Ownership & RightsInheritance
Synonyms: Succession on death، Estate inheritance، Hereditary transfer
Last updated: 2026-09-25
Short Definition
Inheritance is the transfer of the money and financial rights left by a deceased person, including real estate, to his living heirs by force of Sharia and law, after funeral costs, payment of his debts and execution of his will within one-third.
Overview
Inheritance is the transfer of the money and financial rights left by a deceased person, including real estate, to his living heirs by force of Sharia and law, after funeral costs, payment of his debts and execution of his will within one-third.
In the Kingdom inheritance is governed by the Personal Status Law issued by Royal Decree (M/73) dated 6/8/1443H, Part Seven. The estate is the money and financial rights a person leaves at death (Art. 197), and claims on it are ranked: funeral costs, then debts, with those attached to a specific estate asset such as a mortgage taking priority, then execution of the will, then division of the remainder among the heirs (Art. 198). Entitlement requires the death of the deceased in fact or by judgment, the heir being alive after him, and the existence of a cause of inheritance with no impediment (Art. 199); impediments include intentional unlawful killing and difference of religion (Arts. 200 and 202). Inheritance is by fixed share, by residuary right (ta'sib), by both, or by kinship through females (rahm) (Art. 204). The Civil Transactions Law provides that an heir owns his share by inheritance under the applicable provisions (Art. 645).
For real estate, inheritance follows practical steps: proof of death, then an heir-inventory deed (hasr al-waratha) issued electronically through the Najiz platform, with Personal Status Courts competent for heir inventories and for dividing an estate where there is a dispute, a minor, an absent heir or a will (Art. 33, Law of Procedure before Sharia Courts). The heirs become undivided co-owners of the property until partition. In areas announced for registration, inheritance must be recorded in the Real Estate Registry, and the relevant agencies notify the registry of an owner's death and provide an official list of heirs (Arts. 13 and 15, Law of Real Estate Registration). The division of an estate is exempt from the Real Estate Transaction Tax.
⚖️ Legal Basis
Inheritance is governed by the Personal Status Law (Royal Decree M/73 dated 6/8/1443H), Part Seven 'Estate and Inheritance' (Arts. 197–245), including the ranking of claims on the estate (Art. 198), the conditions and impediments of inheritance (Arts. 199–203) and the one-third limit on wills (Art. 190). Article 645 of the Civil Transactions Law confirms that an heir owns his share by inheritance. Personal Status Courts hear heir inventories, inheritance and disputed estate divisions (Art. 33, Law of Procedure before Sharia Courts); the Law of Real Estate Registration requires inheritance to be recorded (Arts. 13 and 15); and the RETT Implementing Regulations exempt the division of an estate from the tax.
💡 Practical Example
Nasser dies leaving a villa in Riyadh worth SAR 2,000,000, mortgaged to a bank for SAR 300,000, and a will of SAR 100,000 to a charity. The heirs obtain the heir-inventory deed through Najiz; the bank debt is paid first because it is attached to the villa itself, then the will is executed because it is below one-third of the estate, leaving the heirs SAR 1,600,000 in value. The villa's deed is transferred into the heirs' names in their Sharia shares as undivided co-owners without RETT; when they later agree to sell it to a third party, that sale is taxable at 5%.
⚠️ Common Mistakes
- ✗Dividing or selling the property before paying the deceased's debts, although debts rank ahead of the heirs' rights.
- ✗Executing a will exceeding one-third of the estate without the heirs' consent, or ignoring a valid will within one-third.
- ✗Delaying the heir-inventory deed and deed transfer, which blocks dealing with the property or collecting its rent.
- ✗Assuming transfer of the property to the heirs attracts 5% tax; the division of an estate is exempt, while a later sale to a third party is taxable.
- ✗One heir using or leasing the property alone without the others' agreement, although they are undivided co-owners.
🌍 International Differences
In the UAE and Egypt, Islamic inheritance rules apply to Muslims, while the UAE allows non-Muslims to apply their own laws or register special wills. Turkey's Civil Code applies a civil inheritance system that gives sons and daughters equal shares and allows wider testamentary freedom. In common-law countries, freedom of testation generally prevails and estates go through judicial probate.
FAQs
In what order are claims on a deceased person's estate paid?▾
Under Article 198 of the Personal Status Law: funeral costs, then debts, with those attached to a specific estate asset paid first, then execution of the will, then division of the remainder among the heirs.
How do I obtain an heir-inventory deed?▾
It is requested electronically on the Ministry of Justice's Najiz platform by logging in through Nafath and choosing the heir-inventory service. Personal Status Courts are competent to establish death and inventory the heirs.
Is the transfer of property to heirs subject to the Real Estate Transaction Tax?▾
No. The RETT Implementing Regulations exempt real-estate dispositions made to divide an estate under applicable laws. A sale of the property by the heirs to a third party, however, is taxable at 5%.
What prevents someone from inheriting under Saudi law?▾
The main impediments are intentional or quasi-intentional unlawful killing of the deceased and difference of religion, subject to the rules on wills, under Articles 200 and 202 of the Personal Status Law. Someone who killed the deceased by mistake inherits from the estate but not from the blood money.
Must inheritance be recorded in the Real Estate Registry?▾
Yes, in areas announced for registration. Article 13 of the Law of Real Estate Registration requires inheritance to be recorded, and Article 15 requires the relevant agencies to notify the registry of an owner's death and provide an official list of heirs.
