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 INHERITANCE LAW

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bigsavak
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PostSubject: INHERITANCE LAW   Sat Oct 23, 2010 2:05 pm

I found this and thought it might be useful .

INHERITANCE LAW

What inheritance laws apply in Bulgaria?

Inheritance is subject to Bulgarian Law.

Bulgarian Inheritance Law is governed by the Inheritance Act of 1949, the International Private Law Code of 2005 and the Civil Procedure Code of 1952 (effective until 1 March 2008, when the new Civil Procedure Code of 2007 comes into effect).
The disposal of assets held in Bulgaria by deceased Bulgarian nationals and foreigners is subject to Bulgarian Inheritance Law in compliance with the following principles:
• The law treats equally both local and foreign citizens, and makes no distinction on the grounds of religion, nationality, residence or other criteria.

• The inheritance of movable property is regulated by the law of the state where the deceased had usual residence at the time of his/her death. (An individual is considered to have usual residence in Bulgaria if he/she lives in Bulgaria for more than 185 days in each calendar year).

• The inheritance of immovable or real property is regulated by the law of the state where the property is situated ( lex rei sitae ).

• A foreigner may choose by will an estate to be dealt with under the law of his/her nationality (except for the “forced heirship” rules and reserved portion which cannot be affected by such choice).

• If the foreigner's national law provides that the relevant inheritance law is that of the country where his/her property is located (i.e. Bulgarian law), then the principles of Bulgarian Inheritance Law apply

• If Bulgarian law prescribes the application of a foreign law (e.g. for the inheritance of movable property), the Bulgarian court applies the substantive foreign law. However, if the prescribed foreign law provides for the application of the principle of lex rei sitae, the Bulgarian court applies Bulgarian law.

• Married couples, regardless of the nationality of the spouses, are deemed to own all assets acquired during the marriage jointly, regardless of whose name appears on the deeds/bank accounts. Such joint possession is valid so long as the marriage exists.

• If there are no successors determined by the applicable law, any property situated in Bulgaria is inherited by the Bulgarian state or municipality.

Bulgarian courts are competent to resolve inheritance cases if:
• The deceased at the time of death, had his/her usual residence in Bulgaria, or was a Bulgarian citizen.

• All cases where part of the deceased’s estate is situated in Bulgaria, regardless of his/her residence or citizenship.

Inheritance claims should be filed with the court in the region where the deceased had his/her last usual residence. If a foreign court makes a decision subject to execution in Bulgaria, then that decision is admitted for execution by the competent Bulgarian court, the Sofia City Court.
An average inheritance case usually takes between 2 and 3 years.

Bulgarian inheritance law includes the principle of “forced heirship”.

A reserved portion is applicable to every inherited property and to every person subject to the inheritance law, including inheritance by will. Pursuant to the principle of the reserved portion, the deceased cannot dispose of, by will or gift, the respective part of the inherited property reserved by law to the descendants (children and grandchildren), and to the parents and spouse. There is no legal way for a foreigner to avoid the “forced heirship” rules imposed by Bulgarian law e.g. by registering the ownership of property situated in Bulgaria with an offshore company.
Any part of an estate outside the reserved portion may be freely disposed of by will or gift.
The Inheritance Act defines the exact proportions of the reserved portion depending on the capacities and numbers of the heirs, as follows:
• If the deceased is not married, the reserved portion of the descendants (including adopted children) is as follows: one descendant – 1/2;
two or more descendants – 2/3;


• The reserved portion of the parent(s) is 1/3;


• The reserved portion of a surviving spouse, where inheriting without parents is 1/2, and 1/3, where inheriting along with the parents;


• A surviving spouse (considered already to own 50% of the estate) is entitled to a portion of the estate of the deceased in equal proportion to that of any surviving children;
the disposable part of the property is formed as follows: with spouse and one child – 1/3;
with spouse and two children – 1/4;
with spouse and three or more children – 1/6.

