Inheritance law

Fundamentals of inheritance law

Inheritance law is a branch of private law that regulates the transfer of property upon death. In Finland, the central statute of inheritance law is the Code of Inheritance (40/1965), which came into force in 1966. The Code of Inheritance defines who has the right to inherit, the conditions under which a will is valid, how the estate is administered and how the division of the estate is carried out.

Inheritance law operates on two principles: statutory succession and testamentary succession. Without a will, property is divided in the order laid down in the Code of Inheritance. A will allows the testator to deviate from statutory succession, but the forced share of direct descendants cannot be overridden. Inheritance law is also closely linked to marital law, as the spouse's marital right affects the scope of the estate.

Order of succession – the parentelic system

In Finland, statutory succession follows the parentelic system, in which heirs are divided into three groups by kinship. In the first parentele are the direct descendants, i.e. the deceased's children. If a child has died, their share passes to their children (the principle of representation). Direct descendants always have the right to the forced share, even if a will provides otherwise.

In the second parentele are the deceased's parents. If a parent has died, their share passes to the deceased's siblings and further to their descendants. In the third parentele are the grandparents and their children, i.e. the deceased's uncles and aunts. Cousins do not inherit under Finnish law – if there are no heirs in the third parentele and no will has been made, the estate goes to the state.

The spouse has a special position in the order of succession. If the deceased has no direct descendants, the spouse inherits everything. If there are direct descendants, the spouse has the right to retain possession of the couple's shared home and ordinary household goods (the surviving spouse's right of possession). This protection is a significant part of the surviving spouse's position in inheritance law.

Wills and the forced share

A will is a legal act by which a person directs the distribution of their property after death. The Code of Inheritance sets strict formal requirements for wills: they must be in writing and signed simultaneously in the presence of two impartial witnesses. The testator must be at least 18 years old and legally competent.

Testamentary freedom is not unlimited. Direct descendants have the right to a forced share, which is half of the statutory inheritance share. If a will violates the forced share, the heir can claim their forced share within six months of being notified of the will. Claiming the forced share is an active right of the heir – it is not automatic. The estate inventory determines the estate's assets, on the basis of which the amount of the forced share is calculated.

Special issues in inheritance law

Inheritance law involves several special situations. Renunciation of an inheritance can be done either in advance or after the testator's death, and it has tax implications. Disinheriting an heir is possible only on grounds laid down by law, such as if the heir has intentionally wronged the testator. Inheritance tax is determined by the value of the inherited property and the degree of kinship.

International inheritance matters have become more common in Finland. The EU Succession Regulation (650/2012) determines which country's law applies in cross-border inheritance situations – the main rule is the law of the deceased's last habitual residence. The European Certificate of Succession facilitates handling inheritance matters in another EU country.