Estate of the Deceased
An estate of the deceased (kuolinpesä) is automatically created when a person dies. It encompasses all of the deceased's property and all debts at the time of death. The estate is an independent legal entity that can own property, enter into contracts, and be a party in legal proceedings. The estate's administration continues until the estate inventory is completed and the inheritance is distributed.
Shareholders
The shareholders of the estate under law are:
- Heirs — children, grandchildren, or other statutory heirs under the Code of Inheritance
- Surviving spouse — by virtue of marital right, even if not an heir
- Beneficiaries under a general will — persons to whom the deceased has bequeathed all property or a fraction thereof
The circle of shareholders is confirmed through the deceased's genealogical records, obtained from parishes and the Digital and Population Data Services Agency for the estate inventory.
Estate Administration
The estate is administered through joint decisions by the shareholders. All significant actions, such as selling property or entering into a lease agreement, require the consent of all shareholders. If the shareholders cannot reach an agreement, the court may appoint an estate administrator or estate executor.
Practical matters, such as paying bills and maintaining the home, can be handled without a separate decision from all shareholders, as long as they fall under ordinary estate administration.
Bank Accounts and Financial Matters
Banks receive notification of the death from the population information system and freeze the deceased's accounts. Using the accounts for funeral expenses and essential costs is generally possible by presenting the death certificate and authorization from the estate's shareholders. The actual distribution of the estate's funds requires the completion of the estate inventory deed.
Dissolution of the Estate
The estate is dissolved through the distribution of inheritance. The distribution can be made as an agreement between shareholders or a court-appointed estate distributor can be requested if no agreement is reached. The estate can also be left undivided for the time being, in which case it continues under joint administration. Inheritance tax is assessed for each shareholder based on their inheritance share.
More information about estate administration can be found in our articles on the estate inventory deadline and estate administrator duties.
Frequently asked questions
Who are the shareholders of the estate?
The shareholders of the estate are the statutory heirs, the surviving spouse by virtue of marital right, and beneficiaries under a general will. The circle of shareholders is established through genealogical records obtained for the estate inventory.
How are the estate's banking matters handled?
The estate's bank accounts are frozen after the death notification. Accounts can only be used for estate expenses such as funeral costs and bills. Using the accounts requires authorization from all shareholders or the appointment of an estate administrator.
When is the estate dissolved?
The estate is dissolved through the distribution of inheritance, which can be done at the earliest after the estate inventory. By law, an estate can also exist for a long time, and there is no time limit for dissolution.
Related terms
A statutory procedure to determine the assets and liabilities of the deceased's estate. Must be held within 3 months of death.
A person responsible for administering the estate and organizing the estate inventory (perunkirjoitus).
A document prepared during the estate inventory that lists the estate's assets, liabilities, and shareholders.
A tax paid on inheritance. The amount depends on the value of the inheritance and the relationship to the deceased.
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.
Key duties of the estate administrator: estate management, documents, estate inventory, and inheritance distribution. Who can serve as estate administrator?
Complete guide to estate administration in Finland. Learn about the estate inventory, shareholders' rights, estate management, distribution of assets, and the administrator's duties.