In case of intestate succession (i.e. where no will) the estate is dealt with under the provisions of inheritance by law as follows:
• If the deceased left only descendants, they inherit the estate in equal proportion;


• In the absence of descendants and spouse, the parent(s) inherit the estate in equal proportion;


• If the deceased left only ascendants (i.e. grandparents, great-grandparents, etc.) the first in range inherit equally;


• If the deceased left only siblings, they inherit in equal proportion;


• If the deceased left only siblings and ascendants, the siblings inherit 2/3 and the ascendants 1/3;


• If none of the above are left, the collateral relatives inherit;


• The surviving spouse inherits the entire property if he/she is the only heir, or inherits along with every of the above, as follows: equally with the descendants;
where inheriting along with parents or with siblings or their descendants - 1/2 if married to the deceased at least 10 years, or 2/3 if married to the deceased more than 10 years;
;
where inheriting along with parents and with siblings or their descendants - 1/3 if married to the deceased at least 10 years, or 1/2 if married to the deceased more than 10 years.

Bulgarian Inheritance Law provides for some additional rights of certain groups of heirs, i.e. those who have lived with and taken care for the deceased, or who have contributed to the increase of the inherited property.

A will can be used to include non-heirs or to increase the portions of particular heirs.

Any person of sound mind who is 18 years of age or older can make a will and appoint in advance the heirs to the disposable portion of his/her estate after death. The residue of the estate, i.e., that portion outside the reserved portion, can be freely willed.
A Notary Certified Will is made personally in the presence of a Notary Public. Two witnesses are required to authenticate the will, neither of whom may be a beneficiary.
Recent amendments to the Constitution of the Republic of Bulgaria (2005) and to the Ownership Act (2007) with respect to the accession of Bulgaria to the European Union permit foreigners to acquire title to land in Bulgaria through ex lege (by virtue of law) inheritance;
however no case law has been established yet. For most cases (different from ex lege inheritance) it may be more favorable for foreigners who own land in Bulgaria not to make a will.

The owner may freely dispose of property prior to his death, except the reserved portion.

Heirs with a reserved portion may challenge in court any donations or gifts made during the lifetime of the deceased or challenge a will which leads to a decrease in their reserved portion. Challenges must be made within 5 years of the death of the deceased. There is no legal way to avoid such challenges if the reserved portion has been affected.

Property rights must be legally transferred.

Under Bulgarian law the transfer of property rights, as well as the establishment of limited rights in rem in respect of real estate is done by way of a formal agreement (generally referred to as a “Notary Deed”), which is executed by the parties and a duly qualified Notary Public authorized to act within the region of location of the property. Real estate transactions involving the state or a municipality on the side of the grantor, however, are effected by simple written agreements, i.e., the participation of a Notary Public is not required.
Title to real estate may also be transferred through a judge ruling as part of the enforcement procedure against a debtor's property. Such a ruling is a result of a foreclosure sale against a defaulting debtor. In such cases, following the public sale of property, the foreclosure judge conducting the procedure issues rulings transferring title to the publicly sold real estate.
Regardless of the way they are documented (i.e., Notary Deed, simple written agreement, ruling), transfers of ownership or limited rights in respect of real property are subject to registration with the relevant Real Estate Registry. Title to property is evidenced and takes effect in respect of third parties on the grounds of such registration. The legal owner of the property is considered to be the person registered in the Real Estate Registry.

Bulgarian law recognizes the concept of community property.

Most property acquired during a marriage is equally owned by each spouse. Bulgarian law does not recognize pre-nuptial agreements and does not allow the property ownership of a spouse to remain separate after the marriage, except for gifts and inheritance.
The institution of the community property falls in the sphere of the family relations and therefore is regulated by the law of the state of the spouses nationality. If the spouses are of different nationalities the applicable law is the law of the state of their usual residence. However, the spouses may choose another law to be applied to their community property. If the chosen law is Bulgarian, and one spouse acquires property in Bulgaria during the marriage, then both spouses become joint owners of this property.

Minors who inherit property require the appointment of a guardian.

Anyone who inherits by virtue of the law may become the owner of property. Property may be inherited by a child or children not of legal age or others not legally adult.
Pursuant to Bulgarian law under-age children (up to 14 years), as well as minors (between 14 and 18 years) encounter no restrictions on inheriting any kind of property. However, Bulgarian law requires a guardianship to be established with respect to the management of the property of an under age child or a minor with no parents. Guardians are appointed by the mayor of the municipality of the child's domicile.

