Death and Inheritance: Procedures, Inheritance, and Taxation

In the event of a death in Luxembourg, the next of kin must complete several procedures within a short timeframe: registering the death, arranging the funeral, notifying the relevant authorities, opening the estate, and, in some cases, paying inheritance taxes.

For expatriates and international families, the situation can be more complex if the deceased held another nationality, owned assets in multiple countries, or had heirs living abroad.

This guide helps you understand the main steps to take following a death in Luxembourg, the order of heirs, inheritance taxes, and key considerations for international estates.

What should be done immediately after a death in Luxembourg?

When a loved one dies in Luxembourg, the first steps are to have the death certified, report it to the municipality, and arrange the funeral.

Reporting the Death to the Local Municipality

The death must be reported to the municipal office of the place where it occurred. This report can be filed by a family member, the funeral home, or any person able to provide the necessary documents.

The municipality then issues the death certificate and provides the necessary authorizations for burial or cremation.

Gathering the Initial Documents Following a Death

The documents to be prepared may include:

• the medical certificate confirming the death;
• the family register or civil status documents;
• an identification document for the deceased;
• the documents required for burial or cremation.

Arranging the Funeral

Relatives must also arrange the funeral with the chosen funeral home. The funeral home can often assist the family with certain immediate administrative procedures.

Administrative Procedures Following a Death

Once the death certificate has been obtained, several agencies must be notified. These steps allow for the freezing or settlement of certain accounts, the establishment of any rights for beneficiaries, and the preparation of the estate.

Organization	Why contact them?	Recommended timeframe
Banks	To report the death, freeze or secure accounts and safe deposit boxes.	As soon as possible after the death certificate is issued.
Health insurance	Check for any benefits, particularly regarding funeral expenses.	As soon as possible.
Pension Fund	Notify the fund of the death and verify the rights of the spouse or beneficiaries.	Promptly.
Employer	Finalize the employment relationship and notify the beneficiaries.	Promptly.
Insurance	Check for any death, life, or personal protection insurance policies.	As soon as the policies are identified.
Notary	Open or arrange for the settlement of the estate.	As soon as the estate situation warrants it.
Consulate or Embassy	Notify the country of origin if the deceased was a foreign national.	Depending on the deceased’s nationality.
SNCT	Regularize the status of a vehicle registered in the deceased’s name.	If a vehicle is involved.
Department of Registration, Real Estate, and VAT	File the declaration of succession or transfer of ownership due to death.	Within the legal deadlines.

Declaration of Inheritance: What Are the Requirements?

The estate declaration allows the Luxembourg authorities to determine the estate’s assets, identify the heirs, and calculate any taxes due.

When the death occurs in Luxembourg, the declaration must generally be filed within 6 months of the death. When the death occurs abroad, longer deadlines may apply.

The declaration may require, among other things:

• the death certificate;
• information about the heirs;
• documents relating to marriage or civil partnership;
• information about real estate;
• information regarding the deceased’s bank accounts, debts, and assets.

When the situation is complex—particularly when real estate is involved, or there are heirs living abroad or with multiple nationalities—it is strongly recommended to seek the assistance of a notary.

Who inherits in Luxembourg?

When a person dies, their estate encompasses all of their assets, rights, and debts. In the absence of a will, the law determines the order of heirs.

Children and Descendants

The deceased’s children, or their descendants by representation, are the primary heirs. In principle, they inherit equal shares.

In Luxembourg, children are heirs entitled to a reserved share. This means that a portion of the estate is reserved for them and that they cannot be completely excluded from the estate.

The Surviving Spouse

The surviving spouse enjoys special protection. Their rights vary depending on whether there are children and on the provisions made by the deceased.

If there are children, the spouse may have certain options, particularly regarding the usufruct of the family home and its furnishings, subject to applicable conditions.

Marriage, registered partnerships, and common-law marriages do not offer the same inheritance protections. To better understand these differences, consult our guide on types of unions and their tax implications in Luxembourg.

Parents, Brothers, and Sisters

In the absence of children and a surviving spouse, the estate may pass to the parents, siblings, or their descendants according to the applicable order of succession.

Other family members and the State

If there are no closer heirs, the estate may pass to other ascendants or collateral relatives. If there are no heirs at all, the state may inherit the estate.

Wills and Choice of Succession Law

For expatriates, the question of which law applies to the estate is crucial. A person may reside in Luxembourg, hold another nationality, have heirs in several countries, and own assets located abroad.

