The article discusses the complexities surrounding gift contracts and the potential for them to be contested under Latvian law, particularly emphasizing the rights of legal heirs.
In Latvia, it is common for individuals to enter into gift contracts, with notary Ilze Metuzāle noting that there can be five to six such contracts each week. A recent example includes a mother gifting her daughter land for her to build a home with her family, while a father gifted his son a farm property with land for agricultural investment. These gifts, however, must consider the rights of reserved heirs as posited by the Civil Law.
Under the Civil Law, gifts can be contested, particularly if the reserved heirs feel their rights have been compromised. Metuzāle explains that when gifts are made, heirs may demand their mandatory share in monetary terms if they have received nothing from the estate while the benefactor was still alive. This legal challenge is nuanced and can become complex, especially in cases where multiple heirs exist, as in the example of a mother with two adult children, one of whom received the mother’s properties over time without any formal will.
The upcoming reform of inheritance laws that will take effect on January 1, 2025, will have significant implications on how gifts are structured and contested. Such reforms are aimed at clarifying the rights and responsibilities of all parties involved in gift-giving and inheritance, potentially impacting family dynamics and property rights in the future.
