What should you do in the case of several successors?

If several successors have accepted succession, the estate belongs to them jointly. This means that both the estate and the related rights and obligations belong to all co-successors jointly. When successors want to dispose of individual items, the consent of all the co-successors is required.

A co-successor may individually dispose of their legal share in the estate but cannot dispose of the objects forming part of the estate or a legal share of these objects independently. (This means that if the estate consists of an apartment and a car and three successors have accepted succession, then one successor can independently sell their legal share of the estate, that is, one-third of the car and the apartment.) If a co-successor sells their share of the estate to a third party, the other co-successors have the right of pre-emption within two months.

However, if an successor wants to dispose of individual items of the estate, the estate should be divided. When the estate is divided, it is determined which items or shares of items and which rights and obligations forming part of the estate transfer to each co-successor. The estate is divided among the successors according to their shares in the estate, based on the usual value of the items making up the estate at the time of division.

What should you look out for if inherited real estate is burdened with debt?

If the successors are not aware of the extent of the obligations received by accepting succession (whether the debt burden exceeds the value of the estate), an inventory of the estate should be made. After an inventory, the liability of an successor for the obligations related to the estate is limited to the value of the estate.

What taxes should be paid when inheriting real estate?

When inheriting real estate, new land owners should consider the obligation to pay land tax. There is no inheritance tax in Estonia. Inherited estate is not subject to income tax. However, income tax is levied on the proceeds from the transfer of property (sale of inherited real estate) and rental income (renting/letting out the inherited real estate). However, there is an exception – the proceeds from the transfer of immovable property are not subject to income tax if the transferor used the dwelling as their residence. This exemption can be used for a single transfer over a two-year period. If the immovable was not used as a dwelling, the successor can deduct the costs they have incurred for the property (these costs can be deducted before income tax from the sales price on the basis of expense documents). The costs that the successor incurred for the acquisition of the property cannot be deducted.

What are the costs of succession procedures?

The notary fee for succession proceedings is set out in the Notary Fee Act. VAT is added to the notary fee.

Application for the initiation of succession proceedings – 63.90 euros

Authentication of an application for renouncing succession – 6.35 euros

Authentication of an application for accepting succession – 65.15 euros (Under the Law of Succession Act, an successor does not have to accept succession in order to receive it, but it transfers to the successor automatically.)

If an application for acceptance or renouncing succession is contained in the application for initiation of succession proceedings, a fee is only charged for the latter.

Conducting calling proceedings provided for in the Law of Succession Act – 25.55 euros

Identification of successors and issue of a succession certificate – €102.25 euros

If a bailiff conducts an inventory of the estate, the bailiff’s fee must be paid for the inventory depending on the value of the property.

If the estate includes an immovable property and an application is made to enter the successors in the land register as owners, a notary fee is added. Preparation of a draft application to be submitted to the land registry or registration department of a court, the certification of the signature of the applicant and the issue of a digital copy of the application – 35.75 euros. In the case of several applicants, a fee of 6.35 euros is added for the certification of the signatures of each of the additional persons.

What obstacles may arise in the resale of inherited real estate?

Problems usually concern the resale of real estate inherited by minors. If there is a minor in the circle of successors, the court’s consent is required to sell sale the real estate. The consent of the parents is not sufficient in such a case. To obtain the court’s consent, the applicant must state the reasons why the immovable property is to be sold and whether and how the minor will benefit from the transaction.

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