Inheritors may choose to accept or to deny acquisition of inherited property.

Both the acceptance and the denial are subject to a court procedure and to registration in a specific book. Any factual or legal action performed by an inheritor, which undoubtedly shows on his intention to accept the inherited property, shall be considered as acceptance of the inherited property.

Every inherited property in Bulgaria is subject to inheritance taxation.

Within 6 months of the death of the deceased or the acknowledgement of his/her death, a tax declaration should be submitted to the municipality of the deceased’s last domicile, or, if the last domicile was abroad, to the municipality where most of the inherited property in Bulgaria is located. The surviving spouse, as well as the descendent's (i.e. children, grandchildren, etc.) are not subject to Inheritance Tax.

Disclaimer
The contents of this article shall not be considered to be a legal opinion or legal advice, legal advice should be obtained.
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PostSubject: Re: INHERITANCE LAW   Sat Oct 23, 2010 9:26 pm

this is such a grey area and has been discussed many times and will be discussed many more times. its the reserved portion that is of most interest to me and as i understand it, no will can override it, until someone can tell me otherwise, bulgarian law applies to the reserved portion.
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PostSubject: Re: INHERITANCE LAW   Thu Jun 04, 2015 8:03 am

Do not hesitate to make a will in Bulgaria; the Bulgarian legislation gives each owner a chance to protect his or her property.

When someone we love dies we face one of the most difficult times in our lives.
Mortality is a difficult subject for any of us to discuss or even think about, but it is inevitable that we will all leave this earth one day.

By planning a head and getting our financial affairs in order we are protecting those that we love, making their lives less stressful at such a difficult and emotional time.

Dying without making a will can result in unnecessary problems for those that we wish to leave our possessions and money to and making a will allows for smoother succession.

Inheritance law in Bulgaria does not follow the model used by countries such as the United Kingdom, or the United States, which have inheritance laws based on English law. Bulgarian inheritance law is based on the legal system used in much of continental Europe, which is known as the Napoleonic Code.

In Britain anyone making a will is free to dispose of their assets as they wish. But in Bulgaria there are strict inheritance rules which dictate how estates are split on death. If your will contradicts these, then this civil code takes precedence.
You are totally wrong if you think that everything will automatically go to your spouse / civil partner and children. This is not always the case. If you die without making a Will, in some cases your money and possessions can be divided up by the Government according to their law.

The law states that the assets should be divided between the left/surviving heirs but, the main issue is to determine and to prove who are the ONLY legal heirs.

If you have been married / entered into a Civil Partnership or Divorced since you last made your Will, it may not be legally binding and you will need to obligatory consider making a new Will.

Civil partnership is not recognised legal status in BG. The BG Will however is binding but if it harms the legal rights of the heirs as per the BG Law the heirs have the right to dispute it and to ask to share the share with which their right was harmed.

If you live with someone but are not married or in a civil partnership with them, please be aware of the fact that this person will not be entitled to anything (unless a property is owned equally as Joint Tenants), unless stated so within your Will.

Your UK will can contain how your bank accounts, movables, intellectual property etc. can be disposed after your death. However, a general legal principle provides that any rights and obligations concerning a real estate property are regulated by the jurisdiction, where the property is located. Following this principle, you can see the specific regulation in the Bulgarian International Private Code:

Article 89 (2) Succession to immovable property shall be governed by the law of the State in which the said property is situated

However this could be interpreted also for the probate process (death without will).

Therefore the Code also provides explicit regulation, so that wills are valid, namely:

Article 90. (1) The capacity of a person to dispose of the property thereof by means of a will (making and revocation) shall be governed by the law applicable according to Article 89 herein.
As you can see, Article 90 refers the will regulation to Article 89 and we can clearly see that if you want to include your Bulgarian real estate property in a will, the latter should be made in Bulgaria, according to the statutes of the Bulgarian law.

