If there is disagreement regarding the administration or division of an estate, you can apply for a court-appointed estate administrator.
Disputed estate
Friction may arise between the heirs of a deceased person regarding the management of affairs and the division of the estate. Disagreements may arise concerning the valuation of assets and the distribution of inheritance. Even events during the deceased's lifetime, which are not of significant importance to the settlement of the estate itself, or on inheritance may affect the worsening of relations between the estate heirs. When estate heirs disagree, they find cooperation impossible. The estate must then resort to an external, objective party for the settlement and division, who is called an estate settler and divider. An estate settler and divider is applied for at the district court.
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.
Article updated 09/09/2024.
Article drafted by the Advocate Tuula Rainto, Law firm Amos. He acts as an estate administrator and divider in several estates. You can always call him for a free call, tel. 010 299 5090. You can familiarise yourself with our price list Here.
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