Right of possession

Right of possession for real estate can be obtained in several ways.

Often a person acquires tenure of property for example through a will. On the other hand, even if the owner transfers the property to someone else he can withhold right of possession to the property.

Right of possession is different from ownership. The owner of the right of possession is not the actual owner of the property, but the property is owned by another person. The holder of a right of possession is entitled to control over the property and to enjoy its yield, but he / she cannot sell or otherwise transfer the property forward.

Acquiring the right of control through the will

Several of the mutual wills of the spouses are usufruct legacies: the right of use the deceased spouse’s property is wanted to be secured to the widow, even though the actual ownership is already passed on to the children.

The right of possession decreases the inheritance tax

The right of possession decreases the inheritance tax of the heirs. The younger the beneficiary, the greater the tax relief.

The widow does not have to pay inheritance tax on the right of possession. The children will only receive the property after the death of the widow.

It must be borne in mind that children must pay the inheritance tax immediately, even though they are not yet controlling over the property. On the other hand, the widow cannot sell the property because he does not own it.

Right of possession vs. ownership

The younger the widower, the better it is to consider different types of wills.

Sometimes it is more sensible to bequeath the property to the widow with full ownership so that he/she has the ability to sell the property or for example to change an apartment to a smaller home if he/she chooses.

A spouse may have the right to remain in residence irrespective of possession

It must be remembered that the surviving spouse, according to the Inheritance Code, has the right to remain in the home of the spouses if the widow does not own a corresponding dwelling. The widow has this right even though it is not mentioned in the Last Will.

Retaining control

Arrangements about rights of possessions often involve tax planning.

For example, parents can donate a family summer cottage to their children and retain control over the cottage.

The right of possession is taken into consideration in the amount of gift tax. Parents may continue to use the summer cottage, even though ownership has been transferred to children.

You may also retain right of possession of property in connection with real estate transactions.


Right of possession of property can also be obtained by leasing. The rental of a detached house is governed by the law about renting a dwelling.

Houses in planned area are often on a plot owned by the city. The owner of the leasehold owns the building on the plot and can transfer the rental right forward. The applicable law is Code of Real Estate and lease of land will be compared to real estate transactions.

Farmland and fields can also be rented. This is about lease on land. The lessee is entitled to utilize the property. Land leases are often prolonged.

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