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When a person passes away, their estate will be inherited by those entitled to it in accordance with the applicable legal system. One of the systems used in Indonesia, particularly for non-Muslim citizens, is the Western civil inheritance law as regulated in the Indonesian Civil Code (KUHPer). This system determines the order of priority for heirs based on the closeness of family relationships, which is referred to as the group-based inheritance system.

In the Indonesian Civil Code (KUHPer), heirs are divided into four main groups. Each group is entitled to inherit only if the group above it does not exist. This order determines who has the first right to the inheritance and serves as the basis for the transfer of ownership of the deceased's assets, such as land, buildings, and other movable property.

Group I: Children and the Surviving Spouse

The first group in the inheritance system according to the Civil Code (KUHPer) consists of the children and the surviving spouse. They are given the highest priority to receive the entire inheritance if they are still present. This system emphasizes a strong principle of family, where the nuclear family is the primary priority in the distribution of the estate.

Children, whether male or female, receive an equal share of the inheritance without any distinction. Meanwhile, the surviving spouse receives a share equal to that of one child. This means that if there are two children and a surviving spouse, the estate will be divided into three equal parts. However, this is not absolute, as the lawful heirs may agree among themselves on a different distribution arrangement.

In practice, the transfer of rights from the deceased to the heirs requires a Certificate of Inheritance as the legal basis. Once the SKW is obtained, the heirs are also required to register the transfer of ownership for the inherited assets, such as land certificates or vehicles, to legally transfer ownership into their names.

Regarding tax obligations, heirs in this group are subject to the Land and Building Rights Acquisition Duty under a special scheme for inheritance. In some cases, there may be a tax reduction or exemption depending on the value of the inheritance or the status of the heirs. In addition, if there are inherited assets that generate income or are related to a business, the heirs must also take into account any potential income tax (PPh) obligations that may arise.

Group II: Parents and Siblings

If a deceased person has neither children nor a surviving spouse, the right to inherit passes to the parents and siblings. This group only applies once it has been confirmed that there are no heirs from the first group. In this case, the immediate family in the direct ascending line (parents) and the collateral line (siblings) become the priority recipients of the inheritance.

The application of inheritance for this group requires greater precision, particularly in proving family relationships. This becomes more complicated if the parents have passed away and only siblings remain. Proof is usually provided through documents such as birth certificates, family cards, or notarial deeds that officially certify the status of the heirs.

For the transfer of rights process, the heirs are still required to obtain a Certificate of Inheritance (SKW) as the main requirement. In addition, the transfer of ownership registration for assets such as land, buildings, or the deceased’s bank accounts must still be carried out through the authorized institutions or agencies, such as the land office or the bank.

Tax obligations for this group are generally similar to those of the first group, including the payment of the Land and Building Rights Acquisition Duty. However, in practice, the administrative burden can be greater, as it requires additional legal documents to strengthen the claim as legitimate heirs, especially if the deceased has siblings from more than one lineage (for example, half-siblings).

Group III: Relatives in the More Distant Ascending Line

The third group in the inheritance system according to the Civil Code (KUHPer) includes grandparents, great-grandparents, and other ancestors of the deceased. They will only receive an inheritance if there are no heirs from the first and second groups. Since they belong to a more distant family line, their inheritance rights are considered supplementary or residual, covering what is not inherited by the previous groups.

The inheritance received by this group is residual, meaning they only inherit if there are no recipients with a higher hierarchical right. As a result, the portion they receive is usually smaller and, in some cases, limited only to the remaining assets after all of the deceased’s obligations have been settled.

From an administrative standpoint, the transfer of rights to the third group tends to be more complex. Valid proof of lineage is required, such as birth certificates spanning several generations upward or other supporting documents. This proof is essential to demonstrate that they indeed have a direct blood relationship with the deceased, even though they are in a more distant line of descent.

In terms of taxation and other legal obligations, heirs in this group are still subject to the Land and Building Rights Acquisition Duty as well as applicable legalization fees. A common challenge is the potential for disputes from other parties claiming to be heirs based on a stronger or closer lineage. Therefore, the validity of documents and proof of family relationship becomes a crucial aspect that must not be overlooked.

Group IV: More Distant Collateral Relatives

The fourth group in the inheritance system under the Civil Code (KUHPer) consists of more distant collateral relatives, such as uncles, aunts, cousins, or other relatives not included in the previous three groups. This group only gains the right to inherit if there are absolutely no heirs from the first, second, or third groups.

Because of the more distant blood relationship, heirs in this group often face administrative challenges in proving their inheritance rights. The proof process is not sufficient with a standard Certificate of Inheritance alone but requires stronger and more comprehensive documentation to establish that they truly have a blood relationship with the deceased.

In many cases, the transfer of rights by the fourth group must go through a court decision as a substitute for the Certificate of Inheritance. This is due to the absence of closer heirs and the potential for claims from other parties. This process not only takes more time but also involves higher legal and administrative costs.

With regard to tax obligations, this group is still subject to Land and Building Rights Acquisition Duty and legalization fees, just like the other groups. However, due to the complexity of proof and the more complicated procedures, the inheritance settlement process for the fourth group can be more burdensome in terms of time, cost, and the potential legal conflicts that may arise in the future.

Then, How Can a Nephew Be Entitled to the Inheritance of an Uncle Who Has No Children?

"A nephew can be entitled to inherit from his uncle if the deceased (uncle) has no children, wife, parents, or surviving siblings. Under the inheritance system of the Indonesian Civil Code (KUHPer), nephews are included in the fourth group, namely heirs from more distant collateral lines. A nephew’s right to inherit only arises once there are no heirs from the first through third groups."

However, in order to inherit, the nephew must be able to legally prove his family relationship with the deceased. Since a nephew is in a more distant genealogical position, a Certificate of Inheritance alone is often not sufficient. In many cases, a court ruling is required to officially declare him a lawful heir, especially if complete family documents are unavailable or there is a potential dispute from other parties.

Once his inheritance rights are legally recognized, the nephew can proceed with transferring the ownership of inherited assets, such as land or buildings, into his name. In this process, he is still subject to administrative and fiscal obligations, such as paying the Land and Building Rights Acquisition Duty (BPHTB) and completing the legalization of other required documents.

Conclusion

Understanding the structure of the groups of heirs is very important before starting the process of distributing an estate. This knowledge helps you identify who is entitled to receive the inheritance under the applicable legal provisions and how the order of priority is determined by law.

Errors in identifying the group of heirs can have significant consequences, ranging from family conflicts to potential financial losses that could have been avoided. Therefore, it is important to trace and verify the legal position of each party involved before proceeding further with the inheritance administration process.

If you are currently at this stage or wish to plan an orderly distribution of inheritance, it is advisable to consult a trusted legal professional. With professional assistance, you can face this process with greater peace of mind and ensure that all rights and obligations are carried out in accordance with the law.