Within the European Union, the European Succession Regulation allows, under certain conditions, for the choice of the law applicable to one’s estate. In the absence of an expressed choice, the law of the deceased’s last habitual residence is generally applied.

It is possible to address this issue in advance through a will, particularly by choosing the law of one’s nationality when conditions permit.

This step is particularly important when:

• you live in Luxembourg but hold another nationality;
• you own real estate in several countries;
• your heirs live abroad;
• you are married, in a civil partnership, or in a common-law relationship;
• you have children from multiple relationships.

Marriage, Civil Partnership (PACS), or Common-Law Marriage: How Do They Affect Inheritance?

The type of relationship you choose can have significant consequences in the event of death.

Type of relationship	Partner Protection	Point to Note
Cohabitation	Limited protection.	A will or estate planning may be necessary.
Registered partnership	Intermediate protection.	Rights are not the same as those in a marriage.
Marriage	More extensive protection for the surviving spouse.	Rights also depend on whether there are children and on the matrimonial property regime.

The choice between cohabitation, registered partnership, and marriage should therefore not be considered solely from a tax perspective. It must also take into account the protection of the surviving partner, the children, the family home, and the estate.

What are the inheritance taxes in Luxembourg?

Inheritance taxes depend, in particular, on the family relationship between the deceased and the heir, the share inherited, and the nature of the assets involved.

Heir	General Overview	Key Point
Children and direct lineal relatives	The statutory share is generally exempt from tax.	The non-statutory share may be subject to tax.
Surviving Spouse	Exemption possible under certain conditions.	The situation varies, in particular, depending on whether there are children in common.
Registered partner	Specific treatment applies depending on the applicable conditions.	Coverage may be more limited than for a married spouse.
Siblings and collateral relatives	Higher estate taxes.	The rate varies depending on the degree of kinship and the share bequeathed.
Distant heirs or unrelated heirs	Higher tax burden.	Estate planning is strongly recommended.

Luxembourg provides a relatively favorable framework for direct line inheritances. However, inheritances among distant or unrelated heirs may be subject to higher taxes.

International Inheritance: A Key Consideration for Expatriates

International inheritances are common in Luxembourg. A resident may hold foreign citizenship, have children living in another country, own real estate outside Luxembourg, or maintain bank accounts in multiple countries.

In such cases, several issues must be considered:

• Which inheritance law applies?
• Which assets are located in Luxembourg?
• Which assets are located abroad?
• Which countries may levy inheritance taxes?
• Is there a treaty or mechanism to prevent double taxation?

Real estate located in another country may be subject to local tax rules. Similarly, a property located in Luxembourg may be subject to inheritance tax in Luxembourg even if the decedent did not reside in the country.

In cross-border situations, consulting a professional can be helpful in coordinating the applicable rules in the various countries involved.

Life Insurance, Banking, and Wealth Management

Certain life insurance policies can serve as a tool for wealth transfer. However, their treatment depends on the policy, the beneficiaries, tax residency, and the countries involved.

To better understand this type of solution, visit our page on Luxembourg life insurance.

It is also important to notify banks of the death and to review any accounts, safe deposit boxes, loans, or investments held by the deceased. See also our information on bank accounts in Luxembourg.

Estate planning is often addressed too late, even though a little advance planning can help avoid administrative, tax, or family-related difficulties.

Guides to consult based on your situation

• Understanding Taxation in Luxembourg
• Understanding the Tax Implications of Marriage, Civil Partnership (PACS), or Cohabitation
• Understanding Luxembourg life insurance
• Opening and managing a bank account in Luxembourg
• Getting married in Luxembourg
• Registering a civil partnership in Luxembourg
• Understanding the divorce or separation process
• Consulting a Lawyer for a Cross-Border Situation

Death and Inheritance in Luxembourg: What You Need to Know

In the event of a death in Luxembourg, family members must act quickly to report the death, notify the relevant authorities, and organize the estate. Administrative deadlines are important, particularly for filing the estate declaration.

For expatriates, estate planning must be approached from an international perspective: nationality, residence, the location of assets, family circumstances, and the rights of heirs can all affect the applicable rules. Anticipating these issues helps protect loved ones and facilitates the transfer of assets.

FAQ: Death, Inheritance, and Estate Settlement in Luxembourg