Es­tate of a de­ceased per­son

The last thing people want to think about when a death occurs in the family is finances, which nevertheless must be addressed soon after the death. What often comes as the biggest surprise is how strict the rules are regarding financial assets and obligations after death, and how rigid the process is.

The first necessary step after an individual's death is to officially report the death by sending a death certificate from a doctor to the district commissioner. Upon death, a legal entity is created—the estate itself—which now bears full responsibility for the deceased's assets and obligations. Often, relatives have assisted the deceased with finances before death and had access to accounts, but all such permissions become invalid upon death as the estate is now the legal entity with all rights.

Since no single heir automatically assumes responsibility for the estate, it is the district commissioner who manages it, and without their permission, neither the assets nor debts of the deceased can be touched.

Permissions that the district commissioner can issue following a death are as follows:

• Authorization to obtain information about the financial status of the estate. With this permission, view-only access to online banking can be granted.

• Authorization to use the estate's funds to pay funeral expenses. This is done by presenting invoices.

• Permission for private settlement. All heirs must agree on the settlement and then take over all assets and debts of the deceased. Often, heirs designate a representative who has the authority to manage the estate.

• Permission for the surviving spouse to remain in an undivided estate. In such cases, the surviving spouse takes over the assets and debts of the deceased and manages them as their own.

• Public settlement. If heirs cannot agree on the settlement, a public settlement of the estate can be requested. However, it is the administrator who has full authority over the estate until settlement is completed.

Once permission has been granted either for private settlement or for a spouse to remain in an undivided estate, the assets and debts in the estate must be addressed.

After permissions have been issued, the following need to be examined:

• Status of all deposit accounts

• Status of all debts

• Status of pension rights and securities

• All guarantees and loan collateral

• Existence of a safe deposit box. If there is a safe deposit box, heirs need to have the key to the box.

When the district commissioner has issued permission for private settlement, all cards are closed and heirs become responsible for assets and debts. It is important to have an overview of obligations so that unpaid bills do not accumulate.

As can be seen, the process following a death is very structured, with rules designed to protect the heirs themselves. Our advisors are always ready to answer questions and assist as much as possible. In more complex cases, it is also good to seek the help of the district commissioner and possibly a lawyer.