Successor Is a Legal Entity
Since 01.01.2014, legal entities have the right to inherit the units of the mandatory funded pension.
In case of succession, if the successor is a legal entity, the legal entity may take the inherited units out in cash.
The Estonian pension register does not withhold income tax from the payments or declare them to the Tax Board. It is the duty of the legal entity to submit the tax declaration.
Documents to be submitted to the bank:
- application form signed by the authorized representative of the legal entity,
- copy of the notarized succession certificate,
- agreement on the distribution of the estate (if there are more successors).
The successors must submit a relevant application and a copy of the notarized succession certificate to the relevant bank office. The bank will send the necessary documents to the Estonian pension register.
If there are several successors, they are the joint owners of the estate and they must dispose of it jointly. Due to the fact that a unit of a pension fund may not be owned by more than one person at a time, the successors must conclude an agreement to divide the units that are part of the estate. In order to divide the units, an agreement may be concluded in one of the following manners:
- all successors are present at the same time and express their will jointly or
- submit an agreement on dividing the estate, which may be notarized.
If successors are natural persons and legal entities together, they must rely on their respective conditions.
A foreign document that is to be used in Estonia, must be legalized at the foreign ministry or foreign representation of the foreign state where the document is issued and then at the foreign representation of the Republic of Estonia (embassy) or at the consular department of the Foreign Ministry.