Guidance → Private Estate Administration or Court-Appointed Estate Administrator?
What Is Private Estate Administration?
Private estate administration is the simplest form of estate administration available and therefore also the least expensive option for the heirs. Under private estate administration, the heirs themselves distribute the inheritance and administer the deceased estate. Certain conditions must be met before a deceased estate can be administered privately. It is often worthwhile to consult a lawyer when privately administering a deceased estate, as there are many rules to be aware of – particularly if the estate exceeds a certain net asset value.
The rules on the different forms of estate administration are set out in the Danish Administration of Estates Act, which can be read at Retsinformation.
Conditions for Private Estate Administration
A deceased estate can be administered privately if the following conditions are met:
- All heirs must agree to private estate administration.
- At least one of the heirs must be of legal age.
- The deceased must not have made a will excluding private estate administration.
- There must be sufficient funds in the estate to cover its debts.
- The heirs must not be insolvent.
- It is NO LONGER a requirement that the heirs assume liability for the deceased’s debts.
If the conditions for private estate administration are met and the heirs wish to distribute the inheritance and administer the deceased estate themselves, the heirs should choose private estate administration – often with the assistance of a lawyer. If the estate has limited assets, it may be advantageous to attend a meeting at the Probate Court and discuss the administration of the estate.
Tasks Involved in Private Estate Administration
Under private estate administration, the heirs themselves are responsible for all the practical and legal tasks that must be carried out in connection with administering the deceased estate – and there are many tasks. Here is an overview of some of the most important tasks:
- Distribution/realisation of the estate’s assets.
- Payment of expenses and the deceased’s debts.
- Preparation of the opening estate statement.
- Preparation of a tax return for the Danish Tax Agency if the estate has assets exceeding approximately DKK 2.5 million.
- Preparation of the final estate statement no later than approximately one year after the date of death.
Get a better overview with our checklist for private estate administration.
Advantages of Private Estate Administration?
Private estate administration is less expensive and more informal than administration by a court-appointed estate administrator. If the heirs can carry out some of the tasks themselves, considerable amounts of money can be saved. However, assistance from an inheritance lawyer is often also a worthwhile investment, as there are many rules and tasks to consider. Private estate administration with the assistance of a lawyer is generally also completed more quickly than administration by a court-appointed estate administrator.
Each Heir Retains a Full Right of Veto Over All Decisions Concerning the Estate
The heirs can choose and appoint a lawyer whom they trust and therefore have greater influence over the course of the inheritance proceedings. When do you need legal assistance with a deceased estate?
In private estate administration, it is often advantageous to contact a lawyer specialising in probate law, inheritance law and deceased estates, who can handle the many tasks involved in administering the estate. The lawyer requests that the estate be released for private administration and cancels the meeting at the Probate Court.
Free Meeting with a Probate Lawyer
Advokathuset Bredgade offers heirs a free meeting before they attend a meeting at the Probate Court regarding how the estate can be administered. At this meeting at Advokathuset Bredgade with the probate lawyer, the heirs can receive assistance in deciding how the deceased estate should be administered. The lawyer will also assess whether the deceased estate would benefit from private estate administration.
The lawyer also explains what will happen during the administration of the deceased estate and how the heirs can best handle the estate to achieve the best possible result for them. The meeting is without obligation, and the heirs can subsequently choose to obtain assistance from the lawyer with the administration of the deceased estate.
Advokathuset Bredgade has probate lawyers with extensive experience in advising on inheritance and estate administration. We assist and advise heirs on all practical and legal aspects of administering deceased estates.
Please contact us to arrange a free meeting about estate administration. Our lawyers can provide advice to help you and your family through the administration of the deceased estate. Contact Advokathuset Bredgade for a free meeting
You can also contact lawyer Martine Lykke Tox, tel. 31 18 66 20, or lawyer Claus Christian Hansen, tel. 31 18 66 22, both experienced probate lawyers.
Frequently Asked Questions
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Private estate administration can be chosen when all heirs agree, the estate is solvent and the Probate Court approves the arrangement. This requires that there are no statutory obstacles.
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Under private estate administration, heirs may risk becoming personally liable for debts in proportion to their inheritance share if the estate is administered incorrectly or proves to be insolvent. Therefore, having a proper overview of the estate’s financial position is essential.
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The time required depends on the complexity of the estate, the number of assets and liabilities and the cooperation between the heirs, but private estate administration can often be completed more quickly than administration by a court-appointed estate administrator.
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Yes. If the heirs consider that private estate administration is not working, or complications arise, they can apply to the Probate Court for administration by a court-appointed estate administrator.
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There is no requirement to engage a lawyer for private estate administration, but advice from a probate lawyer is often sought to ensure that the estate is administered correctly and that the law is complied with.
