Estate
When a family member or a close relative passes away, a number of issues must be addressed. One of these concerns is how the deceased’s estate is to be distributed, and how the financial affairs of the deceased are to be settled in an orderly manner. In addition, there are inevitably tax-related matters. The estate is often required to pay certain taxes on behalf of the deceased, as well as estate duty (inheritance tax).
PrivatRevision can assist in clarifying the consequences of any will and in determining how the estate is to be distributed pursuant to the provisions of the Danish Inheritance Act.
We are able to assist with the preparation of estate accounts and the actual distribution of the estate, including the publication of probate notices in the Danish Official Gazette (Statstidende), the preparation of an opening balance sheet, possible valuation of estate assets, preparation of the estate accounts, and the distribution of the inheritance to the heirs.
Our assistance also encompasses tax matters relating to the estate itself. Estates may be either taxable or exempt from taxation. As a rule of thumb, an estate is tax-exempt if its assets or net wealth do not exceed approximately DKK 3 million (DKK 6 million where the surviving spouse retains the estate undivided). It is, however, important to consider how the concepts of “assets” and “net wealth” are defined under the Danish Estate Tax Act (Dødsboskatteloven) – for instance, that real property covered by the “detached-house rule’’ (parcelhusreglen) does not count toward the asset threshold, but does count toward the net wealth calculation.
There can be significant advantages to tax planning within the estate, and it is equally important to ensure that the estate’s tax return is accurate, providing the necessary certainty for the heirs in concluding tax matters.
You may read more about estate taxation here.
From a time and resource perspective, estate administration is far from a standard service. The cost of our assistance must therefore always be agreed individually.
It is naturally important that the bereaved have a clear agreement, as well as a fixed price or an estimate, to rely on. At PrivatRevision, we aim to provide advice and services of the highest quality at competitive rates.
It cannot always be assumed that an estate of modest size is inexpensive to administer, or that a larger estate with well-organized affairs must necessarily be costly to handle. Unlike many other advisors, we primarily base our fees on the expected scope of time and resources required for the administration. Many clients consider our services competitive in relation to smaller estates, and very competitive for estates with wealth moderately above average.
Examples of pricing for full estate administration assistance include:
Example 1:
Case: Estate with 2 heirs, cash DKK 200,000 + residential property valued at DKK 2 million with DKK 1 million mortgage. Net wealth DKK 1.2 million. No will.
Tasks: Communication with heirs, private probate, opening balance, probate notice, tax optimization of estate and estate duty, assistance with property sale, estate accounts, distribution to heirs, ongoing advice.
Price: DKK 24,000 incl. VAT
Example 2:
Case: Estate with 3 heirs, shares and securities valued at DKK 3 million + residential property valued at DKK 3 million with DKK 1 million mortgage. Net wealth DKK 5 million. Will in place.
Tasks: Communication with heirs, private probate, opening balance, probate notice, tax optimization of estate and estate duty, assistance with property sale, estate accounts, distribution to heirs, ongoing advice.
Price: DKK 54,000 incl. VAT
Example 3:
Case: Estate with 2 heirs, cash and minor assets DKK 1 million + debt-free residential property DKK 1.5 million + holiday home valued at DKK 1 million with DKK 600,000 mortgage. Net wealth DKK 2.9 million. No will.
Tasks: Communication with heirs, private probate, opening balance, probate notice, tax optimization of estate and estate duty, assistance with property sale, estate accounts, distribution to heirs, ongoing advice.
Price: DKK 38,000 incl. VAT
Example 4:
Case: Estate with 4 heirs, cash DKK 500,000, securities DKK 1.8 million, sailboat DKK 1 million + residential property valued at DKK 5 million with DKK 2 million mortgage. Net wealth DKK 6.3 million. Will in place. Surviving spouse retains estate undivided.
Tasks: Communication with heirs, private probate, opening balance, probate notice, tax optimization of estate and estate duty, assistance with property sale, estate accounts, distribution to heirs, ongoing advice.
Price: DKK 68,000 incl. VAT
Example 5:
Case: Estate with 1 heir, cash DKK 3 million, art collection valued at approx. DKK 1 million, vehicle valued at DKK 500,000 + debt-free residential property valued at DKK 10 million. Net wealth DKK 14.5 million. Will including restricted inheritance (båndlæggelse).
Tasks: Communication with heirs, private probate, opening balance, probate notice, tax optimization of estate and estate duty, assistance with property sale, estate accounts, distribution to heirs, implementation of restricted inheritance under the will,
ongoing advice.
Price: DKK 58,000 incl. VAT
The above prices are examples only – please contact us for a specific quotation
We can, of course, also provide assistance with individual elements of the above, where estate administration is already in progress, or where heirs or the family’s lawyer are already handling certain matters – including practical advice outside our direct area of expertise, but where we know what steps must be taken and whom to contact