Surviving Spouse's Rights – Marital Property, Right of Possession and Pension

The surviving spouse's position in inheritance

The surviving spouse's position in Finnish inheritance law is multifaceted. It depends on whether the deceased has direct heirs, whether there is a prenuptial agreement and whether there is a will.

Surviving spouse and direct heirs

If the deceased has children or grandchildren (direct heirs):

• The surviving spouse does not inherit the deceased – the children inherit
• The surviving spouse does, however, have marital property rights (division of property)
• The surviving spouse has a right of possession to the shared home
• The deceased may have bequeathed property to the surviving spouse by will

Surviving spouse without direct heirs

If the deceased has no children or grandchildren:

• The surviving spouse inherits all property
• The deceased's parents and siblings have a secondary right of inheritance – they inherit only after the surviving spouse's death
• The surviving spouse may freely use the inherited property during their lifetime
• However, the surviving spouse may not bequeath the secondary heirs' share by will

Will and the surviving spouse

The deceased may have altered the situation by will:

• A will can leave property to the surviving spouse
• The children's forced shares must still be observed – the forced share is half of the statutory inheritance share
• A right-of-use will is common: the surviving spouse receives the right of use, the children receive ownership
• A will can either weaken or strengthen the surviving spouse's position

Marital property and division

Marital property right is one of the surviving spouse's most important rights after death.

What marital property right means

• Spouses have the right to each other's property when the marriage ends (death or divorce)
• Property subject to marital property rights is divided equally in the division of property
• Covers all property that is not excluded by a prenuptial agreement

Division of property after death

The division is carried out between the surviving spouse and the estate:

1. The property of both spouses subject to marital property rights is totalled
2. Debts are deducted
3. The net property is divided in two
4. The party with less property receives an equalisation payment from the party with more

Equalisation privilege

The surviving spouse has a special right that the estate does not have:

• If the surviving spouse's property is larger than the deceased's, the surviving spouse need not surrender an equalisation payment to the estate
• This is a significant advantage – it protects the surviving spouse's wealth
• The estate must always surrender an equalisation payment to the surviving spouse if the surviving spouse's property is smaller

Prenuptial agreement

A prenuptial agreement can change the situation:

• A complete prenuptial agreement removes marital property rights entirely
• A partial prenuptial agreement limits marital property rights to certain property
• A prenuptial agreement can be one-sided
• Despite a prenuptial agreement, the right of possession to the home is preserved

Right of possession to the home

The surviving spouse's right of possession is a strong protection that secures the surviving spouse's housing.

Content of the right of possession

The surviving spouse has the right to retain undivided possession of:

• The dwelling used as the spouses' shared home (owned or rented)
• Ordinary household effects (furniture, appliances, tableware)
• This right is statutory – it does not need to be specifically claimed

Strength of the right of possession

• Direct heirs cannot demand division during the surviving spouse's lifetime without the surviving spouse's consent
• The right of possession is lifelong
• The right of possession takes precedence over the direct heirs' inheritance rights
• A beneficiary under a will must also respect the right of possession

Limitations of the right of possession

• The surviving spouse cannot sell or pledge the dwelling without the shareholders' consent
• The surviving spouse must maintain the property in good condition
• The right of possession applies only to the dwelling that was the shared home at the time of death
• If the surviving spouse moves away permanently, the right of possession may lapse

Value of the right of possession for tax purposes

• The right of possession reduces the taxable value of the inheritance
• An age-based multiplier for the surviving spouse is used in taxation
• The right of possession reduces the children's inheritance tax burden
• The surviving spouse does not pay inheritance tax on the right of possession

Survivor's pension

A survivor's pension is financial protection that compensates for part of the lost spousal income.

