INHERITANCE

In Estonia, there are no inheritance tax laws.

However, income tax shall be applicable to gains from the transfer of property receivable as a gift or inheritance. estate agents

Some gains are tax-free, such as:

Gains from the sale of the primary residence of a taxpayer;

Profits of the transfer of a summer cottage or garden house owned by the taxpayer for over 2 years.

LAW INHERITANCE

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What are the laws of heritage in Estonia?

The legacy shall be governed by the law of the deceased's last country of residence.

Estonian Heritage law (EIL), Private International Law (PIL) and Code of Civil Procedure govern heritage in Estonia (CCP). The current EIL shall be valid until 31 December 2008, and a new Inheritance Law shall apply from 1 January 2009.

Foreign property owners who are members of different faiths or nationalities or foreigners who do not live in Estonia shall not be treated differently by law.

Heritage shall be governed by the law of the deceased's last country of residence. The Estonian heritage law therefore only affects the estate of a deceased whose last place of residence was Estonia. A person can make a disposition of the national laws of his/her citizenship in his/her will (or inheritance contracts). Such a provision is not valid if the individual is not a citizen at the time of death. If a foreigner has made this provision and his/her national law stipulates that the law applicable in inheritance matters is the law of the country in which the property is situated and that the object is located in Estonia, Estonian Inheritance Law will apply.

The rules of private international law of the external state apply in the event of referral (transmission of inheritance issues from a foreign country to Estonia). If these rules require Estonian law to be enforced (remittance), they apply the rules of Estonian substantive law. If the law of a third state is prescribed by foreign law, transmission is not considered.

The International Private Law Act stipulates:

the types and effects of the provisions of the will;

Capacity for succession and unworthiness to achieve success;

The scope of the succession;

The successors and their relationships;

Responsibility for the testator's debts.

Inheritance proceedings open at the place of his last residence upon the declaration of death of the deceased. A successor has the right to succeed when a succession is opened. According to the current EIL, a successor must accept the succession in order to succeed. The new EIL states that succession shall be transferred to the successor when the succession has opened, but if a successor does not wish to succeed, he/she must renounce his/her right to succeed.

According to the current EIL a notary may specify a term for acceptance and/or withdrawal of a succession and send a written notice to the successor or publish the notification in the official Ametlikud Teadaanded publication. The term shall not be less than two months after the notice has been received or publicated. Usually, all successors are known if everything is done quickly, and there are no disputes, and the legacy procedure takes approximately 3 to 6 months. The process of legacy is concluded when a notary issues a successor certificate. If ten years have passed after the opening of the succession, a succession cannot be accepted or renounced.

The new EIL stipulates a three-month waiver period. The term begins as the successor becomes aware (or should be conscious) of the death and right of succession of the deceased. A notary shall be presented with corresponding notarial application for the start of an estate procedure by the successor, the creditor of the deceased, a legatee or any other person with rights in relation to the estate. A notary publishes a notification in the official publication Ametlikud Teada concerning the commencement of the succession procedure no later than two working days after the beginning of the succession procedure. If the successor is unknown or reliable information is not available on the successor's place of residence, the notary publishes a call in Ametlikud Teadaanded for an identification of a Successor. The legacy proceedings are concluded if a notary issues a certificate of succession. The certificate is issued where there is sufficient evidence concerning the successor's right to succeed but not until one month after the notice of initiation of the succession proceedings has been issued. There is every reason to believe that the legacy proceedings under the new EIL will take no longer than the existing EIL.

In accordance with the Code of Civil Procedure (CCP), inheritance issues (i.e., establishment of the right to succession, claims by a successor against a property owner, claims arising from a contract of legacy or succession or claims of a compelling portion or division of an estate) must be brought before the Court at the time of the testator's death. The CCP also regulates the implementation of property management procedures. An Estonian tribunal may apply management measures to an estate in Estonia, irrespective of which State is the law of which the succession applies and of which State the jurisdiction is authorized to conduct the succession proceedings. Estate management measures shall be applied by the Court where the succession is opened. If an estate opens in a foreign state and the estate is located in Estonia, the Court may apply estate management measures in the place of the estate.