Inheritance of Land Use Rights in Vietnam: Legal Regulations & Optimal Solutions

Forms of Inheritance: Vietnamese law recognizes two primary forms of inheritance:

• Testamentary Inheritance (Inheritance by Will): The deceased leaves a legally valid will, which dictates the disposition of their assets (including land use rights) to designated heirs.
• Intestate Inheritance (Inheritance by Law): This applies when the deceased does not leave a will, the will is invalid, or in other circumstances outlined in Article 650 of the 2015 Civil Code. In such cases, the estate is distributed according to the legally prescribed order of heirs.

2. What Comprises the Estate in Land Use Rights Inheritance?

According to Article 612 of the 2015 Civil Code, an estate includes the deceased's private property and their share in any joint property. This estate can consist of real property (like land use rights, houses), movable property (money, vehicles), or intangible assets (property rights, shares). Among these, land use rights are typically the most valuable and a primary concern in inheritance cases

Land use rights are only considered part of an inheritable estate if the deceased held those rights lawfully under the Land Law.

3. Process and Principles for Dividing Inherited Land Use Rights

The division of land use rights in an inheritance adheres to the provisions of the 2015 Civil Code and the Land Law.

• In Case of a Will: If the deceased left a valid will, the land use rights will be divided strictly according to the intentions expressed in the will.

• In Case of No Will (or Invalid Will): Land use rights will be divided among heirs according to the order of succession stipulated in Article 651 of the 2015 Civil Code:

  • First Line of Heirs: Includes the spouse, biological parents, adoptive parents, biological children, and adopted children of the deceased.
  • Second Line of Heirs: Includes paternal grandparents, maternal grandparents, full siblings of the deceased; and biological grandchildren where the deceased is the grandparent.
  • Third Line of Heirs: Includes paternal great-grandparents, maternal great-grandparents of the deceased; biological uncles, aunts of the deceased; biological grandchildren where the deceased is the biological uncle or aunt; and biological great-grandchildren where the deceased is the great-grandparent.
  • Heirs within the same line are entitled to equal shares of the estate. Heirs in a subsequent line only inherit if there are no heirs in the preceding line due to death, disqualification, disinheritance, or renunciation of the inheritance.

• Note on Division: If the land use rights (the plot of land) cannot be divided equally in kind, the parties may agree for one person to receive the physical asset and compensate the others for the value difference, or agree to convert the value of the land use rights into monetary terms for division.

4. Inheritance of Land Use Rights by Minors (Under 18 Years of Age)

Individuals under 18 years of age have the full right to inherit by law. However, due to their lack of full civil act capacity, the management and use of their inherited land use rights will be carried out through a legal representative (parents or guardian)

The portion of land use rights divided to a minor will be registered in the minor's name, but its management will be undertaken by the legal representative. Any transactions involving these land use rights, such as transfer, lease, or mortgage, require the consent of the legal representative and, in certain specific cases, the approval of a competent state authority to ensure the minor's best interests.

5. Solutions to Prevent Disputes in Land Use Rights Inheritance

Disputes over the inheritance of land use rights are common, often stemming from the absence of a will, an unclear or contradictory will, or a lack of consensus among co-heirs. To minimize these risks, property owners should proactively take the following measures:

• Create a Clear and Lawful Will: The will should specifically name the heirs and the portion of the estate they are to receive. It is advisable to have the will in writing, witnessed, or ideally, notarized or certified to ensure maximum legal validity.

• Disclose Will Information (if deemed necessary): Appropriately sharing information about the will with family members can help prevent misunderstandings and surprises later.

• Consider Transferring Land Use Rights Before Death: In some situations, gifting or transferring land use rights to relatives while still of sound mind can be a solution to avoid future disputes, though this requires careful consideration.
• Complete Land Legal Dossiers: Ensure that land use rights have been duly certified in the owner's name with accurate information. This will facilitate the inheritance distribution process later.

6. Reference to Actual Case Studies

• Case in Nghe An (2020): A grandchild raised by paternal grandparents since childhood requested to inherit as a biological child when the grandfather died intestate. The court did not accept the claim due to a lack of legal basis establishing a formal adoptive relationship. (Related to Articles 653, 654 of the Civil Code concerning inheritance relationships between adopted children and adoptive parents, stepchildren and stepparents ).

• Case in Ho Chi Minh City (2021): Mr. N. passed away leaving over 500m² of land without a will. His children disputed as the youngest sibling, who was managing the land, did not want to divide it. The court divided the estate equally among the five children in the first line of heirs per Article 651 of the Civil Code.

• Case in Binh Duong (2022): A father left a will bequeathing all land use rights to his son. After his death, his daughters sued, claiming they were unlawfully "disinherited." The court determined the will was valid, and the father had the right to leave his entire estate to one person, thus dismissing the daughters' claim (unless they were heirs who could not be deprived of an inheritance share under Article 644 of the Civil Code ).

7. Conclusion

The inheritance of land use rights is a complex legal issue fraught with potential for disputes. A clear understanding of legal regulations, the creation of an unambiguous will, the completion of land records, and a clear awareness of the rights of each heir are crucial factors in protecting legal interests and maintaining family harmony. 

Tran Dan - Legal Expert

Former Judge - Senior Advisor DB Legal

The information contained in this article is general and intended only to provide information on legal regulations. DB Legal will not be responsible for any use or application of this information for any business purpose. For in-depth advice on specific cases, please contact us.

For more information: 

📞: +84 357 466 579

📧: contact@dblegal.vn

🌐Facebook:  DB Legal Vietnamese Fanpage or DB Legal English Fanpage 

🐦X(Twitter)

💼Linkedin

🎬Youtube

.