Inheritance law

If the deceased was neither married nor left a will, the distribution of the estate is determined by statutory law. The distribution is primarily based on the deceased’s familial relationships, with closer relatives inheriting before more distant ones. The portion of the estate to which an heir is entitled is referred to as the inheritance share.

Estate inventory

Following the death of the decedent, the financial affairs are managed by the estate, which acts as an independent legal entity. The estate is represented by executors, who are responsible for managing the deceased’s assets until the estate is settled. The estate inventory details the deceased’s property and, in some cases, includes the property of the surviving spouse. Division of the estate, if necessary, occurs when the inventory is compiled. Debts of the deceased must be paid from the estate before any legacies are distributed. If a particular item is bequeathed to someone under a will, it will be honored after debts are settled. The remaining assets are distributed among the heirs according to succession laws.

Debts are not passed on to heirs, meaning they are not required to pay off the deceased’s debts. However, the size of the inheritance may be affected if the deceased’s debts exceed their assets.

Distribution of the estate

Intestate Succession

When an unmarried individual dies, their children inherit first. If a child predeceases the decedent or renounces their inheritance, the child’s descendants inherit in their place.

If there are no surviving children, the estate is divided between the decedent’s parents. If a parent is deceased, the decedent’s siblings or half-siblings inherit their share. If a sibling or half-sibling is also deceased, their children inherit in their place.

If no siblings, half-siblings, nieces, or nephews survive, but one parent does, the surviving parent inherits the entire estate. In the absence of children, grandchildren, parents, or siblings, the estate passes to the decedent’s grandparents, with each grandparent receiving an equal share. If a grandparent is deceased, their children (the decedent’s aunts and uncles) inherit their share. Cousins are not eligible to inherit.

In the absence of any eligible family heirs, the estate escheats to the General Inheritance Fund.

Property rights and advances on inheritance

Heirs inherit with full ownership rights, allowing them to consume, sell, gift, or bequeath the inherited property.

Gifts given to children or grandchildren during the testator’s lifetime are considered advances on the inheritance unless otherwise specified, ensuring equitable distribution. The value of such gifts is added to the estate for the purpose of calculating each beneficiary’s inheritance share. The recipient of the gift then deducts the gift’s value from their inheritance. If the testator wishes a gift not to be considered an advance, this must be expressly stated in the will, and a deed of gift should be executed.

If the deceased was married

When the deceased was married, a division of property must first determine the estate’s portion. Subsequently, the surviving spouse inherits the estate, but with a right of free disposal rather than full ownership. This means that while the surviving spouse may use, sell, or give away the property during their lifetime, they cannot bequeath it. Upon the surviving spouse’s death, the deceased’s heirs (such as children, parents, siblings, nieces, and nephews) inherit the remaining estate.

Children from previous marriages or relationships (known as “särkullbarn”) have the right to inherit directly, even if the deceased was married. However, the base amount rule protects the surviving spouse by ensuring they receive property equivalent to at least four base amounts. Särkullbarn can waive their right to inherit immediately in favor of the surviving spouse, with the right to inherit postponed until the spouse’s death.

If you want to read more about how a division of property works, you can do so by clicking HERE.

Surviving cohabitant

A surviving cohabiting partner does not have an automatic right to inherit, even if they have children together. Thus, it is advisable to make a will if one wishes for a cohabitant to inherit.

Nevertheless, certain protective measures are in place. The small base amount rule under the Cohabitation Act entitles the surviving cohabitant to receive property up to two base amounts in value. Under specific conditions, the surviving cohabitant may also have the right to take over the joint home, provided compensation is paid to the estate for the home’s value.

Wills

A valid will takes precedence over intestate succession laws, although certain restrictions apply. For instance, one cannot completely disinherit children or grandchildren. Heirs are entitled to a reserved portion, known as the statutory share, amounting to half of the inheritance, unless they voluntarily forgo this right.If you wish to read more about wills, you can do so by clicking HERE.

Waiver of inheritance

It is possible to waive the right to inheritance by either renouncing the inheritance or transferring it to another party.

Renunciation of inheritance

Renunciation involves a written declaration waiving the right to inherit, which can occur either during the testator’s lifetime or after their death. This renunciation is formalized through a written agreement or acceptance of a will favoring another person.

Upon renunciation, the individual ceases to be considered an heir. However, they are still entitled to the statutory share (half of their intended inheritance). Renunciation effectively extinguishes the renouncer’s branch of the family line concerning the deceased’s estate, meaning their descendants do not inherit. To ensure that the renouncer’s descendants inherit, this intention must be clearly stated in the renunciation document.

Transfer of inheritance

An heir may transfer their inheritance to a specified beneficiary, which may include anyone. The transfer can be for compensation. If the transfer concerns the entire or a portion of the heir’s share, the beneficiary becomes a shareholder in the estate. If it pertains only to a specific amount or item, the beneficiary does not become a shareholder.

Alternatively, an inheritance transfer can occur through renunciation, provided no compensation is involved and it aligns with the legal order of succession. In this case, the inheritance is distributed as if the renouncer were deceased.

We will help you

At Advantage law firm, we have experience in both Swedish and international inheritance law. We assist our clients in all issues and cases. Contact us if you need help with an inheritance law issue and we will help you.