On May 22, 2025, the Administration of Estates of Deceased Persons (Amendment) Law of 2025 was published in the Official Gazette, bringing important changes to the Administration of Estates of Deceased Persons Law (the "Principal Law"). These amendments focus on clarifying the procedures related to the handling of estates and providing greater flexibility in the management of financial transactions within the estate process.
Key Amendments:
- Addition of a New Term in Article 2 (Interpretation):
One of the major changes is the inclusion of a new term in Article 2, which deals with the definitions and interpretation of key terms within the law. The newly added term is "Credit Transfer", as defined in the Payment Services and Access to Payment Systems Law. This inclusion establishes a clear link between the provisions of the Administration of Estates Law and the relevant financial regulations regarding credit transfers. By defining this term, the law ensures that financial transactions within the estate administration process are in line with current banking and financial regulations.
- Amendment to Article 43 (Bank Account Requirement for Personal Representatives):
Article 43 of the Principal Law, which mandates that a personal representative (such as an executor or administrator) must maintain a bank account for managing the estate of a deceased person, has also been amended. The change specifically adds a new form of transaction allowed under this provision. The amendment adds the phrase "or credit transfer" after "bank cheque" in subsection (1), as follows:
"A personal representative must open an account at a specific bank for managing the estate they are handling. Any monetary amount received by the personal representative must be deposited into this account and no payment may be made from it except by bank cheque or credit transfer."
This change provides greater flexibility in how financial transactions can be handled within the estate management process, acknowledging modern financial practices, such as electronic transfers, alongside traditional methods like bank cheques.
- Provision for Exemptions in Special Circumstances:
The amendment also introduces a provision in subsection (2) of Article 43, which allows for exemptions to the bank account requirement in certain circumstances. Specifically, it states that if the enforcement of these provisions would cause significant difficulty or hardship, the Supreme Court or the President of the District Court (in the case of a specific category of estate) may, through directions, exempt the personal representative from complying with the requirement to maintain a bank account. This flexibility aims to alleviate potential challenges faced by personal representatives, particularly in cases where adhering to the regulations would cause undue hardship, such as in remote areas or in complex estate cases.
The Administration of Estates of Deceased Persons (Amendment) Law of 2025 represents a significant step toward modernizing the estate administration process in Cyprus. By incorporating updated financial practices and providing exemptions for special cases, the law seeks to simplify the management of estates, reduce unnecessary burdens on personal representatives, and ensure that the process remains adaptable to contemporary needs. These changes will help ensure that the estate administration system is more efficient, flexible, and aligned with current financial practices, benefiting both the personal representatives and the beneficiaries of estates.
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