What is inheritance?
Inheritance is a concept that refers to the property, rights and obligations that pass after the death of the deceased to his heirs. An estate can include many types of assets, such as real estate, money, securities, vehicles, and personal effects. Inheritance also involves legal and financial issues, which it is good to understand so that the distribution of inheritance goes as smoothly as possible.
What does inheritance include?
Inheritance can consist of many types of assets and rights. The most common things that belong to inheritance are:
- Real estate: Apartments, lots and other real estate.
- Cash: Bank accounts, cash and other cash.
- Securities: Shares, bonds and other investments.
- Vehicles: Cars, motorcycles, boats and other vehicles.
- Personal items: Jewelry, artwork, furniture and other personal items.
Inheritance law in Finland
In Finland, inheritance law is regulated by the inheritance law, which defines how the deceased’s property is divided among the heirs. According to the inheritance arc, the heirs are divided into three groups of heirs:
- First group of heirs: Children of the deceased and their descendants.
- Second group of heirs: Parents of the deceased and their descendants (siblings of the deceased and their descendants).
- The third group of heirs: The deceased’s grandparents and their descendants (the deceased’s uncles, aunts and their descendants).
If the deceased has no heirs in any of these groups, the inheritance goes to the state.
Testament and distribution of inheritance
The deceased can also order the distribution of his property in a will. A will is a document in which a person expresses his last wishes regarding the distribution of his property after his death. With the help of a will, the deceased can, for example, leave his property to persons who are not heirs according to law, or order the distribution of property in a different way than would be required by the law of inheritance.
The drafting of a will is strictly regulated, and it must meet certain formalities in order to be valid. The will must be in writing, and it must be signed by two unobstructed witnesses.
Inheritance taxation
Inheritance also involves tax issues. In Finland, inheritance tax is paid on inherited property, and the amount of the tax depends on the value of the inheritance and the heir’s relationship to the deceased. The inheritance tax scale is progressive, i.e. the tax rate increases as the value of the inheritance increases.
More information about inheritance law and inheritance tax can be found, for example, on Tax administration website and from Suomi.fi-palvelut.
Inheritance is a complex and multi-step process that requires careful planning and understanding. It is recommended to consult an expert if questions related to inheritance seem challenging.
