“Contribution” in Cypriot Inheritance Law

It is well known that Cypriot inheritance law contains strict restrictive provisions in favor of the deceased’s family. These provisions not only limit the disposition of assets via will—protecting the lawful share of children and the spouse—but also provide for the distribution of the estate in a fair manner among descendants, taking into account, under certain conditions, assets granted before the deceased’s passing.

According to Article 51 of Cap. 195, when children or descendants of children are called to inheritance, in order to correctly calculate their share, assets received from the deceased during their lifetime must also be considered and included. These may have been given either under a marriage settlement, as dowry, or as a donation mortis causa.

In other words, the value of assets received by a descendant under the above circumstances is deducted when defining their share of the estate.

It is worth mentioning that Article 51 may be bypassed by an express provision in the will.

A donation mortis causa concerns movable property only, given by a mentally competent adult, in the presence of two witnesses, under the belief that death is imminent. In the case of Re Craven’s Estate (1937) Ch 423, it was ruled that the criterion for the imminence of death is both subjective and objective. Specifically, the court must consider both the existence of an illness and the donor’s belief that death is approaching.

With regard to advancement during lifetime, a key first-instance decision is M. Enver v. A.R. Kasim and others, in which the following was stated:

“Advancement” by way of portion is something given by the parent to establish a child in life or to make what is called a provision for him, not a mere casual payment of this kind. It is not every payment made to a child which is to be regarded as an advancement. It is a payment which has been made for the settlement of the child or the purpose for which the payment was made has been shown to be that which everyone would recognize as being for establishing the child or making a provision for the child.”

As mentioned, a lifetime gift will only be considered a contribution for the purposes of the relevant article if it is proven that the gift was made for the settlement of the child—not merely a casual payment. That said, small amounts for daily expenses, a piece of jewelry, or even the donation of one property (among many) to a child who already owns a primary residence likely would not be considered an advancement. In contrast, a substantial sum to start a business or the purchase of a property for housing would be seen as an advancement.

Thus, not all assets given by the testator during their lifetime to their children will be taken into account under this article. However, if an asset was given as an advancement, under a marriage settlement, as dowry, or as a donation mortis causa, then it will be included in the calculation of the inheritance share.

For example, if a deceased person leaves a net estate of €350,000 and has two children, and one of the children received a lifetime gift of €25,000, the inheritance shares must be recalculated to avoid unjust enrichment. Whereas normally each child would receive €175,000, by deducting the €25,000 from the share of the child who received the gift, the adjusted amounts would be €162,500 for that child and €187,500 for the other.

This article is for informational purposes only and should not be considered legal advice.