Monaco offers some of the most liberating laws globally for will drafting, but as Defence Lawyer Géraldine Gazo explains, there are significant considerations that international residents must be aware of. 

Géraldine Gazo has practiced law for 25 years as an Avocat-Défenseur at the Monaco Bar, and is a Partner at CMS Monaco law firm, where she co-heads the Private Clients practice. She was instrumental in the drafting of the Monaco Private International Law Code in 2017, which had a profound impact on succession laws in Monaco, among other areas. The bill modernised Monaco’s Private International Law framework, making it more compatible with international standards and practices, providing clarity in matters of international succession and ensuring that Monaco remains an attractive jurisdiction for international residents and investors.

“The most interesting aspect of Private International Law for Monaco residents is the fact that a person can choose the law of the country of their nationality to govern the succession of their estate, rather than rely on the succession laws of Monaco,” says Géraldine Gazo. “This can have profound benefits for international residents living in Monaco. They can choose Monaco law or they can take the law of one of their nationalities depending on which law best suits their interests and those of their successors. But this choice must be expressly stated in a will.”

Different types of wills

Before discussing the intricacies of wills, it is important to outline exactly which types of documents are legally accepted in Monaco. 

Firstly, a Holographic Will (Testament Olographe) is entirely handwritten, dated, and signed by the testator. It does not require witnesses or notarisation, but it must clearly express the testator’s wishes.

A Notarial Will (Testament Authentique) is drawn up by a notary in the presence of two witnesses or another notary. This type of will is considered very secure and less prone to challenges because it is officially recorded and the notary ensures that the legal requirements are met.

A Mystic Will (Testament Mystique) is written by the testator, either by hand or typed, and then sealed in an envelope. The sealed will is handed to a notary in the presence of two witnesses. The notary then drafts a statement that the will has been presented in this manner. The contents remain secret until the will is opened after the testator’s death.

“The most popular is Holographic Will, but the safest is the Notarial Will,” explains Ms Gazo. 

New to Monaco? Make a will

“One of the first things I recommend to people who have just moved to Monaco, or are planning on moving to the Principality, is to choose the inheritance law that they want to be applied in their will,” stresses Ms Gazo. “Many of our clients think that because they drafted a will in their previous home country that everything is in order and they don’t need to think about it when they move to Monaco. But if they live and die while domicilied in Monaco, the inheritance law that applies will be the Monaco law, unless they organise it differently.”

Forced heirship laws in Monaco

A crucial facet of Monaco’s inheritance law is forced heirship, which applies primarily to descendants, such as children, and in some cases to ascendants. Forced heirship inheritance laws also apply in other civil law countries like France, Germany, Italy, Spain, Greece, Brazil and Portugal.

Under Monaco’s forced heirship regulations, a portion of the deceased’s estate, known as the ‘reserved share’ or réserve héréditaire, must be allocated to certain heirs regardless of the will’s contents. If the deceased has children, half of the estate is reserved for one child, two-thirds of the estate is reserved if there are two children, and three-quarters of the estate is reserved if there are three or more children.

If the deceased has no descendants but has surviving parents or grandparents, one-quarter of the estate is reserved for the parents.

Remarkably, the surviving spouse is not included in the forced heirship provisions, a fact, says Ms Gazo, that draws gasps of astonishment from many spouses when she gives talks on the subject. 

“Instead, the spouse may have other rights and entitlements over part of the estate under Monegasque law, depending on the specific circumstances and any prenuptial agreements or wills in place,” she explains.

Which countries allow for more freedom in their wills? 

Countries that don’t provide forced heirship in their inheritance laws typically follow systems based on testamentary freedom and intestate succession. In these jurisdictions, like the United States, the United Kingdom, Australia, Canada, and New Zealand, individuals generally have more freedom in distributing their assets according to their preferences, with fewer restrictions on how they do so.

Challenging a will

Even if an individual chooses inheritance law in their will, a beneficiary under forced heirship still has the possibility to challenge the distribution of assets.

“Take the example of a French person who lives in Monaco and wants to apply Monaco inheritance law and leave everything to his children, and nothing to his wife,” says Ms Gazo. “The wife can challenge the will, arguing that because her deceased husband was a French national, and under French law the wife has reserved rights, she is entitled to a share of his assets. This is one problem with article 63.2 of the code.”

The only way to get around this, says Ms Gazo, is to drop a nationality. 

“This is why we encourage people to take advice before drafting a will,” she says. “Sometimes, we need to mastermind the situation, which can be quite difficult when people have three or four different nationalities. We have to check them all to see what the rights of forced heirship would be and then organise the will in a way so the client can distribute the assets exactly as they want, for a smooth transmission. It’s like making all the parts of a puzzle fit.”

Appointing a Testamentary Executor

Appointing a testamentary executor is crucial, especially for individuals with international assets, says Géraldine Gazo. A trusted executor can navigate legal complexities, manage assets across borders, and prevent family conflicts by making impartial decisions. They also ensure compliance with legal obligations, providing peace of mind and efficient estate administration.

If no executor is appointed, a notary in Monaco typically handles the process, with the courts providing necessary documentation. However, they do not manage affairs in other countries.

Everlasting Power of Attorney

An everlasting power of attorney is a document separate from a will, which allows an individual to designate someone to manage their assets and make decisions on their behalf in case they become mentally or physically incapacitated, either temporarily or indefinitely. This became especially popular during the Covid-19 pandemic. The designated person can handle tasks such as paying for university, managing bank accounts, and organising health care.

“In Monaco, if you become incapacitated without an appointed power of attorney, a special judge appoints a ‘tutor’ to manage your assets,” explains Ms Gazo. “It is therefore crucial to appoint an everlasting power of attorney, someone who understands you, your culture, and your financial habits.” 

For everyday life, appointing a spouse or child is usually sufficient. However, for complex situations, such as running a large business, appointing a spouse who also has to care for you might not be practical, says Ms Gazo. In such cases, people often choose a professional or a business associate.

She adds that the structure of an everlasting power of attorney can also be tailored to an individual’s needs, with one person appointed to manage assets in another country, one person to manage an individual’s health care, and a professional to manage business affairs in Monaco.

Mirror Wills

A will drafted by an individual in Monaco is binding on assets in multiple countries. However, it is recommended that individuals create mirror wills, which are duplicates of the Monaco will, and deposit them in all the countries where they hold assets. “This ensures the will is recognised and enforced in each jurisdiction” explains Ms Gazo.

Inheritance Tax

It’s crucial to analyse the tax implications of inheritance, considering where the assets are located and who the beneficiaries will be. For a detailed discussion on this topic, refer to our article Tax Obligations in Monaco: What Every Resident Needs to Know.

The emotional side of drafting a will

Writing a will can be tough because it means facing your own mortality, which brings up fear, anxiety, and sadness. Family relationships can complicate things too, as deciding who gets what can reveal or create tensions and feelings of responsibility or resentment. 

In the end, drafting a will is a deeply personal and emotional task because it involves planning for the end of your life and thinking about the impact on future generations.

However, as Géraldine Gazo points out, “if you’re residing in Monaco without a will, your assets will be distributed according to the country’s laws, and this may not match your wishes. Therefore, estate planning becomes essential for international residents”.

See also: 

Hiring household staff in Monaco: expert insights from Sophie Marquet

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