Who To Trust Administration Of Inheritance

Managing Partner Galina Pavlova told Legal Insight about who to and how to trust the management of inheritance in Russia. 

If 100% or a significant share in a business company, all or a significant number of shares are included in the estate, while the ancestor was not only the owner, but also a sole management body of the company, the administration of inheritance issue becomes a matter of preserving the business. Who will administer the estate and how? What are the regulations for appointing an administrator?

According to Art. 1171 of the Civil Code of the Russian Federation, the measures aimed at protection of inheritance and its administration are to be taken by a notary. The notary does so upon a request of the heirs, the executor of will, the local government authority, the tutorship and guardianship authority or other persons acting for the benefit of preserving the estate. Paragraph 4.5 of the guidelines “On Inheritance of Shares in Authorized Capital of Limited Liability Companies” 1 specifies that
there can exist, for example, participants in a limited liability company a participatory share of which requires to be administrated.

Can employees be included in the number of interested parties, if there was a sole participant - the notary decides. However, actions of the company’s employees interested in preserving and developing the business, who applied to a notary with a statement on appointment of an administrator, can be justified, especially when 100% or a significant part of the business is inherited. As for the powers of the person who applied on behalf of the business company (Deputy, Acting Head) - they are regulated by its Charter and other internal documents.

Read more:
Who To Trust Administration Of Inheritance.pdf

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Ирина Кошечкина