Under Hungarian jurisdiction, inheritance occurs instantly and automatically upon the decease of the successor by virtue of the law, no further action or act of public authority is required. The Hungarian civil law acknowledges the freedom of testation as is the right of the possessor to arrange for his property upon his death, this freedom is only limited by the provisions on compulsory share.

Given that the order of succession is primarily determined by the last will of the testator, the law appoints the heir only in case the testator did not exercise his right to do so or If the share of the named heir does not cover the whole estate.

Fundamental amendment in the Hungarian legal regulation is that besides the descendants, the spouse is also an heir to the estate and entitled to a share equal to that of a child.

Among the descendants, the children of the testator shall be deemed as intestate, legal heirs. If there’s more than one child, children shall each inherit in equal shares.

Furthermore in the absence of a spouse and a child, the ascendants and collateral relatives inherit in equal shares. In the absence of an intestate heir or an heir named in a testament, the intestate heir shall be the State, as the ultimate intestate heir.

In case of succession it is important to draw attention to the obligation to pay inheritance tax (also called death tax). The general rate of inheritance tax is 18% of the net value of the estate distributed to the heirs and legatee. In case of gratuitous succession of realty or rights of pecuniary value connected to realty the general rate of inheritance tax is 9%. The relevant legislation gives a taxation in which case we are exempt from paying duty. The lineal relative of the testator – including kinship based on adoption – or the surviving spouse is not subject to pay tax at all.