Death estates cease to exist when they are distributed
Death estates cease to exist when all the estate’s property and assets are distributed to the inheritors. Death estates do not cease if only a part of it is distributed. To make an estate cease, deliver a photocopy of the agreement of distribution of the inheritance to the Tax Administration.
If an estate owns no property that could be distributed, there is no need to deliver a photocopy of the agreement to the Tax Administration.
When the year when the inheritance was distributed has ended, a pre-completed tax return will be sent to the estate for the final time. After that, the parties to the estate must file tax returns on the income they receive and on the property they have. This way, the estate is no longer a tax subject.
If you are the only party to a death estate, the estate’s existence for the Tax Administration’s purposes will cease when you have delivered a copy of the deed of estate inventory to a tax office. The property is treated as having been transferred to you immediately after the decedent’s death. If the estate receives any income after the decedent’s death, you are treated as the beneficiary of such income, and you pay tax on it.