Provisions in a Business Owner’s Will: How the Testator’s Instructions Can Affect the Distribution of Assets

JUDr. Jakub Dohnal, Ph.D., LL.M.
JUDr. Jakub Dohnal, Ph.D., LL.M.
4.5.2026 | ARROWS law firm

Entrepreneurs who own a company, business interests, or foreign assets face specific challenges when drafting a will. Although the new Civil Code has, since 2014, made it possible to set conditions, instructions, and time limits for inheritance, without expert legal advice there is a risk of invalid clauses and protracted disputes. This article will guide you through how to formulate your last will properly so that it is legally binding and effective.

The photograph shows a lawyer during a consultation regarding the proper drafting of a will.

The new Civil Code does allow inheritance to be made conditional, but the condition must be clear, feasible, lawful, and consistent with good morals. A vague or harassing condition will not be respected. There is a major legal difference between conditions, instructions, and time stipulations.

A condition concerns the creation of the right to inherit (you inherit only if you meet the condition), an instruction is an obligation after acquiring the inheritance (you must deal with the assets in a certain way), and a time stipulation is a time limitation. Each instrument has different legal consequences.

An entrepreneur must protect both the business and the other heirs. If they leave the entire inheritance to one heir on the condition that they take over the business, forced heirs (descendants) may still claim their mandatory share under Czech law. Without a well-thought-out distribution, the entrepreneur exposes themselves to disputes.

Without expert interpretation, there is a high risk of invalidity. The most common mistake is vague wording (“manage the company honestly”), a condition tied to marriage (“you may keep the company provided you do not marry”), or impossible conditions. A court will not respect such clauses.

Ancillary clauses in a will: Why they are essential for entrepreneurs

Before we go into detail, we need to understand what the new Civil Code (Act No. 89/2012 Coll., hereinafter the “Civil Code”) has introduced since 1 January 2014. The old 1964 code did not allow any conditions in a will at all. If you wrote in a will, “you will receive the house, but only if you live in place X”, such a condition was simply ignored and the heir would acquire the house unconditionally.

This made sense in terms of legal simplicity, but in practice it caused enormous difficulties for entrepreneurs and high-net-worth individuals. They could not say: “You will inherit the company, but only if you keep it running and do not sell it within five years.”

As of 1 January 2014, everything changed. The new Civil Code introduced so-called ancillary clauses in a will. These are three basic instruments:

1. Conditions – the testator provides that the heir acquires entitlement to the assets only if a certain future event occurs, which at the time the will is made is not certain to occur. For example: “You will inherit the company once you reach the age of 30” or “The house is yours only if you graduate from university.”

2. Time stipulation – the testator provides that the heir acquires the assets only after a certain period has elapsed, or only for a certain period of time. Unlike a condition, this concerns a point in time that will certainly occur. For example: “You will own the apartment for five years from my death, then it will pass to your brother.”

3. Instructions – the testator imposes an obligation on the heir as to how the assets are to be handled, or requires the heir to perform certain acts. An instruction does not directly prevent the acquisition of the inheritance, but it imposes an obligation. For example: “Take care of the grave so that it is kept in good order” or “Manage the company so that it continues its existing business.”

Why is this essential for entrepreneurs? Because a business cannot simply be divided among multiple heirs in the same way as other assets. If you have two sons and one is an entrepreneur while the other is an accountant, you do not want the accountant to have the same ownership stake and voting rights in the business.

You want the business to remain in the hands of a capable individual, possibly with a condition that the remaining heirs receive financial compensation. Ancillary clauses make this possible.

Most common questions about ancillary clauses

1. Do conditions in a will also apply to wills made before 2014?

No, generally not. The validity of a legal act, including a will made before 1 January 2014, is assessed under the legislation effective at the time it was made. Under the old Civil Code, it was not possible to validly stipulate conditions in a will; such clauses were considered invalid and were disregarded without affecting the rest of the will. 

2. What happens if an heir does not fulfil the condition?

It depends on the type of condition. With a resolutory condition (it must not occur for the inheritance not to lapse), the heir loses the inheritance. With a suspensive condition (it must occur for the heir to acquire the assets), the heir does not acquire the right at all; the assets then pass to a substitute heir if one was appointed, or the statutory order of succession applies.

