Conditional Inheritance, Inheritance Subject to Certain Conditions

A person who bequeaths an estate may provide instructions or impose conditions regarding the management of the inheritance. This does not apply to statutory heirs except for one-third of the estate. Statutory heirs include a spouse and descendants.

If there is concern that a statutory heir may mismanage or irresponsibly handle their inheritance, for instance due to mental incapacity or other reasons, it is possible to request that specific conditions or restrictions be placed on the management of the inheritance. Conditions cannot be placed on the statutory inheritance unless there are compelling reasons, which must be supported by documentation such as medical records. Any conditions imposed on the inheritance are lifted upon the heir’s death and do not extend to their descendants.

Conditions

The conditions can include, for example:

• The appointment of a financial guardian over the inheritance.

• That the heir receives a certain amount of the inheritance at regular intervals.

• That the inheritance can only be used for purchasing real estate, paying rent, and so forth.

These conditions are only valid if approved by the District Commissioner of Northeast Iceland. An overview of the conditions intended to be imposed on the inheritance must be submitted to the District Commissioner, along with justifications for their imposition.

Lifting of Conditions

The District Commissioner is authorized to partially or fully lift conditions on the inheritance once the heir has reached 21 years of age and can demonstrate that the conditions are no longer necessary. The heir must request the lifting of the conditions from the District Commissioner of Northeast Iceland and submit the necessary documentation.

The decision of the District Commissioner may be appealed to the Ministry of Justice within three months of the decision.