Don't be Adrift: The Unexpected Legal Dilemma over Superyacht Inheritance in the European Union

To the untrained eye, European inheritance law may appear reassuringly coherent, even simplistic. But don’t be fooled — the tranquillity of these waters hides some vicious undertows. The Devil, as they say, is in the detail, particularly if one has the privilege — or misfortune — of inheriting a superyacht.

The passage of EU Succession Regulation (Regulation (EU) No. 650/2012) has performed grandly in harmonising disparate laws. The principle? Simple — a person’s estate is governed by the law of their habitual residence. One person, one law. The objective? Utterly laudable — clarity and coherence.

While for the most part, the objectives were delivered, an overlooked area stands out — the superyacht. Akin to a glamorous, globe-trotting persona, the luscious superyacht, is legally regarded as a ‘movable asset.’ But this moniker belies its unique nature – a hybrid between real estate and a regulated commercial platform.

Inheritance law dictates ‘who’ will inherit the yacht. Still, the national registry law holds the power to determine ‘whether’ this inheritance will be recognised in reality. These two legal territories, parallel yet sometimes in tension, dramatically influence the legal landscape for the inheritor of a yacht.

Adding to this is the pragmatic regulatory environment in which a yacht operates. This includes flag-state registers, ownership registers, various filings, and compliance documentation. The burden of these requirements can prove overwhelming, creating further hurdles for the unprepared inheritor.

So, dare to inherit a superyacht? Pull up the anchor of simplistic understanding; navigate carefully these legal waters. For as brilliant and luring as they are, without the necessary understanding, one might find themselves caught in a legal maelstrom.