Inheritance and Post-Death Bureaucracy in Finland: Digitalization Alone Is Not Enough

In Finland, the loss of a loved one means not only an emotional devastation for those left behind but also a highly burdensome bureaucratic process. The more diverse the estate of the deceased or the greater the number of heirs, the more complex and exhausting this process becomes. A legal framework that has accumulated over decades, with new obligations constantly added to it while old rules are not boldly removed, makes things even more inextricable. Although institutions treat a person's death almost as if it were an unexpected surprise, it is evident that state institutions and banks already possess the necessary population and financial information. This situation clearly demonstrates that merely digitalizing the current system is insufficient; it requires a radical simplification and automation.

The first and biggest challenge encountered in the process is obtaining a continuous and complete genealogy document that officially proves the family tree of the heirs. Family members are forced to chase down these documents separately from churches and the Population and Digital Data Agency. Without a ready genealogy, the administration of the estate comes to a complete halt, preventing those left behind from paying bills, terminating lease agreements, and clarifying the estate. This blockage causes the process to drag on for months, and even pre-prepared power of attorney documents are of no use at this stage. The slow processing of authorities and the document barrier impose extra stress on grieving families.

Another major obstacle in inheritance procedures is the impasse of collecting power of attorney and signatures self-imposed by each institution. Every bank, insurance company, and service provider demands its own unique forms bearing the exact signatures of all heirs. If one of the heirs lives abroad or if the number of heirs is large, collecting signatures on dozens of documents becomes logistically almost impossible. As an even more absurd situation, while some institutions refuse to share information unless an inheritance declaration is provided, filling out the inheritance declaration itself requires that very information to be supplied. This vicious cycle causes families to get stuck between institutions and understandably suffer grievances.

The inheritance services offered by current digital platforms and banks, unfortunately, do not alleviate this burden either. Online systems generally have a complex structure, requiring the same paper documents to be rescanned and data to be re-entered every time a login is made. Long queues in telephone call centers and variable staff quality make the process even more grueling. When institutions slow down or avoid helping families, they often use data protection laws like GDPR as a shield. Despite all this, during the genealogy and inheritance declaration stages, families are forced to share the most sensitive information, including identity numbers and secret account details, with dozens of different institutions.

In June, the Finland government introduced a new legislative proposal aimed at facilitating inheritance processes and inheritance taxes through digitalization and artificial intelligence tools. The primary goal of this innovative step is to implement a real-time heir registry and an electronic inheritance declaration system by 1 Şubat 2027. However, when drafting the law, not only theoretical experts but also families who practically handle these matters and experience grievances must be listened to. To ensure the new system does not merely transform the old paper chaos into a digital screen obligation, data sharing must be automated, and institutions should only receive the necessary minimum information. A society's true level of development should be measured by how much it protects and facilitates its citizens during their most vulnerable and difficult moments.