Outdated regulations and weak protection in handling estates
When a person dies, their estate must be administered, managed and distributed. The Swedish National Audit Office’s audit reveals that regulations are outdated – some parts dating back to the 18th century – and difficult to understand. Moreover, estates lack adequate protection against unscrupulous actors.
The Swedish National Audit Office has examined central government efforts on the administration, management and distribution of estates. The overall conclusion is that, while efforts are largely effective based on existing regulations, the regulations themselves are inadequate for prompt and smooth estate management and for ensuring the rights of all those concerned.
“To first lose a close relative and then have to shoulder responsibility for a complex process that may involve substantial assets or liabilities can be overwhelming. The Government should investigate how the regulations can be improved to make the process more efficient and secure,” says Deputy Auditor General Claudia Gardner Morner.
Furthermore, the system largely depends on the beneficiaries (usually relatives of the deceased) assuming responsibility for administration, management and distribution of the estate. This can sometimes be difficult because the regulations are antiquated and not adapted to an altered society. For example, it is not possible to submit an estate inventory digitally.
Oversight and supervision of estate administrators appointed by the district court require action on the part of the beneficiaries, about which they often lack sufficient knowledge. This leads to a lack of oversight and supervision, and consequently, a lack of comprehensive information on how estate administrators are doing their job.
It is commonplace for beneficiaries to hire someone to handle the estate. However, estates are not covered by consumer legislation, despite usually consisting of private individuals without expert knowledge. Unscrupulous or ignorant actors can cause significant financial damage, and there is little opportunity to bring the matter to justice at a reasonable cost.
“The only recourse is to sue the service provider based on a law penned in the 18th century – with the risk of losing in court and having to pay the opposing party’s court fees. That bar is rather high,” says Tobias Hamfelt, project leader for the audit.
The audit findings also show that
- the Swedish Tax Agency’s processing times for estate inventories have been unnecessarily long, which the agency should have addressed earlier
- the district courts lack adequate knowledge on estates and estate administrators’ specific competences when they are appointed
- The Legal, Financial and Administrative Services Agency’s checks on trustees’ time reporting is too limited.
Recommendations in brief
Our recommendations to the Government include investigating:
- how oversight and supervision of estate administrators’ management can be made more effective
- better protection related to estates’ purchase of services involving estate administration, management and distribution
- how estates can obtain greater opportunities for alternative resolution in disputes over goods and services.
It is also recommended that the Government take the measures necessary to enable electronic submission of estate inventories.
It is recommended that the district courts always collect the information necessary to enable the appointment of estate administrators who have the skills and experience required for the estate.
The Swedish National Audit Office also directs recommendations at the Swedish Tax Agency and the Legal, Financial and Administrative Services Agency.