A death of a person means the birth of an Estate. An Estate seizes to exist when a copy of the division of properties is handed in to the tax administration. However, an estate may exist for a long period of time and even practice business. An Estate is taxed for it’s income in Finland. By being clear on how Estates are being taxed, it is possible to reduce the tax burden significantly for the parties of the Estate as well as for the Estate itself. It’s all about timing actually i.e.. knowing when to act and in whose name to take action.
To make a tax plan is a fairly quick affair if you have an expert to help you. To see the plan thru however, takes years. The plan consists of giving gifts to younger generations, keeping the right of access etc. The plan is carried out thru prenuptials, testaments and actions in the Estate, legal actions during a long period of time.
All it takes is a family that co-operates and dare discuss these issues openly and with a trusted and competent legal advisor.
Or as Benjamin Franklin (1706-90) in a letter to Jean-Baptiste Leroy, 1789 so adequately put it:
“‘In this world nothing can be said to be certain, except death and taxes.”