Guide on the Application of Article 51 of Cap.195 in Estate Inheritance 

Introduction 

Article 51 of the Administration of Estates Law (Cap.195) governs the calculation of inheritance shares for descendants in the Republic of Cyprus. It mirrors the now-repealed Section 47(1)(iii) of the UK’s Administration of Estates Act 1925, abolished in 1996. Article 51 is applicable when determining a descendant’s rightful inheritance and takes into account any property given to the descendant by the deceased during their lifetime. 

This guide explains the key provisions of Article 51, outlines when it applies, and examines relevant court decisions to clarify how inheritance shares are calculated.  

1. The Framework of Article 51

According to Article 51 of Cap.195, if a child or another descendant of the deceased is entitled to inherit under intestacy (without a will), any movable or immovable property that they have already received from the deceased must be factored into the calculation of their inheritance share. This includes property given through:  

• Gifts during the deceased’s lifetime 
• Marriage contracts 
• Dowries 
• Deathbed gifts 

The critical requirement is that these properties be added to the estate and offset against the descendant’s eventual inheritance, unless the deceased explicitly stated otherwise in their will. 

Conditions for the Application of Article 51: 

The provisions of Article 51 only apply if all the following criteria are met: 

1. The heir is a descendant (child or grandchild).
2. The descendant received property from the deceased prior to death.
3. The property was given in one of the specified ways (gift during life, under a marriage contract, as a dowry, or as a deathbed gift).
4. The deceased did not exclude this property from consideration in their will.

If any of these conditions are not satisfied, Article 51 does not apply.

2. Gifts During the Lifetime of the Deceased

A gift made during the lifetime of the deceased (by way of advancement) is considered in inheritance calculations if it was intended to establish or settle the child in life, and not just an occasional or casual payment. The courts evaluate such gifts on the specific circumstances under which they were made, including the financial situations of both the deceased and the recipient. 

Criteria for Gifts as “Advancement”:

• The gift must be for the settlement of the child. 
• It must be more than an occasional payment. 
• The gift is usually made when the child is still young. 

Court Precedent: In In re the estate of Andreas Leontiou (2012), the court referred to UK case law to emphasize that gifts made to a child must be intended as a permanent provision. Occasional payments do not count as advancements under Article 51. 

Valuation of Gifts:

The value of the gift is calculated as of the time of the deceased’s death, not the time of the gift. This ensures that the heir’s share reflects the true value of the estate at the time of inheritance. 

Example: In Kyriakides v. Dikegoropoulou (2012), the court ruled that the value of gifts given during the lifetime of the deceased should be added to the value of the estate and divided among the heirs, ensuring equality among descendants.

3. Property Under a Marriage Contract

Article 51(b) states that property given under a marriage contract is included in the calculation of inheritance shares. However, Article 45 of Cap.195 exempts spouses from bringing such property into account when calculating their share of the estate. 

4. Deathbed Gifts (Donatio Mortis Causa)

A deathbed gift refers to property given by a person who expects to die soon due to illness. Article 51(d) stipulates that such gifts are considered in the calculation of inheritance shares, provided the gift meets the following conditions: 

• The donor is over 18 years old and mentally competent. 
• The gift is made in the presence of at least two witnesses. 
• The property given must be movable property. 
• The donor is suffering from an illness and expects to die from it. 

If the donor recovers or survives the recipient, the gift is void. 

5. Calculating the Heir’s Share

The calculation of the heir’s share involves: 

1. Adding the value of all property given to the descendant during the deceased’s lifetime.
2. Dividing the total estate value by the number of heirs.
3. Subtracting the value of gifts already received by each heir from their respective shares.

No Obligation to Return Excess: 

If a descendant has already received more than their fair share through lifetime gifts, they are not required to return any excess. However, they will be excluded from receiving additional inheritance beyond what is due. 

This was confirmed in Kyriakides, where the court emphasized that descendants who received greater advancements during the deceased’s life are not required to equalize their inheritance share by returning the surplus but will simply not inherit more upon the death of the deceased. 

CONCLUSION 

The application of Article 51 of Cap.195 ensures fairness in the distribution of estates by factoring in property given to descendants during the deceased’s lifetime. However, the provision operates only when specific criteria are met, and the deceased has not excluded any property from consideration in their will. 

The courts have consistently ruled that gifts intended to settle a child in life should be included in the calculation of inheritance shares, with the value of such gifts assessed at the time of the deceased’s death. This ensures that all descendants are treated equitably, based on both the lifetime gifts received and their statutory inheritance rights.