3. Do I need to have the conditions in the will approved by everyone involved?

No, a will is a unilateral legal act. Your decision is sufficient. However, if you want everyone to trust your wishes and avoid disputes in the probate proceedings, it is advisable to have the will drawn up in the form of a notarial deed in the Czech Republic, which increases its evidentiary value.

Types of conditions in a will: Suspensive and resolutory

Let us now explain how conditions actually work in legal practice. Czech law distinguishes two types of conditions, and their legal effects are fundamentally different.

Suspensive conditions

A suspensive condition is one that postpones (shifts in time) the acquisition of the right to inherit. The heir becomes an heir only at the moment the condition occurs. If the condition does not occur, the heir receives nothing and the assets pass to a substitute heir, or the statutory order of succession applies.

Practical example: A father makes a will: “You will inherit the company once you reach the age of 35.” The son is 22 at that moment. The father dies. The son becomes the heir to the company only when he reaches 35. Until then, the company is managed by an estate administrator or someone else appointed by the father in the will.

A suspensive condition has the feature that the heir does not acquire the inheritance at the moment of the testator’s death, but only later. This creates complications for managing the company, any settlement with creditors, and potentially also for taxes.

A properly set suspensive condition should be drafted entirely clearly so that no doubts arise in the probate proceedings.

Resolutory conditions

A resolutory condition is the opposite. The heir acquires the assets immediately (as standard), but if a certain future event occurs, they lose the assets. A resolutory condition therefore relates to the termination of the right to inherit.

Practical example: A father writes: “You will inherit the company, but if you sell it within five years, it will pass to your brother.” The son becomes the heir at the moment of the father’s death and assumes the rights immediately, but if he sells it before five years have elapsed, his inherited right to the company terminates and the company passes back to the brother.

A resolutory condition is more practical from the perspective of asset management because the heir acquires the rights immediately and can act. However, it must be defined very clearly; otherwise legal uncertainty arises. Once a resolutory condition occurs, the matter is treated as if the heir had never acquired the inheritance.

This is where we see the key practical risk for business owners. If you write in your will: “You will get the company, but only if you run it honestly,” such a condition is too vague and can be interpreted in many different ways. What does “honestly” mean? As soon as something happens to the company—say it shows lower profits—can the other heir claim that the condition was not met and that they should take over the company instead? A dispute within the family will then break out immediately.

Most common questions about suspensive and resolutory conditions

1. Which condition is safer for a company—suspensive or resolutory?

In general, a resolutory condition is more practical for a company, because the heir acquires the rights immediately and can act on behalf of the company. A suspensive condition may lead to a long period of uncertainty and paralysis. But it always depends on the specific situation and on what you, as a business owner, want to achieve.

2. What if the heir for whom the suspensive condition was set dies before it is fulfilled?

If the heir who is to acquire the inheritance under a suspensive condition dies before the condition is fulfilled, their right to the inheritance expires and does not pass to their own heirs, unless the testator expressly provided otherwise in the will (for example, by appointing a substitute heir for such a case). The assets then pass to the substitute heir, if one was appointed, or the statutory order of succession applies.

3. Is it possible to have both suspensive and resolutory conditions in one will at the same time?

Yes, but it is strongly not recommended, because it increases uncertainty and the risk of disputes. It is better to choose one approach and formulate it clearly. The attorneys at ARROWS, a Prague-based law firm, can help you decide which approach is most suitable for your situation.

Instructions in a will: Obligations of heirs

Now we will look at the third pillar of ancillary clauses—instructions. An instruction differs fundamentally from a condition in that compliance or non-compliance with the instruction does not directly affect the acquisition of the inheritance, unless the testator expressly provided otherwise.

The heir acquires the assets in the usual way, but must then comply with certain obligations. An instruction is an obligation imposed by the testator on an heir or a legatee to deal with the assets in a certain way or to perform certain acts. The subject matter of an instruction can be practically anything that is legally permissible under Czech law.

