Undivided Estate – What Is Best for You?
What Is an Undivided Estate?
An undivided estate is a deceased estate that has not been distributed. Under certain conditions, the surviving spouse may demand to retain control over the deceased spouse’s entire estate, thereby preventing the deceased’s children from receiving their inheritance immediately. The surviving spouse may remain in possession of the undivided estate for the rest of his or her life or until he or she wishes to remarry. If you are unsure whether you are in possession of an undivided estate, you can contact the Probate Court for further information or ask one of our experienced lawyers specialising in inheritance law to assist you. The rules on undivided estates are set out in the Danish Inheritance Act, which can be read at Retsinformation.
Think Carefully Before Choosing an Undivided Estate
Even if you meet the conditions for remaining in possession of an undivided estate, you should still consider whether it is the right solution for you. If you have the slightest doubt, you should always ask a lawyer specialising in inheritance law to review your case. It can often be far more advantageous to distribute the estate immediately. If you know that you will remain in possession of the undivided estate for the rest of your life, this is not a problem, but if there is even the slightest possibility that you may one day need to distribute the estate, for example in order to remarry, you should consider the matter carefully. Please feel free to contact Advokathuset Bredgade. We can provide you with the appropriate guidance.
It Can Cost You If You Do Not Distribute the Estate
If you make repayments on a mortgage and thereby build up more equity in your home, you also increase your wealth. This means that if you decide to distribute the estate at a later date, a larger amount will have to be distributed than if you had chosen to do so immediately. This is because the value of the estate on the date of distribution determines the inheritance received by the children. Always contact a lawyer specialising in inheritance law before choosing to remain in possession of an undivided estate. You can read more about inheritance tax and estate duty here.
If You Want to Remarry
Even though you are in the midst of grieving the loss of your spouse and the thought of remarrying seems very distant, you should still consider the implications of remaining in possession of an undivided estate. Today, we live longer than ever before, and you may have a long life ahead of you. So even though grief occupies much of your thoughts now, it is impossible to predict whether you may one day find love again and wish to remarry.
Feelings Change Over Time
In our experience, more problems can often arise when the estate is distributed at a later date. When grief strikes following a death in the family, most families stand together. However, if you distribute the estate several years later, the situation may be different. This is particularly true if the distribution takes place because you wish to remarry. In such cases, the tone can be harsher, and we sometimes see children becoming more concerned with protecting their own interests than those of the surviving spouse.
The First Meeting Is Free
Advokathuset Bredgade offers heirs a free meeting before they attend a meeting at the Probate Court regarding the administration of the deceased estate. At this meeting, the heirs can clarify their situation and obtain an assessment of how best to handle the estate in order to achieve the best possible result for the heirs.
Contact lawyer Claus Hansen, who has experience in estate administration and inheritance.
Frequently Asked Questions
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An undivided estate is available to a surviving spouse who is entitled to remain in possession of an undivided estate with joint children. If the deceased spouse had children from a previous relationship, their consent is required.
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An undivided estate can postpone the distribution of inheritance, but it also means that the estate is not settled immediately and that the surviving spouse bears the risk and responsibility for debts and financial matters during this period.
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The rules on compulsory inheritance become relevant when the estate is distributed. However, they may also become relevant during the period of undivided possession if transactions are so extensive that they may be regarded as misuse in relation to the inheritance to which the heirs will subsequently be entitled.
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As a general rule, the surviving spouse may freely dispose of the assets in an undivided estate. The heirs may only object if the transactions are considered misuse in relation to the size of the estate.
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An undivided estate typically ends when the surviving spouse chooses to distribute the estate, upon the death of the surviving spouse, or if the conditions for remaining in possession of an undivided estate are no longer met.
