What is an estate administration?
After a death, and on the condition that the surviving spouse is not in an undivided estate, the estate must be divided between the heirs by law and/or any testamentary heirs.
In a probate, you must therefore first and foremost determine which assets belonged to the deceased and are therefore subject to distribution.
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Which values should be distributed?
It is the values at the time of death that are to be distributed after debts have been deducted.
This includes money, shares and the like, as well as objects to be distributed. If an heir receives assets with a greater value than the inheritance amount, this heir must compensate the other heirs for the difference.
What are the most common challenges in estate administration?
Questions that often arise in such contexts are what constitutes joint ownership, and whether there is separate property or assets to be divided. In the case of ordinary joint ownership, the assets will be divided equally between the deceased and the survivor.
Questions may also arise as to whether the deceased has given away or sold significant assets at the time of death, which in reality involves a distribution of the inheritance or whether it should be regarded as a life disposition that can be freely given.
If the surviving spouse is to sit in an undivided estate, they must fulfil the conditions for this. For example, you cannot sit in an undivided estate if the deceased has special children, unless the special children consent to this.
For cohabitants who have or have had children together, or are expecting children together, there is a limited right to sit undivided with certain assets.
In some cases, there may be a so-called compound probate, in which the assets are first divided between the spouses, and then the deceased's share is divided between the heirs, including the spouse.
How much does the spouse inherit?
If the deceased leaves behind children, the spouse will inherit one quarter of the deceased's estate. This is the case even if the deceased only has stepchildren. If the deceased has no children, but their parents or siblings are still alive, the spouse will inherit half. If the deceased has no living parents or siblings, the spouse will inherit everything.
What is the minimum inheritance for spouses and heirs?
The spouse must have at least four times the basic amount of the National Insurance Scheme, even if this is more than the four times mentioned above. The minimum inheritance cannot be limited in a will, and it takes precedence over the compulsory portion of the heirs' inheritance. In small estates, the spouse may therefore end up inheriting everything.
The compulsory portion of the inheritance that the heirs are to receive is two-thirds of the entire estate, although this is currently capped at NOK 1 million. The new Inheritance Act proposes that the minimum amount should correspond to 15 times the National Insurance basic amount. This law is expected to come into force in 2020.
In addition to the minimum inheritance and compulsory partial inheritance, a testator can freely bequeath to whomever he or she wishes.
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