Russian Succession Law and Estates with Foreign-Situated Assets: What Practitioners Need to Know

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Category tag:
Practice Analysis

Byline:
By Kristina Kornouhova

May 2026

INSIGHTS ARTICLES —russian successio law foreign assets

Russian succession law — Part III of the Civil Code of the Russian Federation — applies to all assets located in Russia on the date of the deceased's death, regardless of the nationality, domicile, or habitual residence of the deceased. For a client with assets distributed across multiple jurisdictions, the Russian succession rules operate in parallel with the succession laws of other jurisdictions, and the interaction between them requires careful analysis.

The Basic Framework

Russian succession law provides for two routes of inheritance: by will and by statute. Where a valid will exists and covers Russian-situated assets, the assets pass in accordance with the will subject to the mandatory share rules. Where no will exists, or where a will does not cover all Russian-situated assets, the statutory order of inheritance applies.

The statutory order of inheritance establishes eight classes of heir (very broadly following an order of kinship), with the surviving spouse receiving a share alongside the first-class heirs (children and parents of the deceased).

The Mandatory Share

The most important feature of Russian succession law for estate planning purposes is the mandatory share. Under Article 1149 of the Civil Code, the following persons are entitled to receive a minimum share of the estate regardless of the terms of any will: minor children of the deceased; adult children who are disabled (as defined by Russian law); the disabled spouse of the deceased; and disabled parents of the deceased.

The mandatory share is one-half of what the person would have inherited if there had been no will. It cannot be excluded by will, by contract, or by any other pre-death arrangement — it is a statutory right that vests automatically on the deceased's death.

For a client with a will that seeks to direct their estate in a specific way — leaving the bulk of the estate to a particular family member or to a charitable purpose — the mandatory share can substantially affect the intended outcome. The mandatory share is calculated against the deceased's entire estate (including assets outside Russia, in some interpretations), and its satisfaction from Russian-situated assets may require the liquidation of Russian property that the client intended to pass intact.

The Treatment of Foreign Trusts

A foreign trust — a trust established under English law, Jersey law, or any other common-law jurisdiction — is not recognised as a separate legal entity under Russian law. Russian law does not have a domestic trust law and does not treat a foreign trust as the owner of the assets it holds.

The practical consequence is that Russian-situated assets held in a foreign trust are treated, for Russian succession purposes, as belonging to the trustee personally. On the death of the trustee, those assets would pass under the trustee's own succession — or, if the trustee is a corporate trustee, under the corporate succession arrangements — rather than under the trust's terms. On the death of the settlor, the trust assets are not part of the settlor's estate (under the trust law of the governing jurisdiction), but the Russian tax and succession authorities may take a different view where Russian-situated assets are concerned.

For HNWI clients with Russian-situated assets held in common-law trust structures, the Russian succession position needs to be analysed specifically — the standard trust arrangement may not produce the intended outcome in Russia.

The Russian Personal Foundation as a Succession Tool

The Russian personal foundation (established under Federal Law No. 287-FZ) addresses the succession challenge for Russian-situated assets by removing those assets from the founder's succession estate entirely. Once validly transferred to the foundation, those assets do not pass under Russian succession law on the founder's death — they continue to be managed by the foundation for the benefit of the designated beneficiaries according to the conditions document the founder specified.

The mandatory share rules do not apply to foundation assets in the same way as they apply to estate assets, because the foundation assets are not part of the founder's estate. This makes the personal foundation significantly more flexible than a will for Russian succession planning.

Practical Advice for Multi-Jurisdictional Estates

For a multi-jurisdictional estate that includes Russian-situated assets, the planning process should: identify all Russian-situated assets (real property, shares in Russian companies, rights to Russian-source income, and bank accounts in Russian banks); assess the applicable succession rules for each class of asset; identify the mandatory share position and the claimants who may assert it; review any existing testamentary or structural arrangements for compatibility with Russian succession law; and consider whether a Russian personal foundation would simplify the Russian succession position.

We work alongside the client's lead estate planner — whether a STEP practitioner, a private client solicitor, or a family office — providing the Russian-law component of the overall succession plan.