Examples of instructions in practice

Example 1: Instruction to take care of property

“I instruct you to take care of the family house, keep it in good condition, and appoint your heir in your own will so that they continue to manage it.” Such an instruction makes sense if you want the property not to be lost across generations.

Example 2: Instruction relating to a company

“I instruct you to participate in the management of the company I am leaving you. You must work in it at least 20 hours per week for ten years. If you neglect your duties, you will be fined CZK 50,000 for the benefit of the XYZ foundation.”

Example 3: Instruction regarding care for a person/animal

“I instruct you to take care of my dog Filix and to ensure he has a veterinary check-up every month. If you fail to do so, the part of the legacy I bequeath to you passes to an animal protection foundation.” Here, the instruction also includes a sanction (a partial legacy).

Example 4: Instruction relating to social responsibility

“I instruct you to donate 10 percent of the company’s annual profit to public-benefit purposes in the field of education. If you do not do so, the right to the company passes to your brother.” This is an instruction combined with a resolutory condition.

Enforcement of instructions and sanctions

The law does not provide that failure to comply with an instruction automatically leads to the loss of inheritance rights, unless the testator expressly provided otherwise. Instead of an automatic loss of the inheritance, the law prefers enforcement of compliance with the instruction.

Compliance with an instruction may be enforced by the executor (if appointed), an heir who would benefit from the instruction being complied with, or the person for whose benefit the instruction was made (e.g., a foundation in the case of a donation). A claim may be brought before a Czech court to compel compliance with the instruction.

If the testator did not expressly provide that failure to comply with the instruction is to be linked to the loss of the inheritance (i.e., as a resolutory condition), then the heir does not lose the inheritance, but is obliged to comply with the instruction. 

However, if the testator linked such a sanction mechanism to the instruction (a so-called sanction instruction), it is treated as a resolutory condition and the heir may lose the inheritance if they fail to comply with the instruction.

But be careful—the instruction must be very clear and specific. If you write only “manage the company well” or “take good care of the property,” it will be an instruction so indefinite that the court will not be able to enforce it. The attorneys at ARROWS, a Prague-based law firm, can help you draft instructions so that they are fully clear and enforceable.

Most common questions about instructions

1. Can an instruction be physically impossible or very demanding?

Yes, and in such a case it can be replaced by approximate performance. For example, if you stipulate by instruction that the heir must live in the house at all times, but for health reasons this becomes impossible, the court may cancel the instruction or adapt it. However, this must be properly proven.

2. What is a “sanction instruction”?

It is a combination of an instruction with a sanction—i.e., specifying what happens if the instruction is not complied with and the heir loses the inheritance (e.g., “You must take care of the house, otherwise it will go to your brother.”). In essence, it is an instruction that is also a resolutory condition. This structure is very effective.

3. Can an instruction prevent an heir from selling the company?

Partly yes, but only for a limited period and with good justification. If the instruction is aimed at prohibiting a sale without any time limit, the court will not respect such an instruction. But a restriction on sale for a certain period (e.g., five years) with the reason “so that the company remains in the family and is not fragmented” should stand.

Time stipulations in a will: Time limits for inheritance

The third type of ancillary clause is a time stipulation. Unlike a condition, where it is not certain whether a particular future event will occur, a time stipulation is tied to the passage of time, which will occur with certainty.

A time stipulation allows the testator to provide that an heir will own certain assets only for a certain period, or that the acquisition of the inheritance will occur only after a certain period has elapsed. Although this concerns a period of time that can be relied upon, the legal regime is specific under Czech law.

Examples of time stipulations

Example 1: Suspensive time stipulation

“You will receive my company only three years after my death.” The heir will not be able to acquire the rights immediately, but only after three years have passed.

Example 2: Resolutory time stipulation

“The apartment will be yours for ten years from my death; afterwards it will pass to your daughter.” You own the apartment only for ten years, and then it becomes your daughter’s property.

Example 3: Combined time stipulation

“From my death, you may use the apartment for seven years without paying rent. After seven years, you must either buy it or move out, and the apartment will pass to the foundation.” Here, a time stipulation is combined with an obligation.

