Citizenship, Heirship, and Succession Planning

In a world where families, assets, and legal systems increasingly span continents, succession planning has evolved into a complex, cross-border undertaking. For high-net-worth individuals and their advisors, navigating divergent inheritance laws across multiple countries presents both logistical and legal challenges — not least of which are the constraints of forced heirship regimes. However, the strategic acquisition of dual or multiple citizenships is emerging as a powerful lever for wealth and legacy preservation. Beyond the mobility, business, and tax benefits typically associated with investment migration, an often-overlooked advantage is the potential to unlock greater testamentary freedom. Under the EU Succession Regulation,¹ strategic citizenship planning opens access to more flexible estate distribution structures, even in traditionally strict jurisdictions such as Austria, enabling individuals to shape their legacies on their own terms.

Forced heirship: A barrier to testamentary freedom

Forced heirship rules are statutory provisions in place in most EU member states that limit an individual’s ability to freely distribute their estate. Regardless of any terms stated in a will, these provisions dictate that certain relatives, typically spouses and children, receive a fixed share of the deceased’s estate. For instance, in Austria, children are usually entitled to at least one-third of the estate, while surviving spouses typically receive a minimum of one-sixth. While these rules protect family members, they can significantly constrain an individual’s testamentary intentions — particularly for global citizens with diverse asset portfolios.

A pathway through heirship constraints

An EU regulation is a binding legislative act that is directly applicable in all EU member states without the need for transposition into national law. The EU Succession Regulation was adopted to bring clarity to international successions, harmonizing rules on jurisdiction and applicable law across most EU member states (excluding Denmark and Ireland).

Under art. 20 of the EU Succession Regulation, the general rule provides that the law governing a individual’s succession is that of the country in which they were habitually resident at the time of death. However, art. 22(1) introduces a significant exception: individuals may, during their lifetime, choose the law of their country of citizenship to govern their succession. This presents a powerful tool for succession planning across borders. Furthermore, the applicable law is not limited to EU member states, meaning individuals are able to select non-EU jurisdictions as the governing law of their succession. It is also worth noting that the chosen law applies to the entire estate, regardless of the nature or location of the assets.

Citizenship planning as a strategic estate tool

Traditionally, estate planning has centered on wills, trusts, and tax optimization. However, for today’s global citizens, citizenship itself has become a pivotal factor in shaping succession strategies. For internationally mobile individuals and families with assets spread across jurisdictions, legal domicile is no longer the sole determinant of how wealth is transferred. Under the EU Succession Regulation, both an individual’s habitual place of residence and their nationality are decisive for succession planning.

Naturalizing in a non-EU country for lifestyle, mobility, tax advantages, or security reasons also enables EU citizens to opt out of applicable succession laws in EU jurisdictions, potentially circumventing restrictive forced heirship rules that might otherwise apply.

For example, consider a French–UK dual citizen residing in Austria who dies without a will. Austrian law — with its forced heirship regime — would apply by default. However, had they expressly chosen UK law in their will, Austria’s restrictive rules could have been sidestepped. Acquiring an additional citizenship can be a powerful legal tool that enables testators to choose jurisdictions aligned with their wishes and reclaim control over their estates.

A legal risk to keep in mind

Despite the EU Succession Regulation’s broad scope, art. 35 allows courts to override the chosen applicable law if it is deemed manifestly incompatible with the forum state’s public policy — the so-called ordre public clause.

Several European courts — including in Austria², Italy³, and France⁴— have upheld that opting out of forced heirship under art. 22 does not breach the ordre public clause. However, Germany’s Bundesgerichtshof has adopted a more conservative approach, ruling that the country’s forced heirship rules are constitutionally protected. In a notable case involving a German–UK dual citizen,⁵ the court rejected their choice to apply UK law and instead upheld the application of German forced heirship rules, despite the explicit preference stated by the individual.

This divergence underscores the importance of understanding the local interpretation of ordre public, especially for testators residing in jurisdictions with constitutional protections for heirs.

Navigating succession with citizenship

In a globalized world, assets move freely — but succession law remains anchored in jurisdictional boundaries. Citizenship, often seen as a symbol of identity or mobility, is fast becoming a strategic instrument in estate planning. The EU Succession Regulation offers the legal framework, but only proactive citizenship planning can unlock its full potential. For those seeking to preserve their wealth and control its future distribution, aligning legal instruments with global mobility is essential.

Notes

¹ Regulation (EU) 650/2012 on matters of succession and on the creation of a European Certificate of Succession

² Decision of Oberster Gerichtshof of 25 February 2021, 2 Ob 124/20i

³ Decision of Corte Suprema di Cassazione of 24 June 1996, Cass. Sez. II Civ., n. 5832

⁴ Decision of the Cour de Cassation of 27 September 2017, Cass Civ 1 n. 16-13151, Cass Civ 1 n. 16-17198)

⁵ Decision of Bundesgerichtshof of 29 July 2022, IV ZR 110/21