Estate Without Assets

An estate is considered without assets if the deceased did not own property exceeding funeral costs at the time of death. Assets include real estate, vehicles, bank deposits, and more. Only the total value of the estate’s assets is considered, without regard to debts. The deceased's assets will be used to cover funeral expenses.

An heir may be granted permission by the District Commissioner to obtain information about the estate's assets and debts, for instance, from banks. The deceased’s tax return contains an overview of their assets. When an estate is settled as assetless, heirs bear no responsibility for the deceased’s debts.

Confirmation of No Assets

An heir or death notifier must submit a declaration of no assets to the District Commissioner within four months of death. The declaration can be filled out and signed electronically. The following documents must be submitted to confirm the lack of assets:

• Overview of the status of bank accounts at the time of death

• Other relevant documents, such as a vehicle appraisal, if applicable

Once the District Commissioner has received the declaration of no assets, they will assess whether the conditions to settle the estate as assetless are met.

If the estate has real estate or vehicles with outstanding loans, the District Commissioner must assess whether the property can be transferred to cover funeral costs. The person declaring the lack of assets must take responsibility for any loans on the property.

If the conditions are met, the District Commissioner will issue a confirmation of no assets. The person who declared the lack of assets will receive all of the estate's assets to cover funeral costs. Afterward, they may, for example, sell the deceased's vehicle.

Confirmation is sent digitally to the heirs via island.is.

There is no fee for the confirmation of no assets.

If the deceased was eligible for a funeral grant, the confirmation of no assets can be submitted to a union or municipal social services.

What Happens if the District Commissioner Does Not Approve the Declaration?

If the District Commissioner determines that the estate’s assets exceed funeral costs, heirs must take one of the following actions: