In Finland, many people are struggling to pay inheritance tax, especially if the inheritance includes immovable property that cannot be sold. According to a survey by Lähi-Tapiola insurance company, half of Finns either have received or expect to receive an inheritance that requires payment of inheritance tax. This tax must be paid on inheritances worth 20,000 euros or more.
The most common ways to cover these expenses are using the estate’s savings or the heir’s own savings. However, more than 10 percent of respondents admitted to not preparing for the future costs of inheritance tax at all. Selling estate property and selling the heir’s own property are also common strategies.
In some cases, individuals may need to take out loans or sell their own property to cover these expenses. While the payment period for inheritance taxes has been extended to ten years, it is still important to address these tax obligations promptly to avoid accruing additional interest. Planning for inheritance taxes and seeking financial guidance can help individuals navigate these complex financial responsibilities.
Last year, almost eight million euros in inheritance taxes were subject to enforcement actions in Finland. The number of people paying inheritance tax has also increased, with over 100,000 individuals paying an average of 10,000 euros each. Interest on unpaid taxes is also a concern as the rate has increased to 7.5 percent. Despite this challenge, it is important for individuals in Finland who receive or will receive an inheritance that requires payment of tax to plan ahead and seek guidance from financial experts before facing any financial difficulties.
In conclusion, while there are various ways to cover inheritance tax expenses in Finland, many individuals still face challenges in covering these costs without external funding. It is essential for those receiving an inher
