The Inheritance Contract under the New Greek Inheritance Law

One of the most significant innovations of the new Greek inheritance law is the introduction of the inheritance contract mortis causa, an institution that has not, until now, been recognized under Greek law. For the first time, the person whose estate is at issue is given the ability to regulate their succession by contract, without this doing away with the fundamental principle of freedom of disposition. The inheritance contract is a standalone institution, distinct from a will, and is governed by specific rules as regards its formation, its binding effect, and its relationship with other testamentary dispositions.

Article 1798 of the Greek Civil Code introduces, for the first time in Greek inheritance law, the inheritance contract mortis causa. Through it, the person disposing of the estate may appoint an heir, establish a trust, leave a legacy, impose a condition or obligation, or choose the law applicable to their succession. The beneficiary may be either the other contracting party or a third person, and more than one contracting party may dispose of their assets within the same contract. The contract must be concluded before a notary, with the personal presence of all contracting parties, and the provisions on capacity to draft a will apply to the capacity of the person disposing of the estate. Since this is a contract mortis causa, the beneficiary does not acquire an expectant right over the estate before succession opens.

The main distinction from a will concerns its binding effect. While a will may be revoked or amended at any time by the testator until their death, the provisions of an inheritance contract cannot be unilaterally revoked by the person who disposed of the estate (Article 1799 of the Civil Code). The beneficiary nonetheless retains the right to accept or renounce the inheritance once succession opens, notwithstanding having entered into a contract with the deceased.

As regards its relationship with wills and other testamentary dispositions, an inheritance contract may be amended or terminated by a new contract between the same parties, concluded in the same form (Article 1800 of the Civil Code). An earlier will is set aside only to the extent that it conflicts with the inheritance contract, while a later will, or an inheritance contract with another person, produces no effect to the extent that it conflicts with an earlier inheritance contract.

As for its effect on lifetime dispositions, an inheritance contract does not, in principle, deprive the person who disposed of the estate of the freedom to dispose of their assets during their lifetime, since it does not give rise to an expectant right on the part of the beneficiary. The parties may nonetheless agree that the restriction on the disposing party’s power of disposal has purely contractual (obligatory) effect under Article 177 of the Civil Code. At the same time, if the person who disposed of the estate makes a gratuitous disposition of their assets to the detriment of the beneficiary, effectively acting in an abusive manner, the beneficiary has, once succession opens, the right to bring an action to set aside the gratuitous transaction. Once set aside, its subject matter may be recovered under the provisions on unjust enrichment — a mechanism intended to balance the disposing party’s freedom of disposition against the protection of the beneficiary under the contract (Article 1801 of the Civil Code).

Article 1805 of the Civil Code governs the case where the person disposing of the estate does so mortis causa in exchange for consideration provided during their lifetime by the other contracting party. In the event of non-performance or defective performance of that consideration, the disposing party may withdraw from the contract. Correspondingly, a right of withdrawal is also recognized for the other contracting party where good cause exists, in particular where the disposing party acts contrary to the inheritance contract or renders performance of the consideration impossible or particularly difficult. Withdrawal is effected by notarial declaration.

Finally, despite the introduction of the inheritance contract as a contract of obligation, the legislator continues to treat as void any contract by which the person disposing of the estate undertakes an obligation to draft, or not to draft, a testamentary disposition, or to revoke it, or not to revoke it (Article 1807 of the Civil Code). A contract by which the disposing party undertakes an obligation to draft a testamentary disposition in favor of a specific person may, however, take effect as an inheritance contract mortis causa, provided the requirements of Articles 1798 to 1806 of the Civil Code are met.

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