Many Danes let their inheritance go to the state – without knowing it

Many Danes risk unintentionally letting their inheritance end up in the state treasury because they do not have control over the inheritance rules or fail to draw up a will. This particularly affects unmarried cohabiting couples, who have no legal right to inherit from each other – even after many years together.

According to Anne Kjærhus Mortensen, attorney at Ret&Råd, it is a widespread misconception that cohabiting partners automatically inherit from each other:
-“If you have not made a will and you pass away before your partner, the partner does not automatically inherit and may therefore risk losing the possibility of remaining in the shared home or losing access to joint assets. Very few people are aware of this.”

The Danish Inheritance Act operates with three classes of heirs. The first class includes spouses and children, including grandchildren if a child has predeceased. The second class includes parents, siblings, as well as nieces and nephews. The third class consists of grandparents and their children, that is, the parents’ siblings. If there are no heirs in any of these groups, the inheritance goes to the state. Cousins and their descendants have no right of inheritance.

A will makes it possible to decide for oneself who is to inherit – and under what conditions. For example, an inheritance can be made separate property so that it is not divided in the event of a divorce, or it can be tied up so that young heirs do not receive the full amount at once.

-“You also have the option to tie up the inheritance so that young heirs do not receive everything in one lump sum. This allows for a more secure and responsible administration – for example, with support for housing or education,” explains Anne Kjærhus Mortensen.

Inheritance law can also be surprising in the opposite direction. Biological children whom the deceased may never have had contact with are, as a rule, entitled to inherit – as are certain children adopted before 1957.

-“Many are surprised that biological children one may not know or have had contact with can have a claim to an inheritance. This clearly shows how important it is to get one’s inheritance situation in order in good time,” says Anne Kjærhus Mortensen.

A will is therefore an important tool to ensure that an inheritance is distributed in accordance with one’s own wishes – and to avoid assets ultimately going to the state.