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Succession

The units of the voluntary funded pension can be inherited. In order to start the succession proceedings, the successors first have to contact a notary. After the notarized succession certificate has been received, the successors have to file an application to a suitable bank office for inheriting the units. In case of succession of the units of a pension fund it is possible to:

  • transfer the units to the securities account of the successor or
  • cash out collection of the inherited units and receive money.

Documents to be submitted to the bank:

  • application,
  • 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.

Income tax must be paid on cashed out units.

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.

In order to inherit an insurance contract of the supplementary funded pension, the successors have to contact a notary. After the notarised succession certificate has been received, the successors have to file an application to the insurance company.

  • If the insured person dies before the beginning of the payments from the pension, the successors will receive the insurance indemnity consisting of the contributions, from which the expenses established in the contract will be deducted.
  • If the insured person dies during the payments period, the beneficiary will receive the pension established with the insurance contract until the end of the guarantee period. To receive the payments, the beneficiary has to contact the insurance company.
The payments made to the successors who are natural persons on the basis of all different products are taxable with the income tax of 20%.