Private division
Heirs usually decide to divide estates privately. In order to divide an estate privately:
- at least one of the heirs who has attained their maturity (family heir and/or devisee) must assume full responsibility for the debts of the deceased
Devisees who inherit a limited bequest of little value, may not exercise the right to assume responsibility for the debts.
Exceptions:
- If the deceased leaves assets worth less than NOK 334,431, the heirs do not need to pay more debts than what the deceased has left after the funeral has been paid for.
Spouses who want private division
Spouses who meet the criteria to retain undivided possession of the estate, but who do not wish to do so, can take over the estate for private division.
Heirs who are not of age or have been deprived of legal capacity
If an heir is younger than 18 or has been deprived of legal capacity, responsibility for the deceased’s debts is limited to the value of the inheritance received by the heir. The heir’s legal guardian must give their consent in the case of private division.
Time limit for private division
Heirs can take over an estate for private division within 60 days of the death. A district court can set a different time limit. Heirs who do not wish to assume responsibility for the deceased’s debts can consent to the district court issuing a certificate of probate before 60 days have passed. The consent must be provided in writing.
Estates with limited assets
If an estate is worth less than NOK 150,000, the heirs can take a simplified approach. The district court determines whether the value of the estate falls under the provision and who will have the funds at their disposal.
The person who has the funds at their disposal will receive a power of attorney from the district court. Power of attorneys can be granted to spouses, cohabitants, heirs of the deceased, friends, the person who arranged the funeral or someone else who was close to the deceased.
If you receive such a power of attorney, you must settle any bills to the best of your ability. Once the funeral expenses have been paid, you can choose which bills to pay. You will only be liable for the deceased’s debts up to the amount of funds you receive.
The power of attorney does not restrict the right of the heirs to request public division of the estate.
Undivided estate
In the case of an undivided estate, the surviving spouse or cohabitant postpones settlement and division of the estate.
Spouse's rights
In the event of an undivided estate, the spouse generally has free disposal of both their own property and that owned by the deceased. This includes the right to
- use the assets without the consent of children or other relatives
- to sell assets
- to make gifts (except gifts where the value is disproportionate to the assets)
However, a person in an undivided estate may not use the assets in an irresponsible manner so that the assets are significantly reduced or are in danger of being reduced.
Conditions for undivided estate
A spouse must request to be granted an undivided estate. These conditions must be met:
- The spouse must assume responsibility for the deceased's debts.
- If the deceased had separate children, they must consent. Alternatively, probate can be carried out with the separate children, while probate with the joint children is postponed until later.
- If the deceased had separate property, the spouse and children must agree whether this should be part of the undivided estate.
Inheritance for cohabitants who had joint children
A cohabitant has the right to inherit with joint children. Separate children must consent to an undivided estate. Alternatively, a cohabitant can divide the estate with the separate children and inherit with the joint children.
Cohabitants have fewer rights in an undivided estate than spouses. By law, only these assets are covered:
- joint residence with contents that are used jointly
- car and holiday home with contents used jointly
The scope can be increased or reduced in a will. If it is reduced, the cohabitant must have been informed of the will.
Inheritance for cohabitants without joint children
Cohabitants without joint children may not choose to postpone the division of the estate. Nor is it possible to stipulate this in a will.
Public division
Public division means that the estate is divided by a district court. A trustee will be appointed who will administer the estate. The trustee is authorised to arrange everything in connection with the administration and division of the estate.
Public division at the request of an heir
Public division requires:
- that one of the heirs requests it (it is not a condition that everyone has to agree)
- satisfactory security for the estate expenses
- that any started private division process has not been concluded
- that more than three years have not passed since the death (public division may be permitted later than this in exceptional circumstances)
The estate covers the costs of the administration of the estate. If the estate has not been taken over for private division and has bank deposits or other assets in excess of NOK 45,000, the district court can decide that this is sufficient security.
If the estate has not been taken over for private division, we always require payment of security for the estate expenses. The amount is set by the district court and will only be used if the estate has insufficient funds. Please note the that the total estate expenses will exceed this amount.
Before the district court commences public division, we can call heirs in for a preparatory hearing in which the heirs should try to reach an agreement.
There is no special form for requesting public division. If you want public division, you must ask the district court for this in writing.
Public division decided by the district court
If none of the heirs take over the estate for private division, the district court can decide to carry out public division.
If any doubts arise about who is a rightful heir, the district court can decide to carry out a public division until the question of inheritance has been settled. This also applies after an estate has been taken over for private division.
In both cases there must be sufficient funds in the estate to cover the funeral expenses and division expenses.