taxation on bank account

[Oombongo]

say, I have been saying 1000€/month in my account for 20 years. The amount is obviously after paying taxes.
Then I suddenly pass away..
If my next-to-kin (brother, sister, boyfriend, girlfriend, husband, wife, dog, cat, etc etc..) tries to withdraw the money then would they be taxed on this amount?
(in principle it shouldn't as the tax has already been paid but better to get an idea before jumping on the conclusion.

[Rip]

Yes. there is an inheritance tax: http://fi.wikipedia.org/wiki/Perint%C3%B6vero

As such your account would be frozen the moment your bank is notified of your death, and while certain bills can be paid with the money, you can't withdraw money from it without the consent of all parties involved.

[Oombongo]

crap...damn you taxman for taxing which has already been taxed.

thanks for the info by the way.

[Rip]

crap...damn you taxman for taxing which has already been taxed.

thanks for the info by the way.

I don't quite see what is the supposed difference between bank account and other property, and it is not like the tax collector wouldn't be trying to take his cut on almost all transactions, never how many "times" he has done it before.

[ajdias]

There's a tax free amount that you can give, but that must happen before you pass away: Vero.fi: Taxation on gifts

[Samer2010]

Before you die, Spend every damn penny that you have saved from your backbreaking work. Why on earth would you let others enjoy the money that you have sacrificed for...

[Honest]

You have paid the taxes so you can use that money freely. You children, dogs and cats havn't paid any tax on that money so how they can be supposed to enjoy free money? It is an income for them on which they have never paid any tax.

[Kai]

To think paying tax once is enough is a common mistake, it is charged each time money changes hands. Money is best kept under your mattress, even the interest rates are as good as a bank!

[Pursuivant]

A few krugers and maria theresias smirking at you from under the mattrass, the mice won't get them.

Also just a random FYI - if you have a joint account it also gets frozen, so for "just in case" situations each person should have their own account without the other party's name on it anywhere as else its just a whole big mess as the banks freeze everything.

[tjawatts]

Until 2006 Finland also had a wealth tax, so think yourself lucky (if you have any wealth).

T

[network_engineer]

so for "just in case" situations each person should have their own account without the other party's name on it anywhere as else its just a whole big mess as the banks freeze everything.

The bank told us, that there are two types of common accounts, one where both can operate the account, and the other where either/or can operate the account (tai). If it is the "tai" tili, then in the case of urgency, either holder can operate the account. Have we been misled?

[onkko]

so for "just in case" situations each person should have their own account without the other party's name on it anywhere as else its just a whole big mess as the banks freeze everything.

The bank told us, that there are two types of common accounts, one where both can operate the account, and the other where either/or can operate the account (tai). If it is the "tai" tili, then in the case of urgency, either holder can operate the account. Have we been misled?

Emergency can be divorce and she can empty account.

[betelgeuse]

I'd never ever go back to holding a common account.

2nd marriage and all finances are 50/50 split right down the middle. Each partner is responsible for this or that service provider and the other partner transfers to the "invoice holder". Invoices pinned to the cork board or written up on the calendar. Just takes a little bit more organisation.

Unless one partner is not working, why the need for joint accounts? If children are involved, same thing... partners keep track of what's been spent over the course of a month and then reimburse the other, necessary.

Having a joint account doesn't mean that you couldn't also have a personal account. All banks I have dealt with allow you to have multiple accounts. I find it easiest to just put all common expenses from a joint account because then no bookkeeping is required.

In the case of divorce, it saves a ton of problems when discussing finances. Alot more control over personal finances and no worries about someone "draining the account".

Then you just close the common account? If both have automated payments to a joint account that are sized to cover running expenses the common account can hardly be drained.

[Honest]

I think it's very useful to have two accounts. One your main account and one as your common account. Common account you can top up in the beginning of every month for that month's estimated expenses, It gives you clear idea how much money is going and where exactly it is going without the headache of keeping record of all the expenses.

[Honest]

Expense review is ofcourse responsible but it is much easier to do it with a shared account where all expenses are saved so you don't need to keep receipts etc. all the time.

We have a shared account in S-Pankki for our monthly expenses. Two cards are connecected with that account, one for each of us. We both transfer our share of expenses there in the beginning of month and then just spend according to our needs. We try to have a little more money than expected expenses and what is left at the end of month is adjusted during next month's top up.