• The distribution of an estate can be carried out by contract or by delivery.
• In a contractual division, the partners agree among themselves on the distribution of the inheritance.
• An agreement on the distribution of inheritance contains the shares of the inheritance, the assets to be distributed and the details of the heirs.
• In the case of a distribution, the executor distributes the estate without the agreement of the partners and draws up a deed of distribution.
• The agreement must be in writing, signed and witnessed by two witnesses.

What is an inheritance contract?

The distribution of an estate is made either by contract or by delivery. In a contractual distribution, the partners in the estate and the beneficiaries of the will agree between themselves on the distribution of the estate. In this case, the distribution will be made inheritance distribution agreement the succession book. A distribution agreement is an agreement on how the inheritance will be distributed. The distribution agreement, known as the deed of distribution, lists the heir and the persons who are to distribute the inheritance. In addition, the distribution deed or agreement must indicate each heir's share of the inheritance or other basis for inheritance, such as a will. The distribution agreement must also indicate the property to be distributed. Finally, the distribution book lists for each person what he or she will inherit from the estate. The distribution agreement must be signed and dated. It is then authenticated by two witnesses who are unobstructed.

If the estate cannot be divided by the partners of the estate and they cannot agree on the division of the estate, the court-appointed administrator must carry out the division of the estate. All the partners have an independent right to demand the appointment of the administrator. The administrator must divide the estate not only in disputed estates, but also in estates where one of the partners has had his share of the estate seized. Exceptions to this rule can only be made with the consent of the creditor. The administrator is also used in estates where one of the partners is an incapacitated person. The distribution made by the administrator is called a settlement distribution. In the case of a settlement division, the distribution must also be properly documented. This is called a deed of distribution. In the case of a distribution, the distributor draws up and signs the distribution deed. No other signatures or witnesses are required for the deed of distribution in a distribution.

When should the agreement on the distribution of inheritance be concluded?

Once the estate has been duly settled, the distribution of the estate can take place. Each member of the estate has the right to demand the distribution. Whether the inheritance is divided by contract or by distribution, the relevant document must always be drawn up.

If all the partners agree on the division of the estate, it is possible to divide the inheritance by agreement. Contractual division is the most common way of dividing an inheritance. Contractual distribution is subject to freedom of contract. In practice, this means that the parties to the succession can distribute the estate in a way they agree. Even the law does not restrict the freedom of the parties to agree. This freedom of contract allows the partners to deviate from the order of succession, the amount of the inheritance and even the will of the deceased. However, the division of the contract requires the full agreement of the partners. There must be agreement on every detail of the division of the estate - otherwise it will not work. In a contractual division, the document for the division of the estate is called the agreement on the division of the estate. As the name suggests, an agreement on how the inheritance will be divided between the heirs. It is up to the parties to draw up the distribution agreement.

A distribution agreement can also be partial, i.e. only part of the property is distributed and the other part remains undistributed. The document is then called partial partition and division of the estate.

Instead of a contractual distribution, it is possible to distribute the inheritance by delivery. In a distribution by delivery, the executor is appointed to carry out the distribution of the estate. The succession is divided by way of a delivery order if:

•     the partners in the estate cannot agree on the distribution,
•     one of the partners requests the appointment of a liquidator, or
•     a partner's share has been seized from the estate.

However, if the creditor whose right is affected by the distribution agrees to the distribution being made in the manner agreed by the parties, the distribution may in this situation be made by way of a contractual distribution instead of the distribution under the main rule. An appropriate document must also be drawn up for the distribution. This is called a deed of allotment. In the case of a distribution by delivery, it is the responsibility of the administrator to draw up the distribution deed.

When does the succession agreement become final?

The distribution agreement becomes final when it has been signed by all parties and witnesses and the 6-month deadline has passed. If a sentence is added to the distribution agreement: ”We undertake not to object in any way to this distribution and we accept it”, the distribution agreement becomes effective immediately and the inheritance can be distributed immediately.

What information is included in an inheritance contract?

The distribution agreement must contain at least the following information:

• Name and surname of the deceased
• Names and surnames of heirs
• Information on whether a possible partition has been made
• List of the deceased's remaining assets
• Information on whether all known debts have been paid
• Information on how the inheritance will be distributed to each heir
• Date and signature
• Signatures of witnesses

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. 

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[avatar user=”amoslaki” size=”352″ align=”left” link=”www.amoslaki.fi/ajanvarauskalenteri” target=”_blank”]Attorney Tuula Rainto, Amos Law Office. You can always call her free of charge, tel. 010 299 5090[/avatar]