Trusts & Equity in Cyprus: Administration & Distribution of an Estate
The administration of a deceased individuals Estate in Cyprus is regulated by the relevant trust laws which provides who can be appointed as the estate Administrator, with the instruction of a will if provided, the powers and duties of the Administrator and the probate registrar, how the estate will be administered and distributed between the beneficiaries and how any remaining debts of the deceased shall be accounted for.
Below are the steps taken by the Administrator of a trust in Cyprus to deal with the estate accordingly. After the issuance of a probate order, the Administrator must provide the court with the following documents:
- Information regarding the beneficiaries or heirs of the deceased.
- An estimated valuation of the estate.
- All movable, immovable property and any outstanding debts.
- A written declaration by the beneficiaries consenting to his appointment.
The Administrator must then sign a bond for double the value of the estate together with a guarantor that he will execute his duties in accordance with appropriate trust laws and the will of the deceased. A temporary tax release certificate is also necessary for the issue of the probate order.
Once the probate order has been obtained, an Administrator is obliged to file in court an inventory of the estate accompanied by an affidavit and he shall, in administering the estate, obtain the tax release certificate and pay any taxes as specified. His main duties are to collect and get the estate, pay the funeral and testamentary expenses, pay all the just debts of the deceased leaving the residual estate.
The fair debts of the deceased shall be liquidated by the Administrator in the following order of priority:
- Administrator remuneration.
- Funeral expenses & expenses of the medical treatment of the deceased if any.
- The wages due to any employees of the deceased, not exceeding wages for the previous six months.
- Any other outstanding debts according to the order of the priority.
Where there are no adequate funds in the estate to pay the debts or other obligations such as taxes, the Administrator will apply to the court for guidance and an order as to whether part of the estate will be sold, mortgaged or leased a to cover the amounts owed.
The Administrator must finally submit the final accounts to the probate registrar, including details and receipts accompanied with a writer declaration signed by the beneficiaries stating that they have received their inheritance right in order for the administration to be considered as complete. The probate registrar finally examines the concluding accounts and provided all administration has been correctly executed, the Administrator is released from his duties.
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