Succession planning is crucial to ensure a straightforward transition of family wealth and estate, and the jurisdictions in which the deceased, the heirs and the estate are located pose significant legal implications on succession.
Under Maltese law, the doctrine of lex situs applies, thus the law governing the causa mortis transfer of title to property depends on the location of the property to be inherited. The EU Succession Regulation, harmonizes succession in European Member States and provides that, as a general principle, the courts of the Member State in which the deceased had his habitual residence at the time of death have jurisdiction, unless the deceased had chosen the law of the state of his or her nationality to apply. Furthermore, inheritance is not taxed in Malta, and only stamp duty is paid on the transfer of immovable property.
A thorough understanding of the relevant legal regime regulating succession and taxation is crucial to ensure an effective and tax efficient transfer of generational wealth. Novolegal’s private client practice provides advisory services in relation wills, estate planning, succession and personal taxation to ensure that the family’s interests are safeguarded