Renouncing an Inheritance: What Vietnam’s 2015 Civil Code Requires

23-07-26 MTParners

Article 620 of the 2015 Civil Code removed the six-month deadline that previously applied, allowing an heir to renounce an inheritance at any time before the estate is distributed — though the right is not unconditional.

Not everyone wants to inherit. An estate may come bundled with debts or drag the heir into a protracted dispute with co-heirs. Article 620 of Vietnam’s 2015 Civil Code sets out the right to renounce an inheritance, with a notable change from the previous law: the six-month deadline has been abolished, and an heir may now renounce at any point before the estate is divided. This right, however, is not absolute. A renunciation made through the wrong procedure, or intended to evade a financial obligation, can be declared invalid and trigger prolonged disputes.

Who may renounce, and when is the right restricted?

Under Clause 1, Article 620 of the 2015 Civil Code, an heir has the right to renounce an inheritance, except where the renunciation is intended to evade the heir’s own financial obligations toward another person. The rule applies equally to testate and intestate succession, regardless of whether the heir belongs to the first, second, or third order of succession.

In other words, the right to renounce is a civil right protected by law, rooted in the principle of voluntariness in inheritance relations — no one can be compelled to accept property, or the debts attached to it, that they do not want. At the same time, the law sets a boundary to protect third parties, preventing renunciation from being used to dissipate assets or dodge repayment of debts.

Abolishing the six-month deadline: The biggest change from the 2005 Civil Code

The 2005 Civil Code (Article 642) set a six-month deadline for renouncing an inheritance, counted from the date succession opened; if the heir did not renounce within that period, they were deemed to have accepted the inheritance. This rule caused considerable difficulty in practice, since heirs often did not know the exact date succession opened, or lived far away and could not complete the procedure in time.

Clause 3, Article 620 of the 2015 Civil Code abolished the rigid six-month cut-off in favor of a more flexible rule: a renunciation must be made before the estate is distributed. As long as the estate has not yet been divided, an heir retains the right to file a written renunciation, even many years after the deceased passed away. Conversely, once the estate has been fully distributed and the heir has received their share, the right to renounce ends.

Procedure: Written form, who must be notified, and is notarization required?

Under Clause 2, Article 620, a renunciation must be made in writing and sent to the estate administrator, the other heirs, and the person assigned to distribute the estate, so that they are informed. The document should state the renouncing heir’s full name, their relationship to the deceased, the share of the estate being renounced, and a declaration that the renunciation is not intended to evade a financial obligation.

Current law does not require the renunciation document to be notarized or authenticated. In practice, however, to secure its legal value and avoid being challenged later by other heirs, the renouncing heir should have the document notarized or authenticated at a notary office or the commune-level People’s Committee, together with documents proving the inheritance relationship and the deceased’s death certificate.

Renouncing to dodge debt: The risk of invalidation

A key point to note is the exception in Clause 1, Article 620: if a renunciation is made to evade a financial obligation toward another person — for example, an heir with outstanding debt deliberately renounces their share so the property cannot be seized or offset against the debt — the renunciation has no legal effect. The creditor, or any party with a legitimate interest, may petition the court to declare the renunciation invalid and compel the heir to accept their share in order to satisfy the obligation.

Separately, if every person entitled to inherit renounces the estate, the property is handled under Article 622 of the 2015 Civil Code: after the deceased’s financial obligations have been settled, any remaining estate with no heir to receive it passes to the State.

Practical implications

Removing the six-month deadline gives heirs more room to decide whether to accept or renounce an inheritance, which is especially useful when the deceased’s financial obligations — debts, guarantees, disputes — are not yet clear. At the same time, the absence of a fixed deadline can leave estates undistributed for years, as some co-heirs delay their decision, to the detriment of heirs who wish to receive their share sooner.

Recommendations for individuals

If you intend to renounce an inheritance, prepare the written renunciation as early as possible and have it notarized or authenticated to secure its legal value and avoid later disputes with co-heirs.
Before renouncing, review your own financial obligations — debts, guarantees — carefully, to avoid the renunciation being treated as an attempt to evade an obligation and later invalidated by a court.
Where the estate is disputed or tied to an unclear debt, consult a lawyer to weigh the advantages and disadvantages of accepting versus renouncing before deciding.
Estate administrators and those assigned to distribute an estate should keep the written renunciation of each co-heir on file, as it will be required when carrying out the notarized declaration and distribution of the estate.
If a renunciation shows signs of coercion, deception, or was made by someone lacking civil act capacity, any interested party may petition the court to have the renunciation declared invalid.

MT & Partners Law Firm, with a team of experienced lawyers in inheritance and civil law, is ready to advise on and assist with drafting inheritance renunciation documents and estate declarations in full compliance with the law. Contact hotline 0987140772 or email info@mtpartners.vn for consultation.

(*) This article is for reference only and does not replace specific legal advice.

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