In practice, a time stipulation is an interesting structure for cases where you want to:

  • To gain time for the family situation to stabilise and to decide who will take over what.
  • To protect a younger heir who is not yet mature enough to assume responsibility.
  • To transfer the business gradually across generations.
  • To ensure that the assets do not pass to a single person, but move through generations over time.

Important legal nuance: Under the Czech Civil Code, an ancillary clause providing that legal effects will arise only after a certain period has elapsed, or that they will last for a certain period, is given effects similar to a suspensive condition or a resolutory condition.

The heir therefore acquires the assets, but their right is limited in time. Unless agreed otherwise, the rights and obligations arising from such a time limitation also pass to the heir’s successor.

Practical examples for entrepreneurs: Using ancillary clauses

Theoretical principles are important, but let’s look at how this plays out in an entrepreneur’s real life.

Situation 1: Dividing a company between a capable and an incapable descendant

You have a company established as an s.r.o. with assets of CZK 50 million. You have two sons: Jirka (35, works in the company, capable) and Petr (28, a musician, does not know the company). Standard succession would mean they would split the company in half.

This would lead to: Jirka would have to explain business decisions to Petr, which Petr might not accept. The company would not be able to make quick decisions without approval from both. Creditors would lose confidence. The company would lose value.

A solution using ancillary clauses: You will draw up a will with a condition. You will bequeath the company (e.g., a 100% ownership interest) to Jiří on the condition that he must continue the existing business activity and show a positive financial result for at least five consecutive years. 

You will bequeath to Petr 50% of the company’s value in cash, but gradually (for example, CZK 2 million per year for 25 years), or you will leave him other assets (real estate of a similar value) so that his compulsory share is satisfied. At the same time, Jiří will be given an instruction that he must present the accounts to Petr every year and inform him about the company’s situation.

In this way, you save the company and protect both sons—Jiří receives a company he can develop, Petr receives financial compensation, and both are motivated to behave reasonably.

Situation 2: Protecting a family business across generations

You own a construction company that you have built over 40 years. You want your children to take it over after you, but you want to make sure it is not sold to an external investor or at a low price. In this case, you can combine all three types of clauses:

  • Time stipulation: You do not want your children to take over the company immediately after your death. You will specify that they will take over the company only after two years, during which it will be managed by a professional administrator you appoint.
  • Instruction: “You may sell the company only with your brother’s consent, and only for a price that does not fall below 70% of its last determined value."
  • Resolutory condition: “If you sell the company without your brother’s consent, or you sell it below the set price, the company will pass to your brother and you will receive only its market value in cash."

This ensures that your company will not be destroyed and will not be sold off merely for speculation.

Situation 3: Ensuring care for a widow

You will draw up a will stating: “I instruct you to take care of my wife after my death. Each month you will pay her CZK 50,000 from the company’s profits. If you do not do so, part of the company will pass to a foundation supporting seniors."

This ensures that not only will the heirs take care of the widow, but that it will be legally enforceable and controllable.

Most common questions on the practical application of clauses

1. Can I write a will with conditions myself, or is an attorney necessary?

You can write it yourself (in so-called holographic form, i.e., handwritten and signed). However, the risk that it will be invalid or unclear is very high. We strongly recommend having the will drawn up at least by a notary, or consulting the lawyers at ARROWS. This will save you disputes and uncertainty.

2. What if the family situation changes after the will is drawn up?

You can change or revoke a will at any time. However, you should update it every five to ten years, especially if your asset situation, health, or family circumstances change. If you are not sure, it is better to have it in order in advance.

3. How long does it take to prepare a will with conditions?

With a notary, typically 30 to 60 minutes. But the preparation—thinking through the structure and content—may take you weeks or months. That is why it is advisable to work on it with lawyers who have experience. The lawyers at ARROWS can provide comprehensive legal advice, prepare a draft, discuss it with you, and ensure that the will is legally precise and practically workable.

What must not be included in conditions and instructions

The new Czech Civil Code allows ancillary clauses, but this is not absolute freedom. There are strict limits. Let’s look at which conditions courts will reject.

