Change in the inheritance of agricultural lands

The Constitutional Court decided: rules of the inheritance in the act on the trading of agricultural lands are to be changed. The Constitutional Court ruled that the Parliament caused unconstitutionality by failure when adopted the act on the trading of agricultural lands.
 
Previously, we discussed in details the topic of inheritance of agricultural lands including that in case of testamentary succession, the acquisition of ownership depends on the approval from the authority if the legatee is not eligible for being a legal heir.
 
According to the recently published decision of the Constitutional Court, it is unconstitutional that the legislative body has failed to adopt a regulation that would provide an allowance (compensation) to the legatee if the authority rejects the approval of the acquisition of ownership through testamentary succession provided that the estate escheats to the state.
 
The Hungarian Civil Code stipulates that the Hungarian State is a necessary heir in the absence of other heirs.
 
Following the amendment of the act, in practice the legatee, who has been left out, will be entitled to compensation only if there is no legal heir under the Civil Code, thus the Hungarian State will inherit.
 
If the authority rejects to approve the acquisition of ownership of the legatee but there is a legal heir (besides the Hungarian State), then the legatee may not assert any claim against the legal heir on the grounds of the provisions of the will, meaning that the legatee will not be entitled to compensation.
 
For personalized information contact our experts at Ecovis Hungary Legal. We are pleased to assist you.