Estate
When a person dies, his og her assets and fortune become an estate that need to be distributed to the heirs. This means that the assets and property of the deceased must be sold and converted into cash or that the heirs take out some of these assets instead of letting the estate sell them.
An estate is in Denmark in general tax free if the value of the assets without an eventual house or apartment used by the deceased is below DKK 3.272.500 (and DKK 6.545.000 for the longest alive in a married couple). Furthermore the net-fortune, all assets minus all debts, must also be bellow this.
In many cases there have already been inheritance planning in progress that has reduced the estate to become bellow theses amounts.
When an estate is tax free it is often handled by the heirs. The main steps is to send in an opening balance of accounts to the probate court. This establishes an overview on the estate.
Hereafter the heirs are to decide if all or some of the assets must be sold, or if the heirs want to close the estate as fast as possible and just take out the assets as inheritance. This could be the case, if the estate consists of many stocks, where the heirs have an interest in closing at the lowest value. I other estates the heirs chooses to sell everything.
The closing date of the estate is decidable for the heirs to be any day form the day of death and 12 months forward. In estates managed by a public executor the limit is 24 months. However, all assets must be sold or inherited in order to pick a closing date and to close the estate on this date.
In all cases the estate needs to hand in a closing statement to the probate court. If the estate is taxable the tax authorities must also receive the tax report for the estate.
At PrivatRevision we can help you with planning the estate. We can help you with strategy and optimization, and we can help you with the reporting to the court and tax authorities.
We can help you during the whole process or we can help you within few hours to make a strategy that can be processed by you.