The heirs of a deceased person's estate can manage the estate together, which is known as joint administration of the estate. In this case, the heirs must jointly handle the estate's affairs and make decisions by mutual agreement. There should also be an agreement among the heirs regarding the distribution of the inheritance. If there is a difficult heir, it may be impossible to distribute the estate. In this case, each heir's legal protection is to apply for an administrator and distributor for the estate, who will take control of the estate and prepare it for division.
Decisions must be made unanimously
Often, heirs of an estate believe that decisions within the estate can be made according to what the majority of heirs support. However, decisions within an estate cannot be made by majority vote; unanimous agreement of the heirs is always required.
If the heirs cannot implement joint administration and divide the estate amicably, for example, due to a difficult heir, then liquidator There is no solution to this situation.
The right of a shareholder in an estate to apply for an estate administrator.
Each heir or beneficiary of an estate has an independent right to apply to the District Court to appoint an estate administrator. Any heir or beneficiary can apply for an estate administrator and partitioner individually, irrespective of the willingness of other heirs or beneficiaries. Based on the application, the District Court will appoint an estate administrator and partitioner for the estate. The administration of the estate will then be taken over by the estate administrator, who will prepare the estate for partition and subsequently distribute the assets among the heirs or beneficiaries. The estate administrator will consult all heirs or beneficiaries of the estate but will independently manage the estate's administration. An estate administrator and partitioner is typically a lawyer specialising in inheritance law.
Transfer of the deceased's estate to the administration and distribution of the estate administrator
If the management of the deceased's estate by the joint administration of the heirs proves impossible, Each heir has an independent right to apply to the District Court for the appointment of an estate administrator or estate divider.. Typically, he is a lawyer specialising in inheritance law.
After a probate administrator or partitioner has been appointed, the heirs must transfer the estate to the management of the probate administrator and/or partitioner appointed by the district court. Upon receiving their appointment, the probate administrator has the right and the duty to manage the estate's affairs, carry out legal transactions on its behalf, and divide the estate.
The role of the estate administrator in an estate settlement
The estate administrator and divider shall arrange the necessary number of estate settlement and inheritance division meetings, where the shareholders have the opportunity to present their claims concerning the affairs of the estate and the inheritance, as well as to negotiate among themselves regarding any disagreements they may have.
The estate distributor and liquidator have a duty to fairly inform the heirs sharing the estate of their rights and obligations, and to strive to reach a settlement that satisfies all parties. If, despite attempts, no settlement is reached, the estate distributor must carry out a division of the estate among the heirs in accordance with the provisions of the law. Heirs have the right to contest the division decision made by the estate distributor by filing a lawsuit against the other heirs in the district court within 6 months of the division decision being made.
Executor and administrator fees
An estate liquidator and an estate distributor are entitled to reasonable remuneration for their work and reimbursement for expenses incurred. These are paid from the assets of the estate. The cost of the estate distributor's services is determined by the time spent on the tasks. The more disagreements there are among the heirs and which are referred to the estate distributor for resolution, the higher the compensation paid to the estate distributor will be. It is therefore recommended that the heirs endeavour to agree among themselves on the less financially significant matters, such as the division of movable property. Ultimately, the estate distributor will also decide on the status of minor matters.
Estate distribution agreement and distribution deed
If the heirs reach an agreement or partial agreement amongst themselves on the division of the inheritance in the distribution proceedings, the estate administrator shall confirm the agreement. The agreement shall be appended to the distribution deed drawn up by the estate administrator.
Insofar as the heirs in an estate cannot reach an agreement, the estate administrator shall make a distribution decision independently and draw up a deed of distribution for the total estate. They alone shall sign the deed of distribution. The heirs may, if they wish, indicate their acceptance of the distribution with their own signatures and commit not to dispute the distribution, whereupon the distribution shall immediately become legally binding. If this is not done, the distribution shall become legally binding after a 6-month period for disputes has elapsed, provided that none of the heirs have, within the dispute period, initiated legal proceedings to challenge the distribution in the District Court against all other heirs.
Contact a lawyer
Understanding your rights in inheritance matters can be tricky. It is advisable to contact a qualified lawyer if there is a difficult shareholder in your estate.
Article drafted by the Advocate Tuula Rainto, Amos Law Firm. You can always call him free of charge on 010 299 5090. You can consult our price list Here.
The article was updated on 02.01.2024.
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