Succession contracts

Succession contracts: transfer of property inter vivos

By making a testament, the testator ensures that his property will be distributed among his heirs after his death in accordance with his will. However, you can distribute your property during your lifetime to your descendants or other persons whom you wish to receive your property.

By concluding a succession contract, you can ensure that your property is distributed in accordance with your wishes, while at the same time avoiding any disputes that may arise in the succession proceedings between your heirs in relation to your property.  However, you will have to conclude each of the succession contracts in a notarial deed.

Contract for the delivery and distribution of property ("delivery contract")

The conclusion of a delivery contract enables the deliverer to transfer his immovable or movable property, which he has at that moment, free of charge to one or more of his descendants immediately after the conclusion of the contract. It has the peculiarity that it will be valid only if all the descendants agree to it. So, if you have two descendants and you want to give your real estate to only one descendant by means of a delivery contract, the other descendant must agree to it. Otherwise, the contract will be void and the part of the property (in this case, the real estate) will be considered as a gift, in respect of which the other descendant who did not agree to the contract may have a claim in the succession proceedings.

Contract of subsistence

In a contract of subsistence, a person transfers ownership of immovable property to another person, who in return must provide certain benefits and services to this person or to someone else - in practice, this is most often seen as a lifetime easement of the home, and care, nursing and similar assistance in the event of sickness and old age. Unlike a contract of delivery, which can only transfer property to your descendants, you can also enter into a contract of subsistence with a third party, without needing the consent of your descendants. Moreover, it is considered a contract for remuneration because the acquirer of the property repays it with his/her benefits and services.

Contract of lifetime maintenance

This is a contract whereby the maintaining party undertakes to take care of the maintained party until the latter's death and, in return, the maintained party leaves certain property to the maintaining party after death. Like a contract of subsistence, it is considered to be a contract for remuneration. Even if they are similar in substance, there is a notable difference with a contract of subsistence. If you enter into a contract of subsistence with someone, that person will become the owner of your property upon its conclusion, whereas if you enter into a contract of lifetime maintenance, your contracting party will become the owner of the property only after your death.

Legal advice and further information

As each succession contract has its own peculiarities, it is advisable to consult a professional to find out which type of contract is best suited to your wishes and needs. Križanec & Partners Law firm in Slovenia, offers professional advice and legal representation in the conclusion of succession contracts. For further information, please contact our expert in succession law, associate Lara Amršek. On our website you can find out more about succession contracts and other legal solutions that can help you to distribute your property in accordance with your wishes.