Opening Estate Statement and Final Estate Statement for a Deceased Estate
There are different procedures depending on whether you choose private estate administration or administration by a court-appointed estate administrator, but the opening estate statement and final estate statement are two central elements in the administration of a deceased estate.
The opening estate statement and final estate statement form the basis for both tax calculations and the distribution of inheritance among the heirs.
We will try to give you an overview below.
What Are an Opening Estate Statement and a Final Estate Statement?
Opening estate statement is a document used to provide an overview of the deceased’s total assets and debts at the time of death. Depending on the form of estate administration, it is prepared by the heirs, the lawyer or the court-appointed estate administrator. The opening estate statement is a preliminary statement that makes it possible to obtain an overview of the deceased’s financial situation.
Final estate statement is one of the final elements in the process. It contains information about the entire course of the estate administration, the assets as of the cut-off date and the distribution of the inheritance among the heirs. This therefore also includes all income and expenses of the estate from the date of death until the cut-off date. It must also be submitted to the Probate Court.
The Probate Court forwards the opening estate statement and final estate statement to the Danish Tax Agency in cases of private estate administration. The rules on submission and administration are set out in the Danish Administration of Estates Act, which can be read at Retsinformation.
Deadlines for the Opening Estate Statement and Final Estate Statement in Private Estate Administration
For deceased estates administered privately, the opening estate statement must be submitted to the Probate Court no later than six months after the date of death, but no later than two months after the estate has been released for administration. The Probate Court takes deadlines very seriously, and ultimately the deceased estate may be transferred to administration by a court-appointed estate administrator if you fail to comply with the deadlines. The final estate statement must be submitted no later than 15 months after the date of death, and correctly prepared opening and final estate statements are essential for meeting the deadlines.
Estate Income Tax and Estate Duty
If the total net assets on the cut-off date exceed DKK 2,839,100. Net assets are calculated by deducting the estate’s debts from its assets. In addition, certain other factors must also be taken into account, for example whether the estate includes a property that can be sold tax-free under Section 8 of the Danish Capital Gains Tax on Property Act, in which case the property may be excluded from the estate’s assets. Estate duty can broadly be divided into three categories. You can read much more about estate duty and the applicable rates here.
Legal Assistance with the Opening Estate Statement and Final Estate Statement
When preparing the opening estate statement and final estate statement, it is helpful to have a lawyer to advise you. This ensures that all documents are prepared correctly and provides a better overview of the estate. In addition, we are also happy to assist with: paying estate duty, estate income tax and creditors on time, answering questions about inheritance law and wills, advising on tax and duty matters, advising on matters involving inheritance of real estate, etc. – all at competitive rates.
Advokathuset Bredgade has many years of experience in estate administration, opening estate statements and final estate statements.
Frequently Asked Questions
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An opening estate statement is a statement of the deceased’s assets and liabilities as of the date of death, providing an overview of the estate’s financial position and forming the basis for the subsequent final estate statement.
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The opening estate statement must normally be submitted to the Probate Court no later than six months after the date of death, subject to certain deadlines depending on when the estate was released for administration.
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The opening estate statement is a preliminary overview of the estate’s financial position on the date of death, whereas the final estate statement is the final statement showing the actual value and distribution of the estate’s assets and debts.
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The final estate statement must normally be submitted to the Probate Court no later than 15 months after the date of death, once all assets have been sold, debts have been paid and the estate can be closed.
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If the deadlines for the opening estate statement or final estate statement are exceeded, the Probate Court may decide that the estate should be transferred to administration by a court-appointed estate administrator, which may result in additional costs and longer processing times.
