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Inheritance property disputes are among the most common and complex types of civil disputes in Vietnam, particularly as the value of assets such as land use rights, residential housing, and business assets continues to increase. These disputes not only affect the rights and interests of heirs but also have a direct impact on family relationships and social stability.
Under the 2015 Civil Code, the property of a deceased person is transferred to surviving persons through two principal mechanisms: testate succession and intestate succession. Where there is a valid will, the distribution of the estate must respect the wishes of the deceased; where there is no will or the will is invalid, the estate is distributed in accordance with the statutory order of inheritance and applicable legal provisions. However, regardless of the applicable mechanism, disputes frequently arise concerning the validity of the will, the determination of heirs, the scope of the estate, compulsory inheritance rights, or the management of estate assets after the commencement of succession.
Notably, current Vietnamese law also recognizes a mechanism for restricting the distribution of an estate under Article 661 of the 2015 Civil Code. Accordingly, the distribution of an estate may be temporarily postponed in accordance with the wishes of the testator, by agreement among the co-heirs, or by a court decision where the distribution of the estate would seriously affect the living conditions of the surviving spouse and family. This provision reflects a balance between the right to dispose of property and the need to preserve family stability.
In practice, inheritance disputes are often prolonged and complex, influenced by family relationships, customs and traditions, as well as unclear management of estate assets. Therefore, examining property disputes with and without a will in Vietnam is significant in clarifying the current legal framework and assessing the practical challenges in its application.
Property Disputes Where There Is a Will in Vietnam
Testate succession refers to the transfer of property in accordance with the wishes of the deceased expressed in a will. The 2015 Civil Code recognizes the right of individuals to make a will designating heirs, distributing property, or disinheriting other persons. This reflects the principle of freedom to dispose of one’s property. Nevertheless, disputes relating to wills remain very common in practice.
One of the most common disputes concerns the validity of a will. The parties often argue that the will is invalid because the testator lacked testamentary capacity, was subjected to coercion, or because the will failed to satisfy formal requirements, such as the absence of qualified witnesses or indications of alteration or forgery. In many cases, the court must conduct examinations of signatures or handwriting or assess the testator’s health condition in order to determine the validity of the will.
In addition, disputes also arise from the contents of the distribution of the estate. Although Vietnamese Competition Law respects the wishes of the testator, this right is not absolute. The Civil Code continues to protect the inheritance rights of certain special categories of persons, including parents, spouses, minor children, and children who are unable to work, through the institution of heirs who are entitled to inherit regardless of the contents of the will. This gives rise to numerous disputes where the parties have differing interpretations of compulsory inheritance rights.
Furthermore, determining the scope of the estate is another common source of disputes, particularly with respect to marital property or assets acquired during the marriage. In many cases, the testator purports to dispose of the entire property even though he or she legally owns only a portion of that property.
Another noteworthy issue is the mechanism for restricting the distribution of an estate under Article 661 of the 2015 Civil Code. A testator may require that the estate be distributed only after a specified period in order to ensure proper management of the property or maintain family stability. However, the law does not prescribe a maximum period for such restriction, resulting in practical difficulties in its application and potentially affecting the rights and interests of other co-heirs.
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Property Disputes Where There Is No Will in Vietnam
Where a deceased person leaves no will or the will is invalid, the estate is distributed in accordance with the law. Under the 2015 Civil Code, heirs within the same order of succession are entitled to equal shares of the estate. Nevertheless, disputes arising in cases of intestate succession account for a substantial proportion of inheritance cases adjudicated in Vietnam.
A common cause of dispute concerns the legal status of heirs. The parties frequently disagree regarding blood relationships, adoptive relationships, or marital relationships, particularly in cases involving adopted children, children born out of wedlock, or de facto marriages. The absence of documentation or inconsistencies in the available evidence often makes the verification process considerably more difficult.
Disputes also arise in determining the scope of the estate and the applicable order of succession. In many instances, it is unclear whether certain assets constitute separate property or marital property, particularly in relation to land use rights and business assets. This results in disputes not only among co-heirs but also with third parties having related legal interests.
In practice, before an estate is distributed, the estate remains under the joint ownership of all co-heirs. However, there are cases where one person exclusively manages or uses the entire estate over an extended period, giving rise to disputes concerning management rights, the collection of profits and benefits, or compensation for preserving the estate.
In addition, disputes relating to the statute of limitations are also common. Under the 2015 Civil Code, the limitation period for requesting the distribution of an estate is 30 years for immovable property and 10 years for movable property from the date the succession commences. However, many families leave estate assets undivided for long periods, and disputes arise only when the value of the assets increases significantly or when a transfer of the assets becomes necessary.
The law also permits restrictions on the distribution of an estate in cases of intestate succession through the agreement of the co-heirs or by a court decision where the distribution of the estate would seriously affect the living conditions of the surviving spouse and family. Although this provision reflects humanitarian considerations, it remains difficult to apply because it requires the consent of all heirs and because the criterion of “seriously affecting” living conditions remains largely qualitative.
Assessment of Vietnamese Law on the Resolution of Inheritance Property Disputes
Vietnamese civil law has established a relatively comprehensive legal framework governing inheritance, including both testate and intestate succession. The 2015 Civil Code not only protects individual property rights but also emphasizes the preservation of family stability and the mitigation of adverse consequences arising from the distribution of inherited property.
One notable strength is that Vietnamese Competition Law recognizes the principle of freedom to dispose of property through the institution of testate succession. A testator has the right to determine the beneficiaries of the estate and the manner in which the estate is distributed. At the same time, the law continues to protect vulnerable persons, such as elderly parents, spouses, and minor children, through the provisions governing heirs who are entitled to inherit regardless of the contents of the will.
Furthermore, Article 661 of the 2015 Civil Code concerning restrictions on the distribution of an estate is regarded as a significant development in Vietnamese law. This provision permits the temporary postponement of estate distribution in order to protect surviving family members or preserve family stability, thereby achieving a balance between property rights and broader social interests.
Nevertheless, the current legal framework still contains several shortcomings. It is advisable to refer to the regulations governing dispute resolution through International Arbitration in Singapore in order to proactively adopt and incorporate suitable best practices into Vietnam’s legal system. One significant limitation is the absence of a clear statutory time limit for restrictions on estate distribution imposed by the wishes of the testator or by agreement among the co-heirs. This may result in unreasonably prolonged restrictions that adversely affect the rights and interests of other heirs.
Moreover, the requirement that all heirs must unanimously agree before restrictions on estate distribution may be imposed by agreement also reduces the practical feasibility of the provision. If even one heir refuses to consent, the restriction cannot be implemented.
In addition, the criterion of “seriously affecting living conditions” in cases where a court decides to restrict the distribution of an estate remains highly subjective. Although guidance has been issued by the Council of Judges of the Supreme People’s Court, its application in practice remains inconsistent, thereby reducing legal predictability and creating difficulties for parties seeking the application of the mechanism for restricting estate distribution.
Overall, Vietnamese law governing the resolution of inheritance property disputes has made considerable progress in protecting property rights and preserving family stability. However, to enhance its effectiveness in practice, the legal framework should continue to be refined so that it becomes clearer, more transparent, and more consistent.
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