Finnish inheritance planning begins with life insurance, wills, and funeral arrangements, yet far fewer consider inheritance tax implications for their heirs. Recent data shows that while most Finns take steps to organize their estates, inheritance tax remains a blind spot.
A survey by LähiTapiola, involving 1,100 adults across Finland, found that most people start planning for the end of life around age 60. The most common actions include purchasing life insurance (34%), discussing finances and practical matters with family (27%), and drafting a will (19%).
Preparations intensify with age. Among those aged 65–74, 41% had written a will, and 37% had discussed death-related matters with loved ones.
Veera Lammi, director at LähiTapiola’s life insurance division, emphasizes the importance of early planning for financial protection. “For many, this is the time when there are children to support, limited income, and heavy loans. That’s when the financial impact of death is greatest,” she said.
Life insurance is the most common form of preparation in families with children. More than 40% of households with minors hold a policy. Wills and beneficiary instructions often come later, but Lammi warns that they should be reviewed regularly.
“Practical decisions are often postponed, but they shouldn’t be delayed indefinitely. Wills and beneficiary instructions should reflect your current situation, and life insurance payouts should be sufficient,” Lammi said.
Despite growing awareness around financial planning, inheritance tax is largely ignored. Only 13% of survey respondents had tried to estimate what their heirs might owe.
“Inheritance tax is one of the most disliked taxes in Finland, yet very few people have calculated how much they’re leaving behind. Even among those over 75, only one in four had considered it,” Lammi said.
For many heirs, inheritance tax comes as a surprise. The most common solution is selling inherited property, but this is not always practical. Some families use savings or take out loans, with nearly one in ten Finns reporting this approach in previous surveys.
Lammi advises early estimation of potential tax burdens. Options such as early transfers or gift planning can ease the process for heirs and prevent unexpected financial strain.
The survey also revealed clear gender differences. Men were six percentage points more likely to hold life insurance, while women were twice as likely to plan their funerals. Lammi notes that men may focus more on financial security, while women consider emotional aspects. Both approaches play an important role in comprehensive Finnish inheritance planning.
A particularly difficult scenario arises when one parent dies and the only asset is the family home. The child may face a tax bill without the means to pay it, and the property cannot be sold without the surviving spouse’s consent, leaving families in limbo for years.
Finnish inheritance planning is more than life insurance and funeral arrangements. Ignoring inheritance tax can create long-term problems for heirs. Early preparation, clear wills, and understanding potential tax burdens are essential steps for securing your family’s financial future.