Conditions contrary to public policy

The law clearly states that clauses that are manifestly contrary to public policy or are incomprehensible are disregarded.

What does this mean in practice? For example:

  • Freedom of decision-making about marriage must not be restricted: “You will get the company, but only if you do not get married,” or “The assets are yours only if you marry within a year.” The law expressly prohibits this, as it interferes with personal freedom.
  • It must not be contrary to the law: You cannot make inheritance conditional on the heir breaking the law. For example: “You will get the company if you remain unemployed and receive state benefits.” This runs counter to the public interest.
  • It must not be contrary to good morals: A condition such as “You will get the assets if you socialise with poor people” is contrary to good morals (and is also vague).
Uncertain and vague conditions

If you write a condition that is uncertain or unclear, the court will not be able to enforce it. Examples:

  • “Manage the assets honestly” – What does “honestly” mean? One person may see it as taking profits, another as cautious, risk-free management. The court will not be able to assess it objectively.
  • “Be successful” – By what criteria? The court cannot evaluate this.
  • “Live in the house if you want” – When and under what conditions? The wording is too open to different interpretations.

By contrast, good wording includes:

  • “Manage the assets so that the annual return from profit is not less than 10% of the invested capital"
  • “Live in the house and you must not rent it to third parties"
  • “Work in the company at least 30 hours per week"
Harassing and burdensome conditions

The law provides that clauses that manifestly aim only to harass the heir due to the testator’s evident arbitrariness are disregarded.

Examples that a court would not respect:

  • “You will get the house, but within five years you must invite all your relatives to a celebration every year” – That is obvious arbitrariness.
  • “You will get the company, but you must employ a homeless person whom I currently know” – That is harassment (and moreover likely discriminatory).
  • “You will get the assets, but you have a duty to write me a letter every month even though I am already dead” – That is nonsense.

By contrast, legitimate instructions include:

  • “Take care of the dogs and cats I am leaving behind” – That is natural and stems from caring for living creatures.
  • “Keep the grave in good order” – This is traditionally respected.
  • “Do not leave the company without a serious reason for at least five years” – That makes economic sense.
Unrealistic and impossible conditions

If a condition is objectively impossible (or becomes impossible), the court will not respect it.

Examples:

  • “You will get the company if you fly to the Moon” – In principle it is theoretically possible, but for an individual it is still practically impossible. A court could consider it unrealistic.
  • “You will get the house if you lift it to a height of 10 metres” – That is physically impossible and contrary to the laws of nature.
  • “You will get the assets if you call me every day even though no technology exists that could make it possible” – That is impossible in principle.

Here we see an important practical risk for entrepreneurs. If you write something in your will that becomes impossible over time (e.g., “You will get the company if you increase revenues by 500% under the current market situation without any change in the economy”), the court will cancel the condition and the inheritance will proceed without the condition.

Most common questions on risks and exceptions

1. What if I am not sure whether my condition is acceptable?

Definitely contact the attorneys at ARROWS, a Prague-based law firm. We will be happy to review your condition, support it with legal interpretation, and ensure it is lawful and enforceable under Czech law.

2. How do you tell that a condition or instruction is harassing?

This is assessed by the court in probate proceedings in the Czech Republic. If someone seeks to have the clause declared invalid, the court will assess whether it truly serves only to harass. It is an individual assessment of each case. In these discussions, arguments grounded in the specific facts and context still prevail.

3. Can I ask the court to assess in advance whether my condition is acceptable?

In the Czech Republic, it is not generally possible to apply to the court with a “consultative” action. However, ARROWS attorneys can prepare an expert legal opinion that will form part of your will preparation and that you can then take to a notary.

Most common problems with conditions and instructions

Possible issues

How ARROWS, a Prague-based law firm, can help (office@arws.cz)

An unclear or vague condition that the court will not be able to enforce – the heir will do whatever they like.

We will draft specific, legally enforceable wording for the condition with measurable criteria. We will ensure it is clear and that a court can assess it objectively.

A condition contrary to public policy or good morals – it will be automatically invalid, as if it were not in the will.

