2 September 2024
There is a mutual obligation for heirs to inform each other about the extent of the inheritance.
The extent is not always clear to all heirs. Has a loan perhaps been granted to one of the heirs? Has money been gifted or withheld by one of the heirs? What can you do if there is a suspicion that another heir is intentionally concealing a part of the estate?
It happens that one of the heirs does not disclose everything when an inventory of the inheritance is being prepared. For example, a bank account of one of the parents in Switzerland is not disclosed, or the mother’s jewelry has ‘disappeared’. All of this is assets that belong to the inheritance. There is a financial penalty for concealing an asset that belongs to the inheritance. If one of the heirs intentionally conceals, disposes of, or hides an asset belonging to the inheritance, they ‘forfeit’ their share in that asset to the other heirs. This is a sanction provision in the law.
The heir who suspects that there is a concealment of assets bears the burden of proof and will have to prove this. First, the heir must prove that the other person knows that the concealed asset belongs to the inheritance. Intentionally (and therefore wanting to) disadvantage the other heirs is not a requirement. This is the consequence and that is sufficient, regardless of whether the person who remained silent intended this.
If the concealment of assets is proven, the person who concealed the asset no longer shares in that asset. Therefore, only the other heirs benefit upon discovering a concealed asset. The person who conceals receives nothing more from this asset as a sanction.
If there is a suspicion of concealing assets, a first step may be to demand that a notarial inventory of the inheritance be drawn up. An inventory is a document describing the assets and liabilities on the day of death. It is a description of the inheritance. It can be demanded that the disclosure be made before a notary under oath or affirmation. Furthermore, the inventory serves as evidence if it later turns out that assets have been concealed.
In a case from the North Holland District Court on April 7, 2021, heir 1 transferred an amount of €60,000 to her own bank account before the death of the deceased (among other things). She concealed this amount from heir 2. Only after an executor was involved in settling the inheritance did heir 1 explain about the amount. The court considers that she was too late. Heir 1 should have voluntarily reported the amount and not waited for the findings and questions of the executor. Until the executor asked about it, she had always remained silent about receiving the amount. The transfer was also not included in a summary provided by heir 1. The court concludes that the sanction has been triggered. This means that heir 1 has forfeited her share in this asset. She must pay the full amount of €60,000 to heir 2.
It is important to note that a claim for distribution does not expire. Therefore, an heir can demand distribution of an asset at any time in the future if it turns out that assets have been concealed.
It should be noted that once concealed, always concealed. Each concealment can lead to forfeiture, even if distribution has not yet taken place (see the above judgment). An heir cannot first conceal an asset and then repent later. If concealment can be rectified later on, there is no discouragement of dishonest behavior.
Do you suspect concealment of assets? Would you like more information or a consultation with one of our attorneys? Feel free to contact us.
