Updated: June 7, 2025 • Reading time: about 12 min

Table of contents

• Introduction
• Historical background
• The main rule in the Swedish Inheritance Code, Chapter 6, Section 1.
• When is a gift classified as an advance?
• How to formulate the clause
• Calculation example with sibling distribution
• Common misunderstandings
• Step-by-step: enter (or exclude) advance payments on inheritance
• Checklist
• Summary

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Introduction

Parents who want to support children with cash contributions, study abroad or start a business often donate larger sums of money. What many forget is that Swedish law automatically considers such a gift to a direct heir as an advance on inheritance - unless otherwise stated. This can create unexpected inheritance disputes far in the future. In the guide below, we explain the concept of advance on inheritance , show how to write the clause in a Gift Deed and what the consequences of different choices are.

Historical background

Gifts and inheritance since the 1734 law

Even during the Great Power era, the legislator wanted to protect siblings from becoming “disinherited” when parents gave large portions of their wealth to one of their children during their lifetime. The principle continued into the 1958 Inheritance Act and is still valid today. Since Sweden has had no gift tax since 2005, the rule on advance payments on inheritance has gained greater practical significance – it is now the main method for adjusting imbalances between siblings.

The main rule in the Swedish Inheritance Code, Chapter 6, Section 1.

“What the testator has given to the heir during his lifetime shall be settled as an advance on the inheritance, unless otherwise stipulated when the gift was made…”

The legal text means that the presumption is always a deduction. If you want the gift not to be deducted, you need to state this clearly in writing when the gift is given – preferably in the same document that describes the gift, such as your Gift Deed .

When is a gift classified as an advance?

Scenario	Advance?	Justification
Cash gift for children	Yes	Heirs in the line of succession are covered by the presumption.
Cash gift to grandchildren	No	Not exactly a direct heir.
Annual Christmas gift < 5,000 SEK	No	Social custom, small amounts.
Gift with explicit “no advance” clause	No	Freedom of contract beats presumption.

How to formulate the clause

Two simple options

1. To be settled (default)
The gift shall be considered an advance on inheritance according to Chapter 6 Section 1 of the Swedish Inheritance Code.

2. Not to be settled
The gift shall not be considered an advance on inheritance.

Place the text directly after the gift amount in your gift letter and have both parties initial the margin for increased clarity.

Calculation example with sibling distribution

Scenario: two children, 4 M SEK estate

1. Alma receives 1 million SEK as a gift without a clause .
   In the event of death, 4 million SEK minus 1 million SEK = 3 million SEK is divided between Alma and Björn.
   Result: Alma 1 M + 1.5 M = 2.5 M • Björn 1.5 M.
2. Alma receives 1 million SEK with “no advance” .
   The estate divides the entire 4 million SEK equally.
   Result: Alma 1 M + 2 M = 3 M • Björn 2 M.

The difference is 500,000 SEK – therefore a clear clause is crucial for family peace.

Common misunderstandings

• “Small amounts never count.” – Small gifts ( CivR 2021 ) are often interpreted as customary, but the limit is not fixed. Write a clause anyway.
• “An email is enough as proof.” – Decent, but a signed gift deed carries much more weight in probate.
• “I can change my mind later.” – Theoretically via a new agreement, but difficult to prove expression of will retroactively.

Step-by-step: enter (or exclude) advance payments on inheritance

1. Open your Gift Deed in Word.
2. Scroll to the “Advance on inheritance” section.
3. Tick ​​either “shall” or “shall not”.
4. Cross out the box that does not apply to avoid double interpretation.
5. Have both the giver and recipient initial in the margin.
6. Save as PDF and print two copies – one for each party.

Checklist

Have you analyzed future inheritance distribution?
Are the amount and currency (SEK) correct?
Is the correct checkbox selected?
Are there signatures + dates?
Is the document stored digitally?

Summary

Advance on inheritance is not just a formality – it affects how your future inheritance is distributed. By marking the right clause in the gift deed, you eliminate unnecessary conflicts and give your children clear rules of the game. Do you need a ready-made, legally checked template in English with checkboxes for both advance on inheritance and separate property ? Download our template for 49 SEK here and secure future family peace today.