What Does a Child Inherit?
One of the most frequently asked questions in succession law is what a child inherits when one of the parents dies. Many people believe that the child automatically inherits the entire estate in every case, but the rules of intestate succession are more nuanced than that.
The extent of the inheritance depends on whether a surviving spouse remains, how many children there are, and whether a will was made.
The Child Is the Primary Intestate Heir
Under the Hungarian Civil Code, the deceased’s children inherit first.
If the deceased has several children, as a general rule they inherit in equal shares.
Example
If the deceased has three children and there is no circumstance that would alter the order of succession, the estate must be divided into three equal parts.
What Happens If One of the Children Has Already Died?
The law protects the descendants of a child who has fallen out of the succession.
If one of the children died before the deceased, that child’s own children (the deceased’s grandchildren) inherit in their place.
They share in equal proportions the share that would have been due to their parent.
An example
The deceased had two children.
One of the children had already died, but left two children behind.
In this case:
- the surviving child inherits half of the estate;
- and the two grandchildren inherit the other half, in equal shares between them.
What Does a Child Inherit If the Deceased Also Has a Spouse?
If a spouse also survives the deceased, the children’s succession applies together with the spouse’s succession rights.
In this case:
- as a general rule, the children inherit ownership of the jointly occupied home;
- the surviving spouse is entitled to a lifelong usufruct right over that property;
- and from the rest of the estate the spouse inherits a share equal to that of a child.
Accordingly, the children acquire ownership of the jointly occupied property, but cannot use it freely while the usufruct right subsists.
Do Siblings Inherit in Equal Shares?
Yes.
Under the law, children inherit in equal shares per capita, unless a valid will provides otherwise or a special rule of succession applies.
What Is Hotchpot (Bringing into Account)?
One of the lesser-known rules of succession law is hotchpot, the bringing of lifetime gifts into account.
Its purpose is to make the division of the estate fairer among siblings.
If, during their lifetime, the deceased gave one of their children a gratuitous benefit of significant value – for example a flat or a larger sum of money – this must in certain cases be taken into account in the succession.
Hotchpot is not automatic, however. It applies if:
- the deceased expressly stipulated it; or
- it can clearly be inferred from the circumstances that the benefit was given with the intention of setting it off against the later share of the estate.
Gifts of customary value – such as birthday or wedding presents – generally do not fall within the scope of hotchpot.
What Happens If One Child Has Already Received a Significant Gift?
If the conditions for hotchpot are met, the combined value of the estate and the gratuitous benefits received earlier must first be established in the course of the succession.
From this, the theoretical share of each heir is calculated, and then the benefit previously received by the child who was given the gift is deducted.
This ensures that the estate is divided among the siblings in accordance with the deceased’s original intention.
What Happens If There Is a Will?
If the deceased made a will, its provisions primarily govern.
This does not mean, however, that the child loses out on the inheritance in every case. Where the statutory conditions are met, a descendant may also be entitled to a compulsory share.
When Is It Worth Consulting a Lawyer?
It is worth seeking the assistance of a lawyer experienced in succession law, particularly if:
- several children inherit;
- one of the children has already died;
- significant lifetime gifts were made;
- a dispute arises over the question of hotchpot;
- a will was made;
- real property or a business of high value also forms part of the estate.
Appropriate legal advice can help the probate procedure to be concluded more quickly and without family conflict.
Frequently Asked Questions
Do children inherit in equal shares?
Yes. Under the Hungarian Civil Code, several children inherit in equal shares per capita as a general rule.
What does a grandchild inherit?
If the deceased’s child is no longer alive or falls out of the succession for another reason, that child’s own children – the deceased’s grandchildren – inherit in their place. They share in equal proportions the share that would have been due to their parent.
What is the essence of hotchpot?
Hotchpot serves to ensure that certain significant gratuitous benefits given during the deceased’s lifetime are taken into account in the succession, where the deceased stipulated this or it can clearly be inferred from the circumstances.
Does a child inherit even if there is a spouse?
Yes. The child remains an intestate heir. As a general rule the children inherit ownership of the jointly occupied home, while the surviving spouse is entitled to a lifelong usufruct right over that property and inherits a child’s share from the rest of the estate.
Summary
Under the Hungarian Civil Code, a child is a primary intestate heir. Where there are several children, as a general rule they inherit in equal shares, and the descendants of a child who has fallen out of the succession step into their place. The exact extent of the inheritance may nevertheless be affected by the surviving spouse’s succession rights, by a will, and by the application of the rules on hotchpot. In the event of a succession dispute or an uncertain legal situation, it is advisable to consult a lawyer before or during the probate procedure.
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