Official estate exchange

An estate is divided into official divisions when there are no conditions for the completion of the division by other means or if the heir/heir wishes to proceed in such a way.

Each heir shall have the right to demand that public exchanges be carried out, and it shall be sufficient for one of them to request this.

The district court shall rule on whether the estate is to be officially subdivided and appoint an executor for the estate.

Who can claim public settlement:

The heirs and sheriff may demand that the estate be officially divided into estates before the district court.

How public exchanges are requested:

A written request for public exchange must be submitted to the district court in the district where the deceased person was domiciled.

A request for public exchange to the district court must be accompanied by the following documents:

• an overview of the progress of the exchange with the district commissioner.

• a copy of all the case documents at the magistrate's office.

• certified copies of wills

• other documents supporting the claim.

A copy of the public exchange requirement shall be sent to the district commissioner.

Career

The District Court shall examine a claim for official exchange of an estate and summon the parties to the case to a court hearing on the matter.

The judge shall rule on whether the estate will be officially subdivided and appoint the trustee in bankruptcy for the estate.

If a claim for public exchange is challenged, a dispute may have to be brought against it in the district court.

The trustee in bankruptcy shall call the parties to a meeting of the parties to the bankruptcy proceedings as soon as possible and inform the parties of the continuation of the bankruptcy proceedings. The trustee in bankruptcy shall represent the estate and take any measures that may be taken in respect of the estate.

The heirs may declare to the trustee in bankruptcy that they will not accept responsibility for the obligations of the estate.

Public exchanges may be concluded by the trustee allocating inheritance to the heirs. The trustee in bankruptcy shall submit a report on the inheritance, together with a bill for distribution from the estate to the district commissioner, and pay the inheritance tax.

If the assets of the estate do not cover debt, the estate is treated as a bankruptcy estate. The trustee in bankruptcy shall notify the district court in writing of the completion of the bankruptcy proceedings and send the district commissioner a copy.

Public exchange at the request of heirs

An heir may himself send a request for public exchange to the district court.

It is desirable that an heir seek assistance from a lawyer to prepare a claim for the official exchange of an estate on death.

For example, the reasons why an heir requires a change of official authority may be that:

• the heirs may not jointly request a licence to make a private settlement.

• an heir does not wish to take responsibility for the debts and obligations of the deceased.

• heir does not consider it possible to resolve disputes that have arisen in private dealings.

An heir claiming public settlement may have to provide security for the costs of the settlement.

Public exchanges at the request of the district commissioner

The heirs shall have 4 months from the death to determine how the estate shall be divided. Heirs may, at that time:

• declare the estate without assets.

• jointly request a patent exchange licence.

• request permission to sit in an unallocated estate (only the spouse).

If the heirs have not begun the process of heir to the bankruptcy proceedings within 4 months, the district commissioner shall send a letter of challenge to Iceland.is.

The District Commissioner may have to demand official division of the estate if 4 months have passed since the death and the heirs have not been challenged to proceed with the division of the estate.

Public exchange costs

A registration fee of ISK 20,000 shall be paid to the District Court when a petition for public exchange is submitted.

The remuneration of the trustee in bankruptcy shall be paid out of the assets of the estate, if any, by the second petitioner.