Kela's survivor's pension (national pension)

• Available to surviving spouses under 65 who have or have had a shared child with the deceased
• An initial pension (6 months) is paid to all eligible applicants
• A continuing pension depends on the surviving spouse's own income
• A childless surviving spouse must have been 50 years old at the time the marriage was entered into

Earnings-related survivor's pension

• Based on the pension earned or being paid to the deceased
• The survivor's pension is at most half of the deceased's pension
• A deduction is made if the surviving spouse has their own pension
• The pension may be reviewed after 6 months (based on the surviving spouse's own income)

Conditions for the survivor's pension

• The marriage was entered into before the deceased turned 65
• The marriage lasted at least 5 years (or a shared child exists)
• The surviving spouse is under 65 at the time of the deceased's death (Kela) or under 50 at the time the marriage was entered into (earnings-related)
• A registered partnership is treated equally with marriage

Child's pension

Children under 18 are entitled to a child's pension:

• Kela's child's pension
• Earnings-related child's pension
• Both are paid concurrently
• A student may receive a pension until age 21 (Kela)

Children from a previous marriage

Blended family situations raise additional questions about the surviving spouse's rights.

The deceased's children from a previous marriage

• Children inherit their parent – including children from a previous marriage
• The surviving spouse's right of possession takes precedence over the children's inheritance rights
• Children cannot demand division of the estate during the surviving spouse's lifetime (right of possession)
• In practice, this can cause tensions

The surviving spouse's own children from a previous marriage

• The surviving spouse's own children from a previous marriage do not inherit the deceased (unless by will)
• They are not shareholders of the estate
• The surviving spouse's own property will in due course pass to the surviving spouse's own heirs

Significance of a will in blended families

• In blended families, a will is particularly important
• Without a will, the spouse's children from a previous marriage receive nothing
• Drawing up a will protects all parties
• A right-of-use will is an effective solution

Cohabiting partner's position

The cohabiting partner's position is significantly weaker than that of a married surviving spouse.

A cohabiting partner does not inherit

• A cohabiting partner has no inheritance right without a will
• No marital property rights and no division of property
• No right of possession to the shared home
• No right to a survivor's pension (as a general rule)

Protection under the Cohabitation Act

The Cohabitation Act (26/2011) provides some rights:

• Applies to those who have lived in a shared household for more than 5 years or who are parents of a shared child
• Right to compensation if one party has contributed to the other's property
• Compensation is not automatic – it must be claimed
• The compensation claim must be presented within 6 months of the dissolution of the relationship

Protecting a cohabiting partner

A cohabiting partner can protect their position through:

• A will – the deceased can bequeath property to the cohabiting partner
• Joint ownership – the shared dwelling in both names
• Life insurance – designating the beneficiary
• Mutual continuing power of attorney – does not replace inheritance rights but secures care matters

Registered partnership

Registered partnerships entered into before the amendment of the Marriage Act (2017) are treated equally with marriages:

• Same inheritance rights as a married spouse
• Same marital property rights and division
• Same right of possession
• Same right to a survivor's pension

Practical steps

The surviving spouse must attend to several matters after the death of a spouse.

First weeks

1. Notify Kela and the pension institution of the death
2. Determine entitlement to a survivor's pension
3. Check access to the joint account – the bank may restrict access
4. Determine the deceased's insurance policies and life insurance

In connection with the estate inventory

1. Ensure that marital property rights and the right of possession are recorded in the estate inventory deed
2. Invoke the equalisation privilege if it is advantageous
3. Determine the effect of any will on the surviving spouse's position
4. Obtain legal advice if necessary

In the long term

1. Division of property between the surviving spouse and the estate
2. Exercising or relinquishing the right of possession
3. Reorganising assets and planning for the future
4. Reviewing one's own will

Read more about wills and continuing powers of attorney.

Frequently asked questions

Does the surviving spouse inherit their partner?

Only if the deceased has no children. Otherwise, the surviving spouse has marital property rights and the right of possession, but no inheritance rights.

Can the surviving spouse continue living in the shared home?

Yes. The surviving spouse's right of possession secures lifelong housing, and the children cannot demand division.

Does a cohabiting partner receive an inheritance?

Not without a will. A cohabiting partner has no statutory inheritance right, marital property rights or right of possession.

How is a survivor's pension applied for?

Kela's survivor's pension is applied for from Kela and the earnings-related survivor's pension from the deceased's earnings-related pension institution. Apply as soon as possible.