An Introduction to Inheritance, Wills, and Estate Planning - Key Concepts and the Role of Wills
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After understanding the broader inheritance landscape, it is equally important to examine the fundamental concepts that determine who may inherit, under what conditions succession takes place, and how an individual may express their final wishes through a will. These foundational principles shape the entire succession process and serve as the basis for effective estate planning. In this ARMA Update, we provide an overview of the key concepts of succession and the role of wills in Indonesia’s inheritance framework.
Key Concepts of Succession
Under Article 830 of the Civil Code, inheritance arises only upon death. At that moment, the decedent’s proprietary rights and obligations transfer to eligible heirs. Succession requires three elements: the occurrence of death, the presence of heirs, and an open estate. Heirs may inherit either by law through intestate succession or through testamentary provisions in a will. Legal heirs include the surviving spouse, descendants, ascendants, and certain relatives, while voluntary heirs are appointed by the testator.
The right to inherit is subject to limitations. Article 838 disqualifies individuals deemed unworthy, such as those who have harmed the deceased or interfered with the making of a will. This reflects the principle that inheritance carries both legal and moral considerations.
To protect close family members, the Civil Code introduces the reserved portion or legitime portie. This statutory entitlement ensures that certain heirs receive a minimum share of the estate. Any testamentary disposition that infringes upon this protected portion may be reduced, while the remaining disposable portion may be freely assigned according to the testator’s wishes.
Wills as an Expression of Intent
A will (testament) is a unilateral legal declaration specifying how a person’s estate will be distributed after death. As regulated under Articles 875–940 of the Civil Code, a will is revocable at any time during the testator’s lifetime and becomes effective only upon death. Indonesian law recognizes three primary forms of wills:
- Olographis Testament (Handwritten Will) — written and signed entirely by the testator’s hand and later deposited with a notary or the Estate Office (Balai Harta Peninggalan or “BHP”).
- Public or Notarial Testament — drawn up before a notary and two witnesses, forming the most secure and commonly used form.
- Sealed or Private Testament — written by the testator or another person, sealed, and presented before a notary and witnesses.
Upon the testator’s death, the will must be registered and opened by the BHP in the presence of relevant heirs or their representatives. The BHP’s role ensures transparency and legal certainty in executing the deceased’s last wishes. For a more detailed discussion on the BHP’s functions, please refer to our previous Private Wealth Series update on The Role and Functions of the Balai Harta Peninggalan (“BHP”) available here .
By allowing individuals to appoint voluntary heirs and determining the distribution of the disposable portion of their estate, wills serve as an important expression of testamentary autonomy. Within the limits of the reserved portion, they offer flexibility and clarity that can significantly reduce uncertainty and minimize future disputes among heirs.
Disclaimer:
This client update is the property of ARMA Law and intended for providing general information and should not be treated as legal advice, nor shall it be relied upon by any party for any circumstance. ARMA Law has no intention to provide a specific legal advice with regard to this client update.
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