Inheritance in Egypt

[Sam]

MS - You may want to get your sticky tape out and combine this with the thread ^^^ up there

This article has been written recently and it applies to anybody who has an asset within Egypt, that includes a business, a property, a car or simply money in the bank.


Inheritance in Egypt

One of the most frequently asked questions from a purchaser when buying a property abroad is “what will happen when I die?” and the answer is unfortunately not as straight forward as the question. When a property is obtained on a 99 years usufruct basis then the answer is simple, since the purchaser is not actually a landlord but a usufructuary and therefore the inheritance laws of the state are not applied. If a named purchaser should die then the remainder of the usufruct period shall transfer back automatically and irrevocably to the freeholder unless otherwise stipulated and agreed. Should all the named purchasers of a usufruct contract pass away then the possession of the property will legally revert back to the freehold owner. Protecting your next of kin in these cases is simple, via a next of kin addendum articulated by a professional lawyer.

In the cases where a property is owned on a freehold basis then the inheritance laws of Egypt apply. A will that is written the Purchaser's home country will not suffice since it is governed by their country’s laws and the property being in Egypt is governed by Egyptian law. The state would not recognise a foreign will on Egyptian property.

A common misconception is that the simple solution, therefore, is to write a will in Egypt. The will would be written in Arabic (with another language translation if desired) and this would allow the landlord to pass their freehold right on a property to their desired next of kin. However, whereas laws within other countries honour the requests of a will, whatever they may, the inheritance laws of Egypt are very specified and should a request in an Egyptian will contradict said laws then the request would not be honoured.

When a freehold owner of a property in Egypt dies, even if there are other named purchasers on the contract, then their portion of the property will be automatically distributed amongst their heirs according to the fixed laws of inheritance. There are tables and formulas set out with numerous scenarios according to the family situation of the owner. The law takes into consideration parents, grandparents, children, siblings, aunts, uncles and cousins and the percentage each would receive will depend on how many family members there are as well as their gender and their religion. Once the property has been redistributed upon death the new split ownership is legally irrevocable, whilst the inheritors have the right to dispose of their portion of the property as they may wish to do so, but it must be done in an official and legal way according to Egyptian law.

Wills do exist in Egypt. As previously mentioned, however, wills cannot contradict the already existing laws. Wills can be written to redistribute up to one third of the entire asset to another person(s) the owner chooses on the basis that such person(s) are not natural heirs and are not already accounted for by law outside of the will.

If a purchaser wishes to protect their next of kin in the way in which they choose and not according to the laws, as stated above, then alternative measures need to be taken.

[Sam]

For any person that this may apply to, I would ask you to conduct your own research on the matter and confirm that facts for yourself. There are many who encourage the writing of a will. I have not yet decided for myself if it is a sign of incompetence or deception, but neither is a good quality to have.