After the estate inventory has been done, the property can be divided to the heirs. However, there is no time limit for the division. It is also possible in Finland that, the heirs can agree to only divide a part of the estate or not to divide the estate at all.
The estate does not need to be divided if there is only one heir. The property is then deemed to have been inherited by the heir at the time of the decedent's death.
Who will inherit the property left behind?
The property is divided among the heirs of the deceased's estate. The deceased's estate and the heirs are stipulated in the Deed of Inheritance, also referred to as the estate inventory. If the decedent did not leave a will, the statutory order of inheritance determines the portions of the inheritance allocated to each heir.
The statutory order of inheritance in Finland:
Children. If the child is deceased, the inheritance is passed on to the decedent's grandchildren.
Surviving spouse. The surviving spouse inherits the deceased spouse’s estate, if the surviving spouse was married to the decedent and the decedent had no direct heirs, i.e. children or grandchildren.
Mother and father. If the father and mother are dead, the inheritance is passed on to the deceased's siblings and then on to their children.
Grandparents. If the grandparents are deceased, the inheritance is passed on to the decedent's uncles and aunts. Following them, the inheritance goes to the Finnish state. The decedent's cousins are not considered heirs.
In Finland, the distribution of inheritance is governed by the Inheritance and Gift Act (Perintö- ja lahjaverolaki). Here's a general overview of the rules: **When someone dies, their estate is distributed in the following order:** 1. **Legitimate Heirs (Laglottare):** These are the deceased's closest relatives, primarily their descendants (children, grandchildren, etc.) and their surviving spouse. * **Children:** If there are children, they are entitled to inherit. * **Spouse:** The surviving spouse has a right to inherit, usually after the deceased's children. They have a right to remain in the family home under certain conditions. * **Parents:** If there are no descendants, the deceased's parents inherit. * **Siblings:** If there are no descendants or parents, the deceased's siblings inherit. * **Other Relatives:** If none of the above survive, inheritance passes to more distant relatives according to a specific order. 2. **Compulsory Share (Lakiosa):** Certain heirs, specifically the deceased's children, have a right to a compulsory share of the estate. This means they are entitled to at least half of what they would have inherited if there were no will (or had there been no other distributions). If a will or other disposition reduces their share below this, they can claim the difference. 3. **Testamentary Heirs (Testamentinsaaja):** A person can make a will (testamentti) to specify who should inherit their property. This can include individuals, organisations, or charities. However, testamentary dispositions cannot infringe upon the compulsory share rights of legitimate heirs. **The Process of Distribution:** * **Estate Inventory (Kuolinpesänselvitys):** After a death, an estate inventory must be drawn up. This lists all the deceased's assets and debts. * **Settlement of Debts:** The deceased's debts are paid from the estate before any distribution to heirs. * **Distribution Agreement (Perinnönjakosopimus) or Court Distribution (Perinnönjako tuomioistuimen kautta):** * **Agreement:** If all heirs agree, they can draw up a distribution agreement, detailing how the assets will be divided. This agreement is usually confirmed by a notary (maistraatti). * **Court:** If the heirs cannot agree, a distribution can be carried out by a court-appointed executor. * **Inheritance Tax (Perintövero):** Inherited assets are subject to inheritance tax, which is levied by the Finnish Tax Administration (Verohallinto). The tax rate depends on the value of the inheritance and the relationship between the deceased and the heir. Closer relatives generally pay lower tax rates. **Key Points:** * **Intestacy:** If there is no will, the estate is distributed according to the legal order of succession. * **Will:** A will allows individuals to have more control over how their assets are distributed, but it must respect the compulsory share of legitimate heirs. * **Marital Property:** The rules regarding marital property (avoliitto or avioliitto) also affect the distribution of inheritance, particularly concerning the surviving spouse's rights. It's important to note that Finnish inheritance law can be complex, and specific situations may have unique considerations. For precise legal advice tailored to a particular case, it is always recommended to consult with a Finnish lawyer or legal professional.
The property that can be distributed comprises the property recorded in the Deed of Inventory, also known as the estate inventory.
If the deceased was married, the spouses' property must be divided, i.e. partitioned, before the deceased spouse's estate can be distributed. This is the so-called matrimonial right, and it must be settled before the distribution of the inheritance. However, the property does not have to be divided at all if the spouses had a prenuptial agreement.
Prepare a deed of partition and a deed of distribution of estate
The division of matrimonial property must be documented in writing, and it is called a deed of partition.
After that you must be drafted the document of the death estate's distribution. It is called The deed of distribution.
Both the division of matrimonial property and the distribution of the estate can, however, be included in one deed. The Finnish Tax Administration must receive photocopies of the aforementioned documents.
Legal assistance
Most people require legal assistance for drawing up the inventory deed, helping with the apportionment of property, and dividing the estate.
Amoslaki can assist you with these matters, and if necessary, documents will be drafted bilingually. You are welcome to contact us at any time, free of charge, for a consultation.
This article was written by Tuula Rainto, Attorney-at-Law. e-mail: [email protected] and phone: +358 45 1115577
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