It so happened that a relative had bequeathed some forest, some shares, etc., to the undersigned and my brother. Are there any forum members here who have already arranged such matters?
A real estate partnership already exists, through which the ownership of the summer cottage is shared equally. The situation gets even more complicated if the management
Years ago, I was in a somewhat similar situation and realized that I shouldnât have or needed to âhandle things togetherâ but rather just allocate everyone their own share or buy others out. Years pass and situations change. However, this is not always possible, and I suppose every case is unique.
Inheritance matters bring out the worst in people. You should really go into it with the thought that there will be disputes. So, handle things so that there are no joint possessions, etc.
Signed, I have seen inheritance disputes destroy family relationships.
What happens when your time ends and your children and your brotherâs children inherit from you? Without knowing you in more detail, it seems as if your goal is to create more big family feuds in the world 
I understand the concern. In fact, I know very well what youâre talking about.
In this case, thereâs nothing to argue about. If itâs already decided beforehand who gets what, then the whole thing is actually very simple. Iâve mainly been thinking about the practical implementation, how to arrange things from a bureaucratic perspective. Of course, these things can be figured out by digging around and will become clear over time, but first-hand information always makes the task easier.
Iâve never really left anything to chance with these things. I had a will already in my twenties, when I seemed to have accumulated some wealth. Now that I have kids, I consider it natural to pass the baton to them.
My brother will probably not have children of his own. It has been important to him that any potential wealth be transferred to me and/or my children. Iâll need to find out if the association (yhtymĂ€) affects this in any way. Probably not.
Okay, but what happens if a portion of your brotherâs share goes to his spouse as an equalization payment? What if, as you get older, you end up in a dispute and he wills his property to someone else? Or, what if a mysterious will made later in life is found, which you believe goes against your brotherâs expressed wishes, but otherwise seems legally valid? In practice, the most likely path leads to court, because joint property is not easily disposed of, and there are a thousand different ways it can go wrong.
Overall, if thereâs a dilapidated granny flat, the greatest gift one can give to heirs is to burn it to the ground before death. The legal costs and disputes are almost never worth what follows if you leave it to a âfavorite childâ or divide it into âjoint propertyâ.
I donât have a spouse, and itâs unlikely I ever will. The will specifically included a clause that would exclude spouses from the division in the event of a divorce. The same was actually true for that cabin I might have mentioned earlier.
Those are extreme situations that, of course, happen now and then. Itâs always good to think about them.
Iâm about to inherit a bunch of paper shares. What things should I consider?
Can they be converted to digital form, e.g., in Nordnet? Should I sell them immediately or keep them for dividends?
Their value is apparently determined by the share price on the date of death? For selling, there seem to be different options like the acquisition cost presumption, etc.?
Will the lawyer at the estate inventory possibly give their opinion on what to do, or will they just ask what we want to do?
One option for forest ownership is to form a joint forest. This way, inheritance distribution wonât cause problems. Shares can be distributed, but the forest doesnât need to be fragmented.
You should find out in advance if they are still convertible or if they only have historical value. Changing the inheritance tax valuations afterward is another hassle. Additionally, when calling the companyâs share register, you should ask if the conversion period is about to expire. It is also advisable to act within this year, as dividends are paid retroactively only for a certain period.
Hereâs how it went for us,
An old, rundown 21-hectare farm was left to the estate with two beneficiaries.
My brother and I are the beneficiaries; my brother is studying at a university of applied sciences.
When drawing up the inventory, the lawyer said that itâs not worth dividing the inheritance because the farm is remote, so its value is low. My brotherâs student aid and student loan would be denied because after dividing the farm, he would have assets/income.
However, this income is barely anything in a year, so dividing it is not sensible for his studies.
We got lucky; a few sawlogs were found in the forest, and the price of wood has increased.
Weâll jointly clear an area in the forest to cover the estateâs expenses. With the same agreement, the estate administrator will get their own debts back from the estate, funeral bills, fuel, hospital bills, and other expenses incurred from managing the estate that came out of their own pocket.
In the future, any potential timber sales revenue will go through the estate into investments, jointly diversified into funds over time. Stock trading is probably not sensible because quick decisions require two consents.
Of course, there are variables in the equation. My partner, whom I once thought of taking to the altar. A prenuptial agreement has been tentatively agreed upon with the mentality that each should take care of their own bankruptcy.
I donât know how estate investment matters work tax-wise; that still needs to be clarified if we ever get income from forest sales.
Itâs a shame about the farm, which is deteriorating, becoming unusable while empty. Selling it is not worth it due to the falling value of remote areas.
Dividing the farm is probably most sensible to do in the future; then, at least, no one would have a say in the otherâs affairs.
Your lawyer was talking nonsense. According to Kela (the Social Insurance Institution of Finland), student aid takes into account earned and capital income subject to the Income Tax Act. Inheritances subject to inheritance and gift taxation are not taken into account.
Is there still an exchange period ongoing for any company? For example, the exchange period for Sampo ended years ago: https://www.porssitieto.fi/arvotonosake/index.html
I would assume that these have already ended for all companies in the last decade.
Youâll have to check for each share class whether itâs still current (kurantti) or worthless.
Loihde (Viria) stopped trading paper shares on June 30, 2021.
https://www.loihde.com/omistajille/osake/paperiosake/
Hi, old thread but my topic should fit here, so I wonât start a new one. The topic is transferring assets from parents to children/a child. What kind of methods come to mind, and do you have recommendations or warnings about pitfalls based on personal experience? Iâve been browsing the âwonderful world of the internetâ a bit (e.g., the tax authorityâs website) and have come to the conclusion that the best options for transferring assets like real estate or apartment shares are:
Of course, the easiest remaining method is still the âŹ5,000/3 years/parent rule, but that is quite slow and even a poor method if there is a lot of wealth to transfer or if itâs tied up in apartment shares, for example.
If the children are at an age where they have their own expenses or purchases, you can buy them household appliances and such. For some reason, these arenât usually considered taxable gifts. It wonât add up to huge sums, but itâs something.
One option for a bigger play is to set up an investment company, bring the kids in as shareholders, and shuffle your holdings into it. Then you can gradually transfer your own shares to the children.
I wonder how the ownership distribution of an investment company works from a taxation perspective? If, for example, you set up a limited company (Oy) with the kids as shareholders and then contribute a few apartments to the company as a contribution in kind (apport), what would the tax authorities say? And what if you want to exit the company entirely and leave it just to the kidsâhow would that work? Direct donations or undervalued sales might still seem like the easiest path.
To pay for all of the childrenâs living expenses and purchases. And then, if we move into the gray area or beyond, only the imagination is the limit, where the saying âonly the poor pay inheritance taxâ also applies.
The possibilities for undervaluation vary across different assets. For example, individuals with substantial forest holdings can buy farmland and become farmers to carry out a tax-motivated generational transfer to their children. This is because such a transfer is not possible for a forest estate.
I wish I could remember that clever forest estate scheme; I heard about it a few years back. It went something like this: you buy a forest estate, harvest the timber, and then sell it on. Or the same process in reverse. The benefits come from tax deductions related to forestry and timber sales, as well as the calculated capital losses on the logged plot. A manager at a sawmill company explained the arrangement. Itâs a clever setup, but I didnât make a note of it since I didnât have the chance to utilize it at the time.