Requesting an Extension for Estate Inventory
· Updated · 2 min read
When an extension is needed
According to Chapter 20, Section 1 of the Code of Inheritance, the estate inventory must be conducted within three months of the deceased's death. Sometimes, however, this deadline is not sufficient. An extension may be needed if the estate is particularly large or complex, the deceased has property abroad, shareholders are difficult to reach, business asset valuation requires time, or obtaining required documents from authorities is delayed. It is advisable to apply for an extension in good time, preferably as soon as it becomes apparent that the deadline cannot be met.
Submitting the application
The extension application is submitted to the Tax Administration in writing before the original three-month deadline expires. The application states the deceased's name, personal identity code, date of death, and the applicant's details. The application includes the grounds for needing the extension and the desired new deadline for the estate inventory. The application can be submitted electronically through MyTax (OmaVero) or on paper form 3626. If the last day falls on a weekend or public holiday, the application must be made by the preceding working day. Submit the application well in advance. Note that even if the estate inventory is extended, the deed must still be filed with the Tax Administration within one month of the inventory; an extension for filing the deed can be requested separately within that month.
Acceptable grounds
The Tax Administration evaluates the grounds for the extension application on a case-by-case basis. Acceptable grounds include the estate's scope and complexity, international special issues, delays in obtaining documents, shareholders being unreachable, and personal impediments of the estate notifier such as illness. Valuation of business assets or unlisted shares may require additional time. On the other hand, mere postponement without a concrete obstacle is usually not sufficient grounds. The application must clearly describe what specifically prevents the estate inventory from being conducted within the deadline.
Consequences of exceeding the deadline
A deed filed late leads to a late-filing fee (EUR 50 for an individual, if at most 60 days late) or a tax surcharge under Sections 36 and 36 a of the Inheritance and Gift Tax Act – usually 10 percent of the increased tax (also 2, 5 or 15–50 percent depending on the neglect), but at least EUR 75. Under Chapter 21, Section 2 of the Code of Inheritance, the shareholder responsible for the estate inventory is also personally liable for the deceased's debts if the inventory is not conducted within the deadline, unless he or she shows that no loss was caused to creditors. The Tax Administration may conduct inheritance taxation by estimation, in which case the taxation is not based on actual information and may be unfavourable for the shareholders. Even a late estate inventory is always a better option than not conducting one at all.
Frequently asked questions
How do you request an extension for the estate inventory?
An extension is requested from the Tax Administration with a written application before the original three-month deadline expires. The application can be made in MyTax (OmaVero) or on form 3626 (also used as a cover sheet for a free-form application). The application must state the deceased's details, date of death, grounds for needing the extension, and the desired new deadline. The application can be submitted by the estate notifier, a shareholder, or an estate administrator. The Tax Administration processes the application and issues a decision granting or rejecting the extension. An extension is granted only for a justified reason.
What are acceptable grounds for an extension?
Acceptable grounds for requesting an extension include a large or complex estate, property abroad requiring special investigations, difficulty in reaching shareholders, complexity in valuing business assets, illness of the estate notifier or other personal impediment, and delays in receiving required documents from authorities. The Tax Administration evaluates the grounds on a case-by-case basis. An extension is generally not granted without a concrete reason, and mere negligence or procrastination is not an acceptable reason.
How much extra time can be granted for the estate inventory?
The Tax Administration can grant additional time for the estate inventory on a case-by-case basis. No fixed maximum length has been published, so it is advisable to propose a realistic new deadline in the application. An extension can also be requested again if previously granted time proves insufficient. However, the application must justify why the estate inventory could not be completed within the already granted extension.
What happens if the estate inventory is late without an extension?
If the estate inventory is late without a granted extension, and the deed is filed late, the Tax Administration imposes either a late-filing fee or a tax surcharge under Sections 36–36 b of the Inheritance and Gift Tax Act. The late-filing fee (EUR 50 for an individual) applies when the deed is at most 60 days late; beyond that a tax surcharge is imposed, usually 10 percent of the increased tax (also 2 or 5 percent, or 15–50 percent, depending on the neglect), but at least EUR 75. Additionally, under Chapter 21, Section 2 of the Code of Inheritance, the shareholder responsible for the estate inventory is personally liable for the deceased's debts if he or she fails to have the inventory conducted within the deadline, unless he or she shows that the failure caused no loss to creditors. The Tax Administration may also conduct inheritance taxation by estimation, in which case the taxation may not reflect the actual situation.
Read also
The estate inventory must be conducted within three months of the deceased's death. Learn about calculating the deadline, consequences, and requesting an extension.
What documents are needed for an estate inventory? A comprehensive list: family records, civil registry certificates, will, bank statements, and property documents.
How much does an estate inventory cost? Free if done yourself, EUR 500–2,000 with a lawyer. Factors affecting price and saving tips.