Successor Is a Natural Person
In case of inheritance, if the successor is a natural person, the inherited units may be transferred to the successor’s pension account or cashed out. It is also possible to transfer a part of the inherited units to the pension account of the successor and cash the other part out on the basis of the same succession application. Income tax must be paid on cashed out units.
Documents to be submitted to the bank:
- 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.
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.
Successor has subscribed to the Mandatory Funded Pension
When you as the successor have subscribed to the mandatory funded pension (is an obligated person), you may apply
- for redemption of all the inherited pension fund units or
- to transfer them to his or her own pension account.
If you transfer the inherited units to your pension account, you will be able to receive the inherited units as your pension contributions at a more favorable income tax rate when you reach retirement age from 2021 (or if you have less than 5 years left until retirement age).
Pärija ei ole kohustusliku kogumispensioniga liitunud
Kui pärija ei ole kohustusliku kogumispensioniga liitunud (ei ole kohustatud isik), on tal õigus nõuda osakute tagasivõtmist. Selleks tuleb esitada sobivasse pangakontorisse vastav avaldus ning notariaalse pärimistunnistuse koopia. Pank edastab vajalikud dokumendid pensioniregistri pidajale.
NB! Osakute pärimise väljamaksed füüsilistele isikutele maksustatakse 20% tulumaksuga.
If the successor has not subscribed to the mandatory funded pension (is not an obligated person), he or she may request the redemption of the units once. For this, the heir has to submit a relevant application and a copy of the notarized succession certificate to the suitable bank office. The bank forwards the documents to the registrar of the Estonian pension register.
Payments of the inherited units to natural persons are taxed with income tax.