We send the estate a pre-completed tax return every year in spring, up to the time when the estate ceases. After the inheritance has been distributed, the estate will receive a final pre-completed tax return for that year. The income accrued up until the distribution of the estate is filed on the estate’s tax return. Any income accrued after the distribution of the estate belongs to those parties to the estate who are entitled to it. They file the income they receive on their own tax return.
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.
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.
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.
If you are the only party to a death estate
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.
If the estate has authorised an agent to take care of the matters of the estate, we will primarily contact them in tax matters. Parties to the estate can request documents and information on the estate’s tax matters.