This is also covered under The International Private Law in the European Community legislation which states that:
• Inheritance of movable assets is regulated by the law of the country where the usual residence of the person was at the moment of his/her death.
• Inheritance of real estate's is regulated by the law of the country where those real estate's are located.

It means that for real estates, there should be a will or wills prepared according to the legislation of the country where the exact real estate is located.

As already stated, the Bulgarian inheritance system is very different from the English system. We would rather advise you to make a separate Bulgarian Will. This will facilitate the winding up of any Bulgarian estate. In case that you have made an English will, which refers to Bulgarian estates, please make sure that this part of the will statements are in accordance with Bulgarian legislative requirements, so that the will statements will be valid and legally binding.

A will not made in Bulgaria can become useless if it does not meet the requirements of the Bulgarian legislation.

A Bulgarian Will is personal and a confidential act. There can not be a mutual will, even one to be signed by spouses in relation to commonly owned property in Bulgaria. This means that every spouse should manage whom to gift with their 50% ownership.

Bulgarian inheritance law ensures that a portion of the disposable part of an estate is reserved for surviving family members, including children, if any, and the surviving spouse if the deceased is married and the spouse is still living. A surviving spouse owns 50 percent of the estate under Bulgarian law, and you cannot dispose of this in a will. The remaining 50 percent of the estate is known as the disposable part of the will, and part of this is reserved for surviving children and the surviving spouse. One-third of the disposable part of the estate is reserved for a surviving spouse and one child, and they share this part equally. If there is no surviving spouse, but there are surviving children, a single surviving child is entitled to half of the estate. If there are two or more surviving children, the children get equal shares of two-thirds of the estate.
Property may be inherited by a child or children not of legal age. Under-age children (up to 14 years), as well as minors (between 14 and 18 years) encounter no restrictions on inheriting any kind of property. However, Bulgarian law requires a guardianship to be established with respect to the management of the property of an underage child or a minor with no parents.
If a person dies without leaving a will, any descendants of that person will share equally in the entire estate. If there are no surviving descendants and no surviving spouse, but there is a surviving parent or parents, those parents receive the entire estate. If there are no surviving children, spouse or parents, but there are surviving siblings, the siblings receive equal shares of the estate. If there are no successors to inherit the estate, the estate becomes the property of the Bulgarian state.

However, when there is no will the property left by the deceased is regulated according to the Bulgarian legislation. The inheritors can prove their rights over the left assets on the ground of relative connection. In Bulgaria there is a document known as the certificate for heirs, issued to the inheritors which cannot be issued to a foreigner, which means that it cannot be determined ALL the persons that have the right to receive the assets of the deceased.

A document that conclusively states who are ALL heirs of a legator.

That document is binding official grounds for the notary public to accept it as a proof of succession and transfer the property as per the requirements of the heirs stated in it.
Such a document does not exist in the UK and many other countries and therefore this document can not be issued by any embassy, government or legal body.

The inheritor’s document is a key requirement and grounds on which the estate is administered, as per the Bulgarian Laws. Without that document, the heirs CANNOT sell/transfer/donate the property or transfer/assume/buy the company shares, even though the Law states they are automatically transferred upon death to the successors.
The problem lies not within the generic connection between the heir and legator but within proving conclusively and officially who the heirs of the legator are.

A very simple example would be if the husband dies, leaving a living wife and they possessed an apartment together, she by the Bulgarian law (particulars may vary) inherits her late husband's share. She may use it, live in it rent it out etc however, if she decides to sell/transfer/donate it, then she would need to prove NOT as much so that she is a heir, but that she is the ONLY rightful heir.

Another example, the wife dies, leaving living children and husband, the husband and she owned equally together a company, solely created to buy the house they live in, in Bulgaria.
Bulgarian law states that the company shares are inherited but it does not mean that the shareholders in the company are obliged to accept the heirs at the company. In case that they are not accepted, the heirs have the right to receive the respective share from the inheritance – company share, assets and etc.

However the Company Register will require seeing on what grounds the husband and the children inherit and are there any other rightful successors that may have not been notified for the legacy. You would need to provide the Company register with an official, authority issued document that the husband and the children are the ONLY heirs.
This is not a simple process and can not only be costly and stressful, for our loved ones but an extremely lengthy process.
Our qualified lawyers have vast legal knowledge and experience in this field and will guide and assist you in preparing the exact format and specific wording for your will. They will be with you, your relatives and friends every step of the way. This type of will can be changed and corrected several times, as the valid one will be considered the most recent dated.