We will professionally review the content and purpose of your condition. We have many years of experience with what courts will tolerate and what they will not. We will propose alternative wording that will be lawful under Czech law.

Overly strict or harassing conditions – the court will not respect them and the heir will not have to comply.

We will advise you on what is reasonable and what is excessive. We will help you find a balance between your wishes and the heir’s rights. Often, it is enough to adjust the tone and wording.

A conflict between the condition and the rights of forced heirs – the heir claims their compulsory share and the conditionality becomes a problem.

We design the inheritance structure so that ancillary clauses take into account the rights of forced heirs. We will advise you on how to distribute assets fairly among heirs with minimal conflict.

Uncertainty as to who is entitled to enforce the instruction – the family is divided over who has the right to seek enforcement, and the court ends up resolving the disputes.

We will prepare a clear structure identifying the executor of the will, the estate administrator, and the persons entitled to seek compliance with the instruction. This will ensure disputes can be resolved without lengthy court proceedings.

Protecting your wishes: the executor of the will and the estate administrator

Once an entrepreneur draws up a will with conditions and instructions, another question arises: Who will supervise their fulfilment? This is where the roles of the executor of the will and the estate administrator come into play.

Executor of the will

The executor of the will is a person appointed by the entrepreneur in the will whose task is to oversee that the last will is actually carried out.

The executor has the right to:

  • Check whether heirs and legatees actually comply with the conditions and instructions.
  • Enforce compliance with instructions through the courts if necessary.
  • Be present during the division of assets and verify that it is carried out correctly.
  • Refuse to release the assets if a subsequent condition has not been met.

The executor is usually chosen from among close persons (a spouse, an adult child, a trusted friend) or professionals (a lawyer, a notary, an accountant). For entrepreneurs, it is advisable to choose someone who:

  • Understands the business sector (if it concerns a company).
  • Is independent and has no personal interest in whether the condition is or is not fulfilled.
  • Has authority within the family and the respect of others.
  • Has the time and willingness to devote themselves to the matter.

The executor is a legally significant person – positioned as a mediator between the deceased and the heirs and as the guardian of the testator’s wishes. Without an executor, conditions and instructions are often forgotten or their fulfilment becomes difficult to enforce.

Estate administrator

The estate administrator is a different person from the executor, although both are important. The administrator is responsible for managing the assets during the probate proceedings until they are distributed among the heirs.

The administrator:

  • Takes an inventory of the assets.
  • Collects income (e.g., profits from the company).
  • Pays the testator’s debts.
  • If necessary, runs the company so that time and inactivity do not harm it.

For entrepreneurs, it is critical that while waiting for probate proceedings (which can take months or years), their company can be managed by someone who understands it. Otherwise, its value may decline.

Most common questions on protecting your wishes

1. Do I have to appoint an executor of the will?

It is not mandatory, but it is strongly recommended. Without an executor, conditions and instructions are often not fulfilled because no one has a duty to enforce them. The attorneys at ARROWS, a Prague-based law firm, can advise you on how to find a suitable executor and how to clearly define their powers.

2. How much does an executor cost?

It depends on the arrangement. If it is a family member, they often do it out of love. If it is a professional (a lawyer), they usually charge an hourly rate or a fixed fee. You should agree on the remuneration and the method of payment already in the will.

3. What if the executor does not do their job?
You can apply to the court to have them removed. If their fault is proven, they can be sued for damages. That is why it is important to choose a reliable person or to engage a professional.

Growing disputes and prevention: Why precise wording is key

In recent years, attorneys at ARROWS, a Prague-based law firm, have been dealing with an increasing number of family disputes specifically concerning the terms and instructions in wills. Why?

One reason is that the new Civil Code (effective since 2014) was revolutionary—suddenly it became possible to include conditions in a will. The older generation of entrepreneurs has not fully adopted this yet, and their wills are vague. The second reason is that businesses with conditions are more complex, and disputes arise more often around them when the family wants to divide the assets.

