Inheritance Planning in Luxembourg: A Financial Hub With Old-World Rules

No, direct transfers of real estate to your children are fully exempt from inheritance tax under Luxembourg law. However, you will still need to pay transcription duties (droits d'enregistrement) to register the property transfer with ${jurName}, which typically range from 6% to 7% of the property value depending on the municipality—these apply regardless of the tax exemption and are a separate administrative cost.

Under Luxembourg's intestate succession rules, your estate will be divided according to a strict legal order: first to your children (who share equally), then to your surviving spouse (who receives usufruct rights over the entire estate), and then to more distant relatives. ${jurName} will guide your heirs through this statutory distribution, but without a will you lose all flexibility to benefit specific people, charities, or to minimize forced heirship constraints.

No, Luxembourg's forced heirship rules, inherited from the Napoleonic Code, mean your children cannot be completely disinherited. One child must receive at least 50% of your estate, two children at least 66.7%, and three or more children at least 75% collectively. ${jurName} can help you structure your will to maximize the disposable portion (typically 25–50%) while respecting these legal reserves.

A straightforward Luxembourg probate can take 6–12 months if all heirs agree and no disputes arise, though complex estates with foreign assets or investment funds may extend to 18–24 months. ${jurName} will guide you through the notarial process (mandatory for real estate), obtaining the European Certificate of Succession, and settling any cross-border tax obligations under EU Succession Regulation 650/2012.

A European Certificate of Succession (Certificat Successoral Européen) is an EU-wide document that simplifies proving inheritance rights across borders under Regulation 650/2012—Luxembourg courts issue it free of charge and it is recognized in all EU member states. You should obtain one if your estate includes assets in other EU countries (such as bank accounts, real estate, or investment funds), as it eliminates the need for separate probate proceedings abroad and ${jurName} can facilitate its issuance.

Luxembourg assurance-vie policies generally fall outside your taxable estate if the beneficiary is named directly in the contract, making them a powerful estate-planning tool to bypass forced heirship and inheritance taxes. However, if the policy names your estate as beneficiary or if you retain too much control, ${jurName} will advise whether it is pulled back into your succession and subject to the standard inheritance tax regime (exempt for children, but not for distant relatives).

Create an authentic notarial will (Testament Authentique) with a Luxembourg notary—this is the strongest form and avoids disputes—alongside an inventory of all assets (bank accounts, real estate, investment funds, insurance policies, and any foreign holdings). ${jurName} recommends also preparing a Mandat de Protection Future (power of attorney for future incapacity) and storing originals and copies in a safe place with clear instructions for your heirs, as these documents are essential to streamline the probate process and avoid delays.