Overseas assets can form part of the estate when an Indonesian and a foreign national are married and one spouse dies. Their treatment depends on how the asset was owned during the marriage, which inheritance rules apply, and, for certain assets, the law of the country where the asset is located.
What Overseas Assets Form Part of the Estate?
Before an overseas asset can be distributed to heirs, it is necessary to determine how it was owned during the marriage.
Under Article 35 of Indonesia’s Marriage Law, property acquired during marriage generally becomes joint marital property. Property owned before the marriage, as well as property received individually as a gift or inheritance, generally remains under the respective spouse’s control unless the spouses determine otherwise.
A prenuptial or postnuptial agreement can also affect how property is held between the spouses.
These principles can apply to overseas bank accounts, shares, business interests, investment accounts, and real estate. If an overseas investment is joint marital property, for instance, the entire asset should not automatically be treated as belonging to the deceased’s estate because part may belong to the surviving spouse.
Which Inheritance Rules Apply to Overseas Assets?
Indonesia does not apply the same inheritance rules to every estate. For a Muslim deceased, Islamic inheritance law generally governs the inheritance, while an estate involving a non-Muslim deceased may fall under Indonesia’s civil or applicable customary inheritance framework.
For overseas assets, a distinction may arise between determining an heir’s inheritance rights in Indonesia and dealing with the asset in the country where it is held. An Indonesian inheritance document may establish an heir’s status or entitlement without automatically satisfying the requirements for dealing with that asset overseas.
Why Overseas Real Estate May Require Separate Treatment
Foreign real estate requires particular attention because rights over immovable property are generally governed by the law of the country where the property is located.
If an estate contains a house, apartment, commercial property, or land overseas, establishing who inherits the property does not necessarily transfer its legal ownership. Local probate, succession, land-registration, or tax requirements may still apply.
A related issue arises when a foreign spouse inherits land in Indonesia. Under Article 21(3) of Indonesia’s Basic Agrarian Law, a foreign national who acquires Hak Milik through inheritance without a will must relinquish that right within one year. If it is not relinquished, the right is extinguished by law and the land falls to the state, subject to existing third-party rights.
Being recognized as an heir therefore does not necessarily mean a foreign national can retain the inherited land right.
Can an Indonesian Will Cover Overseas Assets?
An Indonesian will can address overseas assets, but its effect in another country depends on whether that jurisdiction recognizes it.
Some families with assets in several jurisdictions use separate wills for different countries. These need to be coordinated so that one will does not revoke or conflict with another.
How Do Heirs Claim Overseas Assets?
A foreign bank, investment provider, company registry, land authority, or court may require a death certificate, documents identifying the heirs, a will where one exists, and evidence showing who has authority to administer the estate.
Indonesian public documents used overseas may require an Apostille where the receiving country applies the Apostille Convention and the document falls within its scope. Certified translations or additional authentication may also be required.
Contact Jarji Zaidan & Partners for an Indonesian Cross-Border Estate
Jarji Zaidan & Partners advises foreign spouses and families on the Indonesian aspects of cross-border estates, including marital property, wills, inheritance rights, and overseas assets. Contact us at info@jarjizaidan-partners.com or on WhatsApp +62 821-9000-3273 / +62 813-1403-8907.