Typical disputes look like this:

Dispute 1: Fulfilment of conditions

A father writes: “You will get the company if you run it honestly and the profit is not lower than CZK 5 million per year.” The son owns the company for three years, but after the coronavirus crisis the profit drops to CZK 3 million. The daughter demands that the company be transferred back to her or sold and the proceeds divided. This is followed by a lengthy court dispute about what a “drop in profit” means and whether it is the son’s fault or the result of external circumstances.

Dispute 2: Imperfect compliance with instructions

A mother writes: “You will get the house if you take care of its maintenance.” The daughter owns the house but neglects the maintenance. The brother (who would inherit the house as a substitute heir if it were a sanction-backed instruction) claims that the instruction was not complied with. A long dispute follows over what “proper maintenance” means.

Dispute 3: Interpretation of vague clauses

An entrepreneur writes: “You will get the company on the condition that you keep it.” The son decides to sell the company (which would be legitimate if it were free disposal). The daughter argues that this breaches the condition because “keep it” means to own it forever. The court then has to decide what the entrepreneur meant.

All of these disputes would be unnecessary if the condition had been clearly drafted from the outset, legally precise, and understood in the same way by everyone.

Most common questions about disputes in practice

1. What if the heir and I agree orally that we will ignore the condition?

Formally, ancillary clauses in a will are legally binding—you cannot simply “ignore” them. However, if all interested parties (especially the other heirs and any substitute heirs) agree that the condition will not be applied, this can be done by an agreement signed by everyone, which is advisable to have recorded by a notary. Still, it is better to agree at the beginning so that the matter does not have to be dealt with retroactively.

2. If a condition was not met, does it always mean that the heir loses the inheritance?

No, it depends on the type of clause. With a resolutory condition, yes. With a suspensive condition, the heir has not yet acquired the asset, so there is no termination; rather, the right never arises. With an instruction, if it is not linked to a sanction (a resolutory condition), non-compliance more often leads to the possibility of enforcing performance of the instruction, not to an automatic loss of the inheritance. An alternative or compromise can often be agreed.

3. How long does a court dispute take if a condition is being litigated?

In the Czech Republic, it can commonly take 2 to 5 years (first instance, appeal, and potentially an extraordinary appeal on points of law). This entails enormous costs, freezing of assets, and emotional strain. That is precisely why it is safer to have everything clear in advance. The attorneys at ARROWS, a Prague-based law firm, can prepare an opinion right at the outset that protects you from disputes.

Final summary

Conditions in an entrepreneur’s will are not a simple matter, but they are essential if you want your assets—especially your company—to be passed on to the next generation in the way you intend. The new Civil Code allows this—but only if you know how to do it correctly.

Key takeaways:

  • Ancillary clauses (conditions, instructions, time stipulations) are legal and enforceable under the new law—unlike under the old law, where they were ignored. This is an opportunity, but one you must approach thoughtfully.
  • A condition must be clear, measurable, and lawful—vague or harassing conditions will be invalidated as if they were not in the will. This will not benefit you, because the inheritance will then be dealt with under statutory rules, which is often not what you want.
  • Without an executor, conditions and instructions are often not complied with—therefore appoint a person who will have the authority and duty to supervise compliance.
  • Disputes over vague conditions are very lengthy and costly—that is why it is better to take the matter seriously now and invest in proper wording.
  • Forced heirs (your descendants) will have rights regardless of what you write in the will—you must take this into account and provide for them fairly, otherwise they will claim their mandatory share.

If you want your last will to be truly carried out and to avoid disputes and the freezing of the company, the safest approach is to have the will prepared and verified by a notary.

The attorneys at ARROWS, a Prague-based law firm, can provide legal advice, preparation and review of wills, drafting of expert legal opinions, and representation in any disputes. Contact us at office@arws.cz – we will be happy to assist you.

Notice: The information contained in this article is of a general informational nature only and is intended for basic guidance on the topic. Although we take the utmost care to ensure accuracy, legal regulations and their interpretation evolve over time. To verify the current wording of the regulations and their application to your specific situation, it is therefore necessary to contact ARROWS advokátní kancelář directly (office@arws.cz). We accept no liability for any damages or complications arising from the independent use of the information in this article without our prior individual legal consultation and expert assessment. Each case requires a tailored solution, so please do not hesitate to contact us.

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