The Complexities of Paying Inheritance Tax in Finland: Navigating Financial Responsibilities After a Loved One’s Passing

Inheritance tax can be a significant expense, especially if the inheritance includes immovable property that cannot be sold. Many people in Finland are experiencing difficulties in paying inheritance tax. According to a survey commissioned by the insurance company Lähi-Tapiola, half of Finns either have received or anticipate receiving an inheritance that requires payment of inheritance tax. This tax must be paid on inheritances worth 20,000 euros or more, and many individuals struggle to cover these costs without external funding.

Selling estate property is another common strategy to cover these expenses, but some respondents admitted to not preparing for the future costs of inheritance tax at all. The survey results also highlight the growing issue of unpaid inheritance taxes in Finland. Last year, almost eight million euros in inheritance taxes were subject to enforcement actions. Interest on unpaid taxes is also a concern, as the rate has increased to 7.5 percent.

While planning for inheritance taxes and seeking financial guidance can help individuals navigate these complex financial responsibilities, many still face challenges in covering these expenses. Some individuals have had to resort to selling their own property or taking out loans to pay for the inheritance tax, and others may face even greater challenges when dealing with immovable property that cannot be sold.

Despite the challenges faced by many Finns when it comes to paying inheritance tax, it is important to address these obligations promptly to avoid accruing additional interest and potential legal action down the line. Seeking professional financial advice and planning ahead can help individuals navigate this complex area of law and ensure that they are prepared for any eventuality when it comes to their financial responsibilities.

The survey results also revealed that nearly one in ten respondents who received or will receive an inheritance had to take out a loan to pay for the inheritance tax. Some individuals have had to resort to selling their own property to cover these expenses, which can lead to further financial strain down the line.

In situations where an individual’s estate includes immovable property that cannot be sold, they may face even greater challenges in paying off their debts or settling their affairs after death. In such cases, seeking professional legal guidance from an experienced attorney who specializes in probate law can help ensure that everything is handled properly and efficiently.

Overall, while paying off debt can be a difficult process at any time, paying off an inherited debt can be especially challenging due to its unexpected nature and potential legal implications down the line. Therefore, it’s important for anyone facing such circumstances seek professional legal advice from experienced attorneys who specialize in probate law.