Most people assume there are only two ways to pass property to children or loved ones: write a will or execute a gift deed. In reality, Russian law has offered a third instrument since 2019 — the inheritance contract. It is more flexible than a will and safer than a gift.

What an inheritance contract is

It is a bilateral agreement between you (the future testator) and those you want to inherit your property. The contract is drawn up and certified by a notary while both parties are alive.

Unlike a will, which you write in secret and unilaterally, an inheritance contract is an open transaction. You sit down together, agree on the terms, and both sign the document.

Legal basis: Article 1140.1 of the Civil Code of the Russian Federation.

Three defining features

The heir’s obligations during your lifetime

This is the fundamental difference from a will. The contract can specify that the heir must fulfil certain conditions now — not after your death, but while you are alive.

For example: “The apartment passes to my son, provided he pays me 30,000 roubles monthly and covers my medical expenses.” Or: “The business share passes to my partner if they undertake to pay the rest of the family 20% of annual profit.”

No surprises

All parties to the contract know its contents from the moment of signing. This eliminates the classic scenario of a “battle at the notary’s office” when heirs learn for the first time — after the death — who gets what.

Priority over a will

If both a will and an inheritance contract exist for the same property, the court will give precedence to the contract — even if the will was written later (Art. 1140.1 of the Civil Code).

Advantages of an inheritance contract

You remain the owner. Until your death the property belongs to you. The heir cannot evict you or sell the apartment — unlike what can happen after a gift.

Reciprocal obligations. You can tie inheritance to specific actions. This is a guarantee of a secure old age that neither a will nor a gift deed provides.

Protection from unilateral changes. The heir has certainty: you cannot secretly rewrite the document in favour of someone else. Modifying or terminating the contract unilaterally without a court ruling is not possible.

Harder to contest. The heir is a party to the contract. Challenging it on grounds of psychological pressure or alleged incapacity is significantly more difficult than contesting a will.

Drawbacks and limitations

Restricted freedom. You can still sell the property mentioned in the contract. But if the heir has already started fulfilling their obligations, you will have to compensate their documented expenses or seek termination through the courts.

Statutory share. The contract does not override the rights of incapacitated children, spouses, or parents to their mandatory share of the estate (Art. 1149 of the Civil Code). If such heirs exist, factor this in when drafting the contract.

No secrecy. The other party knows the terms from day one. If keeping the document confidential from the heir matters to you, this instrument is not the right choice.

Emerging case law. The inheritance contract was introduced into the Civil Code in 2019. Court practice on disputed situations is still developing.

Who benefits most from an inheritance contract

Business owners. If you want to pass the company to a specific successor under clear terms — not just giving them a share, but binding them to obligations towards the family or other shareholders.

Elderly owners who need care. The classic situation: “I’ll leave the apartment to whoever looks after me.” An inheritance contract makes this legally binding and protects you from a heir who keeps promises only until the signing.

Complex families. Children from different marriages, estranged relatives, a complicated family structure — the contract lets you bring everyone together, openly fix the ground rules, and close off future conflict while everyone is still alive.

Conditional transfers. For example: “The apartment passes to my grandson, but only if he completes a university degree” — or “The dacha passes to my daughter, subject to her providing lifelong support to her mother.”

Frequently Asked Questions

Can an inheritance contract be terminated unilaterally? No. The contract cannot be modified or dissolved without the other party’s consent. If the heir fails to meet their obligations, that is grounds for dissolution through the courts. If circumstances change, either mutual agreement or a court ruling is required.

What happens if the heir dies before the testator? The contract terminates in respect of the deceased heir’s obligations, unless the contract itself provides otherwise. The precise outcome depends on the wording of the document — which is why careful drafting is critical.

Do incapacitated relatives still have a mandatory share? Yes. An inheritance contract does not override the rights of mandatory heirs — incapacitated children, a spouse, or parents — to their statutory share. Their rights are protected by Article 1149 of the Civil Code regardless of the contract’s contents.

How much does it cost to draw up an inheritance contract? The cost consists of a fixed federal notarial tariff (not based on the value of the property) plus the notary’s charge for legal and technical work (UPTK), set by the regional notarial chamber. The final amount depends on the region and the specific notary.

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Inheritance Contract: What It Is and Who Needs It