The procedure of administration of property is followed in case the deceased person who had permanent residence in Cyprus died without a will leaving property or in case the deceased person who had permanent residence in another country died without a will but left immovable property in Cyprus in relation to the immovable property located in Cyprus.
By issuing an administration order an administrator is appointed with the duty to undertake the repayment of all obligations and debts of the deceased person and then from the remainder of the estate a distribution is made to the beneficiaries.
The relevant laws regulating the succession of the estate of a deceased person in Cyprus are the Administration of Estates of Deceased Persons Law, Cap. 189, and the Wills and Succession Law (Cap. 195) and the Rules prescribed by these laws. But there are provisions provided in other laws which, in conjunction with the provisions of the aforementioned laws, delineate the appropriate procedures.
Pursuant to Article 42 of the Administration of Estates of Deceased Persons Act KEF.189 (hereinafter referred to as the “Act”):
“After the payment of funeral expenses and the expenses of those connected with the death and exercise of the function of the executor or administrator, and after the payment of the executor’s or administrator’s amnesty, the debts of the debtor shall be settled by the executor or administrator in the order of the lowest order of priority, (a) the deceased’s medical expenses incurred during his last illness and the wages due to his domestic servants, not exceeding six months’ wages. (b) debts covered by insurance in accordance with their order of priority. (c) any other debt.”
Before making the necessary representations to the Court it is necessary that all assets owned by the deceased person are recorded and that all relevant documents (title deeds etc.) and any debts/obligations are obtained and that all legal heirs and their share in the deceased person’s estate are recorded. In addition, the heirs will need to obtain a death certificate and certificate of heirship from the Master of the Commonwealth and will also need to decide who will be the administrator of the deceased person’s estate.
Article 31 of the Rules of Procedure for the Administration of the Estates of Deceased Persons 1/1955 (the “Rules”) clarifies the order of precedence in relation to the right to be appointed as administrator of the estate of a deceased person who died without a will.
Having recorded the above information and secured the above certificates, the heirs’ attorney will prepare the relevant Application for Administration or otherwise the Application for Conveyance and register it with the Court of the District where the deceased was domiciled.
The Petition for Administration shall state the estimated value of the movable and immovable property of the deceased as well as the names and particulars of the heirs entitled to the property, and shall further be accompanied by the death certificate, the certificate of heirs, the written consent of the heirs to the appointment of the trustee duly certified by the Commonwealth Registrar or certifying officer, the affidavit of the trustee, the surety bond in which the surety guarantees twice the value of the deceased’s estate, and which document together with the affidavit of the trustee is signed before the Registrar.
Once the Administration Application is registered, an application is made to the Tax Commissioner for a Certificate and then the Administration Decree is issued. The Administrator of the Estate within a time to be fixed by the Court shall prepare and file with the Court an inventory of the deceased’s property. The inventory shall state all movable and immovable items of the deceased’s estate with their value as well as his debts.
Finally, the trustee will be asked to submit interim and final accounts as to how the estate was managed. It is important that all relevant receipts are attached to the accounts.
It is the trustee’s duty to collect all of the deceased’s assets from which to cover any debts and to distribute the remainder of the estate, in accordance with the law, to the deceased’s heirs. When the administrator has entered the final accounts and they are approved by the Court then the administration is closed, that is, completed.
The contents of this article are for information purposes only for specific cases please contact our office.
