Definition
Testamentary Succession
Testamentary succession is the transfer of a deceased person's assets according to a valid will, as opposed to the default rules that apply when there is no will.
When a person dies leaving a valid will, their estate passes to the beneficiaries named in it, in the manner they specified — this is testamentary succession. It contrasts with intestate succession, where statutory personal laws decide who inherits because no will exists. Testamentary succession honours the deceased's expressed wishes.
Depending on the asset, location and personal law, the beneficiaries may need to obtain probate (court certification of the will) to establish their right, especially for immovable property in certain jurisdictions. A well-drafted will makes testamentary succession smoother and reduces the scope for disputes among heirs.
Related terms
- Will (Testament)A will is a legal document in which a person states how their assets should be distributed after death and who should carry out those wishes.
- Intestate SuccessionIntestate succession is the distribution of a deceased person's assets according to statutory law when they die without leaving a valid will.
- ProbateProbate is the legal process by which a court certifies that a will is valid and grants the executor authority to administer the estate accordingly.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.