Inheritance and Frozen Assets When a Sanctioned Person Is Dead – Legal Action Possible

When a person subject to EU sanctions dies, legal uncertainties often arise for their heirs. In particular, questions emerge regarding the inheritance of frozen assets (money, securities, etc.). This situation typically affects family members who are not themselves sanctioned but face significant hurdles in accessing or managing the estate.

Unlisting Requirement

In general, when a person dies, their heirs must present official proof of inheritance to gain access to the deceased person's bank account. In cross-border situations, this typically also requires a certified translation and possibly an apostille.

However, if the assets of the deceased were frozen due to the deceased’s inclusion on an EU sanctions list (such as Annex I of Regulation (EU) No 269/2014 sanctioning Russia), access to the account will not be granted by the bank or financial institution as long as the deceased remains listed under the sanctions regime.

Unlisting Request to the EU Council

Sanctions are targeted measures. When a sanctioned person dies, the original grounds for listing generally cease to exist, and the EU Council is obliged to remove the respective person from the sanctions list.

Since the Council is not automatically informed of a listed person's death, the heirs may notify the Council of the death — providing appropriate evidence — and request the delisting of the deceased individual.

In the context of sanctions against Russia under Regulation (EU) No 269/2014, the Council may nonetheless retain the deceased person’s name on the sanctions list if

"their delisting would pose a risk of undermining the objectives of EU restrictive measures because of a likelihood that the assets concerned would otherwise be used to finance Russia’s war of aggression against Ukraine or other actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine."

This is a high threshold, and the Council must provide substantial justification to retain a name on the sanctions list.

Legal Action with the General Court of the EU

If the Council refuses to remove the deceased person from the sanctions list despite a formal request, the heirs may initiate legal action with the General Court of the European Union, observing a two-month time limit. In such proceedings, the Council must provide substantial evidence to justify maintaining the listing. If the Council fails to do so, the Court will annul the listing.

Act Early and Seek Legal Advice

Due to the complexity of sanctions law, heirs are strongly advised to seek legal advice at an early stage. A qualified legal professional can assist in analysing the sanctions status of the deceased, preparing the unlisting request, and adadvising on risk and compliance issues for heirs and executors. In proceedings before the General Court, legal representation by a lawyer authorised to practise before an EU court (e.g. a German Rechtsanwalt) is mandatory.

Conclusion

Inheriting from a sanctioned individual involves both inheritance law and sanctions law. While inheritance itself is not prohibited, heirs must navigate a complex process to access frozen assets. With the right legal support, these challenges can be addressed, and rightful claims secured.

If you require legal assistance regarding frozen assets or inheritance matters under sanctions law, please contact Hendrik Müller-Lankow for an initial consultation.