Court of Review • Scope of renunciation of succession opened before the entry into force of the PIL Code

Court of Review, civ., 25 March 2025, Appeal No. 2023-42 (on referral after cassation) ● International succession ● Succession option ● Territorial scope of renunciation

Our Civil Law Department draws attention to this ruling by the Monaco Court of Review ("Cour de révision"), which highlights the importance of assessing the territorial scope of the renunciation of an international succession (whether universal or not), taking into account the applicable substantive law(s) and the possible fragmentation of the succession into different estates, which may lead to different legal effects depending on the location of the assets.

Facts

This case involved two heirs, brothers, following the death of their mother, a Swiss national residing in Monaco and owner of movable and immovable property located in Monaco, Switzerland and Italy.

One of the two heirs had renounced the succession in Monaco, which had been opened before the entry into force of the Monegasque Code of Private International Law (Code DIP).

Legal issue

Does renunciation of succession under Monegasque law apply to the entire estate, regardless of the location of the assets (in Monaco, Switzerland and Italy), or only to assets located in Monaco?

Decision of the Court of Review

The Court of Review ruled:

• the inapplicability of Chapter V - Successions of the Code DIP to successions opened before the entry into force of the Code DIP (in accordance with Law No. 1.529 of 29 July 2022), to which the former divisive/sepatationist regime applies (which may result in the fragmentation of the succession with the application of several succession laws);
• the immediate and autonomous application to successions opened before the entry into force of the Code DIP of Article 24 of the Code DIP, which excludes any reference to the rules of private international law of the applicable foreign law (see also Court of Revision, judgment of 18 March 2024, Appeal No. 2023-42);

The Court concluded that the heir to an international succession opened before the entry into force of the Code DIP, falling under the separationist regime, may opt differently according to the various estates.

On the merits, the Court accepted the partial renunciation, considering that the formal renunciation in Monaco was only valid for property located in Monaco, and not for property in Switzerland and Italy.

Points to consider

Renouncing an inheritance may be motivated by legal, financial or personal reasons (liabilities exceeding assets, avoiding family conflict, avoiding burdensome administration, etc.).

In the context of an international inheritance, renunciation raises important practical issues: depending on the applicable law, it may or may not apply to the entire estate, regardless of the country in which the assets are located, hence the need for great caution before making a decision.