It is also important to note that inheritance tax forms must be submitted and your successors have 6 months in which to do this before fines are incurred.
Awaiting the relevant paper work, translations and apostle stamps may take time if having to be completed across borders.

Bulgarian citizens and foreign individuals inheriting Bulgarian property are subject to inheritance tax.

Inheritance tax is paid by the heirs (whether they inherit by law or by will). The surviving spouse and relatives in the direct line are not liable to pay inheritance tax on their own inheritance.

Each heir must submit a declaration to the municipality in which the testator had their last residence. If they had no residence in Bulgaria then the declaration is submitted to the municipality of the area where most of the property comprising the inheritance is.
The deceased’s estate is valued in the local currency (BGN)at the date of death.

The debts of the deceased, as evidenced to the tax authorities, and certain funeral expenses up to BGN1,000 (€500) are deductible.

The tax is payable by the heirs in respect to their own inheritance. The first BGN250,000 (€125,000) is exempt from taxation.

The rates vary between 0.4% and 0.8% on inheritances received by relatives in the lateral line (brothers, sisters, and their descendants).
The rates vary between 3.3% and 6.6% for all other beneficiaries.
In the preparation of these web pages, every effort has been made to offer the most current, correct and clearly expressed information possible. Nonetheless, inadvertent errors can occur, and applicable laws, rules, and regulations often change.

Expatassistbulgaria, presents the information on this web site as a service to our clients and other Internet users. While the information on this site is about legal issues, it is not legal advice. Moreover, due to the rapidly changing nature of the law and our reliance on information provided by outside sources, we make no representation, warranty or guarantee concerning the accuracy or reliability of the content at this site or other sites to which we link.

Further, the information contained herein is intended to afford general guidelines on matters of interest. The application and impact of the laws can vary widely due to individual’s circumstances, from case to case, based upon the specific or unique facts involved. Accordingly, the information in this site is not intended to serve as legal, accounting or tax advice.

None of the information provided in this article should be construed as legal advice. Our professional advice should, therefore, be sought before action based on any information is taken.
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PostSubject: Re: INHERITANCE LAW   Fri Mar 31, 2017 8:51 am

Just got this from my lawyer looks like it could be useful to some.


Inheritance Legislation of Bulgaria for Foreigners:
Rules and Main Problems


1st general rule:
Inheritance of a real estate in Bulgaria is governed by the Inheritance Law of Bulgaria (with the exception of the rules of EU 650/2012).
That is why the documents provided by the heirs should meet the requirements of the Bulgarian legislation. For movable assets such as vehicles, bank accounts and other, unless otherwise legally specified, the Bulgarian law also applies.

Problem:
The Bulgarian legislation requires the heirs of the deceased foreigner to provide a Certificate of heirs of the deceased. This Certificate must correspond to the requirements of Bulgarian Inheritance law.
The problem is that not all countries have such certificate (Anglo-Saxon countries) and the heirs must confirm their status with other documents that usually require a lot of efforts, time and expenses.

2nd general rule:
According to the Bulgarian legislation the lawful heirs in the first row are all the children in the line of descend. The spouse also inherits an equal part to that of each child.

Problem:
It means that the spouse and all children have to provide documents confirming their status - marriage and birth certificates and special notarised declarations, as documents issued outside Bulgaria should also be translated and legalised for Bulgaria.
The situation becomes more complicated in case the deceased has no legal heirs of the first category, because in this case the heirs of the second category not only have to confirm their status, but also to provide documents about luck of the heirs of first category and in some cases and for some countries such documents simply can not be obtained.

Problem:
Division of the inheritance can be made only after all the heirs provide their documents, i.e. the spouse cannot require his or her part of the inheritance until all the children of the deceased provide their documents which may cause a delay if the spouse and children live in different countries.

Problem:
We see many times that people who come to us do not want their property to be divided according to the Bulgarian legislation, in the event of their death.

