Estate settlement - rights and obligations of the estate towards TR

The estate shall assume all financial obligations incumbent on the deceased. The rights and obligations of the estate of the deceased and heirs towards the TR shall be governed by the division of the estate.

It is important that the estate agents or heirs submit a tax return for the estate to the tax office. The SIA recalculates payments for the year on the basis of a certified tax return and when calculating the amounts may be indebted or credited.

Debt arises from the recalculation of an estate

If a debt arises from the recalculation of an estate, TR is obliged to collect the claim from the estate or the heirs, regardless of whether the debt was incurred before or after the settlement was concluded.

A claim is not waived even if the administration of the deceased's estate has been concluded; responsibility for payment of the debt rests with the heir.

A claim is waived if:

• The claim is less than ISK 1,000 before tax.

• The estate is declared to have no assets pursuant to Article 25 or 26 of the Act on Estates.

• TR has not filed a claim within the claim filing period for public administration of an estate.

• The claim was incurred after the claim filing period expired and the estate administrator therefore does not recognise the claim in the public administration of the estate.

Agreement on reimbursement of estate debt

You can negotiate the repayment of debt at the death estate and payment can be spread out for up to 12 to 36 months.

For more information or to negotiate a refund you can contact innheimta@tr.is

A credit is created by the recalculation of the estate of the deceased

If a credit is generated by the recalculation of the estate at death, the heirs are entitled to receive it.

How is the credit paid out:

• A credit is deposited to a registered bank account of the deceased if it has not been closed.

• If an account has been closed, the estate agent must provide TR with information on a new bank account.

• If there is no agent for the estate or the estate is completed, one heir must obtain the authority of other heirs to receive a deposit.