a last resort, the estate escheats to the State.

The Position of the Surviving Spouse

The legal position of the surviving spouse warrants special attention. Under the current Civil Code, if the deceased left both a spouse and descendants, the spouse does not receive outright ownership of a share of the estate. Instead, the spouse acquires a lifelong usufructuary right over the estate. This can create practical tensions, particularly when the relationship between the surviving spouse and the descendants is strained. The parties may, of course, negotiate a settlement in the probate proceedings.

Compulsory Share (Kötelesrész)

One of the most distinctive features of Hungarian succession law is the compulsory share—a mandatory portion of the estate that certain close relatives are entitled to receive, regardless of the testator’s wishes.

Who Is Entitled?

Compulsory share claimants include:

• Descendants (children, grandchildren)
• The surviving spouse
• Parents of the deceased

Amount of the Compulsory Share

The compulsory share equals one-third of the statutory intestate share that the claimant would have received in the absence of a will. For example, if a child would have inherited 50% of the estate under intestate succession, their compulsory share is one-sixth (50% × 1/3).

Disinheritance and Unworthiness

The testator may disinherit a compulsory-share claimant only on grounds specified by law, such as:

• The heir attempted to take the testator’s life or committed a serious crime against the testator.
• The heir gravely neglected their statutory maintenance obligations toward the testator.
• The heir was sentenced to imprisonment for an intentional criminal offence.

The grounds must be stated in the will. Additionally, a person may be declared unworthy of inheritance (érdemtelenség) by the court if they committed certain serious acts against the deceased or the deceased’s will.

Probate Proceedings (Hagyatéki eljárás)

In Hungary, probate is conducted by a notary public (közjegyző) acting in a quasi-judicial capacity, not by a court. The process typically unfolds as follows:

1. Death registration and notification: Upon a person’s death, the registrar notifies the competent notary.
2. Inventory of the estate: The notary (often through the municipal clerk) compiles an inventory of the deceased’s assets, debts, and heirs.
3. Probate hearing (hagyatéki tárgyalás): The notary convenes a hearing at which heirs may accept or renounce the inheritance, contest the will, or negotiate the distribution of assets.
4. Probate order (hagyatékátadó végzés): If all parties agree, the notary issues an order transferring the estate to the heirs. If there is a dispute, the notary refers the matter to the court.

Timeframe and Costs

Probate proceedings generally take between three and twelve months, depending on the complexity of the estate and whether disputes arise. Notarial fees are regulated by decree and are calculated as a percentage of the estate’s value, subject to minimum and maximum amounts.

Inheritance Tax

Hungary abolished inheritance tax between close relatives (spouses, descendants, ascendants) as of 2010. However, inheritance received by more distant relatives or unrelated persons may be subject to a gratuitous transfer tax (illeték) at rates ranging from 9% to 18%, depending on the value and the relationship.

Cross-Border Inheritance

For estates with cross-border elements, the EU Succession Regulation (No. 650/2012) applies. Under this regulation, the law applicable to the succession is generally the law of the State in which the deceased had their habitual residence at the time of death. However, a person may choose to apply the law of their nationality instead. Hungarian nationals living abroad should consider making a choice-of-law clause in their will if they wish Hungarian law to govern their succession.

Practical Recommendations

• Make a will: Even if you are content with the statutory order of succession, a will can simplify and accelerate probate, reduce disputes, and allow you to make specific bequests.
• Consider a notarial will: For complex estates or cross-border situations, a notarial will provides maximum legal certainty and is automatically recorded in the National Will Registry.
• Review your will periodically: Major life events—marriage, divorce, the birth of a child, acquisition of significant assets—should prompt a review.
• Consult a lawyer: Inheritance law intersects with tax, family, and property law. Professional advice can help avoid costly mistakes and ensure your wishes are properly documented.

Conclusion

Hungarian inheritance law balances individual testamentary freedom with the protection of close family members through the compulsory share mechanism. The probate process, administered by notaries public, is generally efficient and well-structured. Whether you are planning your own estate or navigating the succession of a loved one, a clear understanding of these principles—and timely professional guidance—can make the process considerably smoother.

This article is for informational purposes only and does not constitute legal advice. For advice tailored to your specific situation, please contact our office.