Succession agreement in Ukraine: how to conclude it and how it differs from a will

What a succession agreement is

Under a succession agreement one party (the acquirer) undertakes to carry out the instructions of the other party (the transferor) and, after the transferor's death, receives ownership of the transferor's property. The rule is set out in Article 1302 of the Civil Code of Ukraine.

The key difference from a will is this: a will is a one-sided instruction effective on death and can be revoked at any time. A succession agreement is two-sided: the acquirer takes on obligations now and receives the property after the transferor dies.

Who may be a party

The transferor may be a married couple, one of the spouses, or another individual. The acquirer may be an individual or a legal entity (Article 1303). In practice acquirers are usually relatives, neighbours or people who care for the transferor.

The law does not require a family link between the parties. This is what distinguishes a succession agreement from inheritance by law, where the order of succession depends on kinship.

What may be the subject

The subject may be immovable property such as an apartment, a house, land or a garage, and also movable property owned by the transferor. Where the property is jointly owned by spouses, the agreement is concluded with the consent of both (Article 1306).

The agreement may separately provide that after the death of one spouse the property passes to the other, and after the death of the second spouse it passes to the acquirer. This structure suits couples who want mutual protection and, at the same time, to pass the property to a third person.

Form and notarial certification

A succession agreement must be made in writing and certified by a notary (Article 1304). The notary checks the parties' legal capacity, the ownership of the property, the absence of arrests and encumbrances, and explains the consequences of the agreement.

After certification the agreement is entered in the Inheritance Register. This matters: the register is what confirms the existence of the agreement and its terms when the estate opens.

Obligations of the acquirer

The acquirer may be obliged to perform certain acts of a proprietary or non-proprietary nature, both before and after the estate opens (Article 1305). Typical terms are care, maintenance, medical support, utility payments and arranging the funeral.

The more specific the obligations, the fewer the disputes. Instead of 'provide care', write: 'provide food, medicines prescribed by a doctor, cleaning twice a week, and transport to hospital'.

Ban on disposal and the fate of a will

The notary imposes a ban on disposal of the property named in the agreement (Article 1307). This means the transferor cannot sell, gift or mortgage that property without the acquirer's consent.

A will made by the transferor in respect of the same property is void. Even if a will in favour of another person appears later, it will not change the fate of property already transferred under the succession agreement.

Control over performance

The transferor may appoint a person to control performance after his or her death. If no such person is appointed, the notary at the place where the estate opens exercises control.

When the agreement is terminated by court

Article 1308 provides two grounds: at the transferor's request where the acquirer fails to carry out the instructions, and at the acquirer's request where performance has become impossible. In both cases the agreement is terminated only by a court decision.

Unilateral withdrawal is not provided for by law. The parties may agree to terminate by mutual consent, but that agreement must also be certified by a notary.

Succession agreement and will: the difference

• A will is one-sided; a succession agreement is two-sided.
• A will can be revoked at any time; a succession agreement only by court or by agreement of the parties.
• Under a will the heir obtains a certificate of inheritance; under a succession agreement the property passes under the agreement itself.
• A will creates no duties for the heir before the estate opens; a succession agreement does.

Succession agreement and lifelong maintenance agreement

Under a lifelong maintenance agreement the property passes to the acquirer during the transferor's lifetime in exchange for lifelong maintenance. Under a succession agreement ownership arises only after the transferor's death, and the transferor keeps control of the property.

A lifelong maintenance agreement is used when a person is ready to transfer the property immediately. A succession agreement is chosen when the property must stay with the owner until the end of life.

What certification costs

State duty for certification of a succession agreement by a state notary is 1 per cent of the agreement amount, but not less than one tax-free minimum income in force on the day of payment (subparagraph 'a' of paragraph 3 of Article 3 of the State Duty Decree).

A private notary charges a fee agreed with the parties. Legal services, register extracts, property valuation where needed for the duty, and special forms are paid separately.

Step by step

1. Identify the property and word the acquirer's obligations specifically, listing the acts.
2. Collect the documents: passports, tax numbers, title documents for the property, a household composition certificate, and the other spouse's consent where the property is joint.
3. Apply to a notary at the location of the property (for immovables) or at the place of residence.
4. Sign the agreement, pay the duty and the fee, and obtain a copy.
5. Register the agreement in the Inheritance Register (the notary does this).
6. After the transferor's death, apply to the notary with the death certificate and the agreement to register ownership.

After the transferor's death: registering ownership

The acquirer applies to the notary at the place where the estate opens with the original agreement and the death certificate. The notary checks the validity of the agreement in the Inheritance Register and confirms that no later changes exist.

Ownership of immovable property is then registered in the State Register of Proprietary Rights. No certificate of inheritance is issued in this case: the succession agreement itself is the basis.

Where the property is subject to a ban on disposal, the notary lifts it once the transferor's death is confirmed — no separate application from the heirs is required.

Can the terms be changed

The terms can be changed only with the consent of both parties and only before a notary. Neither the transferor nor the acquirer can change them unilaterally.

Replacing the acquirer without terminating the agreement is not possible: this is in effect a new agreement requiring fresh consent and fresh certification.

Who it suits

First of all, older people who want to receive care and pass property to a specific person without relying on the order of succession. The agreement gives them control: the property cannot be sold without their consent, and non-performance is a ground for termination by court.

Second, couples without children or with a conflict between heirs. The agreement allows them to decide in advance who receives the property and to avoid disputes after death.

Third, an owner who does not want to lose control of the apartment during his or her lifetime but is ready to take on obligations towards the person who cares for them.

What is most often disputed in court

The most common grounds are non-performance by the acquirer and the argument that the transferor did not understand the meaning of his or her actions when signing. The second argument is especially frequent where the agreement was concluded by elderly people.

That is why the notary records legal capacity and explains the consequences, and why the agreement should list specific acts and deadlines — these are the main evidence in court.

Common mistakes

• General obligations of the acquirer with no list of specific acts.
• Concluding the agreement without the other spouse's consent where the property is joint.
• Trying to override the agreement with a will — such a will is void.
• No controlling person where there are several heirs and a conflict between them.
• Concluding the agreement without checking encumbrances and arrests on the property.

Frequently asked questions

The short version

A succession agreement suits people who want to pass property to a specific person and receive care or other acts during their lifetime. It offers more guarantees than a will, but also more obligations: it cannot be cancelled unilaterally, and the acquirer's duties must be specific.

Certify a succession agreement with a notary at the location of the property. Before the visit, it is worth reading how a will is made and comparing both instruments in your situation.