3rd general rule:
The heirs can administer the inherited assets only after they are transferred to all heirs - all children and living spouse.
Simple example: a married couple owns an apartment in Bulgaria. The wife dies and the husband wants to sell the apartment.
He will not be able to do so until he and all children of his wife are registered as owners of her owned share of the apartment (the legal grounds for that being the Bulgarian law that provides in case when a property is owned by a married person, the spouse owns half of it notwithstanding whether the name was in the deeds.

Problem:
The cause of delay in case the heirs plan to sell the real estate and potential problems with the buyers due to that.

4th rule:
A foreign will /i.e. a will made according to the rules of another country/ can be accepted in Bulgaria if it meets the requirements of the Bulgarian legislation.

Problem:
A non-Bulgarian will cannot guarantee that the Bulgarian assets and property of the deceased will be administrated according to this will.


Those are the general rules and problems that come out during our work. However each inheritance case is unique and it has its own specifics.

Most of the problems listed above can be solved by making a Bulgarian will that ensures to:
- Meet the requirements of the Bulgarian legislation;
- Specify the inheritor's instructions about the division of the Bulgarian assets between the heirs;
- Relieve the heirs from expenses and time to obtain additional documents.


There are two types of wills in Bulgaria:

Type 1:
The notarial will is prepared and typed before a Notary Public in the presence of two witnesses. The testator announces his verbal testament and the Notary writes it down. The Notary reads the will and the testator, the witnesses and the Notary Public sign the deed. The notary fees are percentage on the value of the property.

Type 2:
This will is entirely handwritten with a date and signature of the testator and there is a specific legal form that needs to be followed if you want the will to be valid. The hand written wills can be changed or corrected several times, as the valid one will be the one with most recent date.
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varnagirl
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PostSubject: Re: INHERITANCE LAW   Fri Mar 31, 2017 2:15 pm

yes....so did another user on another forum...
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Andy
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PostSubject: Re: INHERITANCE LAW   Fri Mar 31, 2017 4:14 pm

Good to know I'm not the only one then
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PostSubject: subject   Fri Mar 31, 2017 6:08 pm

A very informative post and I thank you for taking the time to enlighten us all.

I view it all as a minefield which seems to have many traps for the unwary...much homework needs to attended to!

Don't leave it until the last moment...get it sorted and understood sooner, rather than later.
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PostSubject: Re: INHERITANCE LAW   Fri Mar 31, 2017 8:15 pm

Phew!! a minefield I thought everything would go to spouse then onto chldren. Will have to have a look into this at some stage. T Andy for the post g

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PostSubject: Re: INHERITANCE LAW   Sat Apr 01, 2017 8:22 am

Thank you for the update mate
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PostSubject: Re: INHERITANCE LAW   Sat Apr 01, 2017 8:52 am

3rd general rule:
The heirs can administer the inherited assets only after they are transferred to all heirs - all children and living spouse.
Simple example: a married couple owns an apartment in Bulgaria. The wife dies and the husband wants to sell the apartment.
He will not be able to do so until he and all children of his wife are registered as owners of her owned share of the apartment (the legal grounds for that being the Bulgarian law that provides in case when a property is owned by a married person, the spouse owns half of it notwithstanding whether the name was in the deeds.

Question:-  What happens if you are a limited company

4th rule:
A foreign will /i.e. a will made according to the rules of another country/ can be accepted in Bulgaria if it meets the requirements of the Bulgarian legislation.

Problem:
A non-Bulgarian will cannot guarantee that the Bulgarian assets and property of the deceased will be administrated according to this will.

Excellent information and obviously very important especially when you get to my age  T
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BGIan
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PostSubject: Re: INHERITANCE LAW   Sat Apr 01, 2017 8:35 pm

Very confusing, seems ive got some reading to do
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PostSubject: Re: INHERITANCE LAW   Sun Apr 09, 2017 10:31 pm

BGIan wrote:
Very confusing, seems ive got some reading to do

Me too I can't quite get my head around all this
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PostSubject: Re: INHERITANCE LAW   Wed Apr 12, 2017 2:43 pm

T
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