1. The Testator
A testator is an individual whose assets are passed on to living persons after their death, either according to their will or as stipulated by law. A testator can only be a natural person, regardless of their social background or capacity for civil acts.
Citizens have the right to own legal income, savings, and housing. While alive, they have the right to engage in civil transactions with these assets or to make a will for others to inherit their property after death. If a citizen with private property does not leave a will, the property will be divided in accordance with the law.
As for legal entities, they are established for different purposes and functions. The assets of a legal entity are used to maintain its own operations. No individual has the right to dispose of a legal entity’s assets. When a legal entity ceases its operations (e.g., through dissolution or bankruptcy), its assets are resolved according to legal provisions. Legal entities can participate in inheritance relations as beneficiaries under a will.
2. The Heir
An heir is a person who inherits an estate either by will or by law. An heir by law can only be a natural person and must have a marital, blood, or adoptive relationship with the deceased. An heir by will can be an individual, a legal entity, or the State. Heirs have rights and obligations regarding the assets left by the deceased.
An individual heir must be alive at the time the inheritance is opened; a person conceived at the time the inheritance is opened and born alive is also considered an heir. A legal entity or organization that is an heir must still be in existence at the time the inheritance is opened (Article 613 of the Civil Code of Vietnam 2015). Heirs must fulfill the following obligations:
- Heirs are responsible for fulfilling the deceased’s financial obligations within the scope of the inherited estate, unless otherwise agreed upon. In such cases, the law encourages heirs to perform all of the deceased’s obligations, even if no estate remains. This is considered a moral obligation of children towards their parents.
- If the estate has not yet been divided, the deceased’s financial obligations shall be carried out by the estate manager, as agreed upon by the heirs.
- If the estate has already been divided, each heir shall fulfill the deceased’s financial obligations proportionally, but not exceeding the value of the assets they have received, unless otherwise agreed upon.
- If the State, a government agency, or an organization inherits an estate by will, they must also fulfill the deceased’s financial obligations in the same way as an individual heir.
An heir has the right to accept the inheritance either by will or by law. Additionally, an heir has the right to renounce the inheritance, except when such renouncement is an attempt to evade their financial obligations to others.
Example: An heir who has a debt to pay or is liable for damages to another person may claim to have no assets to fulfill the obligation, while simultaneously renouncing their right to inherit the estate to avoid paying the debt or compensation.
