Advance on inheritance – how gifts to children affect the inheritance
Share
Fact check completed: October 1, 2026 · The Swedish Inheritance Code, chapters 6–7.
As a general rule, a gift to a child shall be deducted as an advance on inheritance. The purpose is for the gift to be taken into account when the child's future inheritance share is determined. However, the donor may stipulate that the gift shall not be an advance, and the law provides important exceptions for, for example, customary gifts and costs for a child's maintenance and education.
The general rule in chapter 6, section 1 of the Inheritance Code
What the decedent has given to a forced heir (bröstarvinge) during their lifetime shall be deducted as an advance on inheritance, unless otherwise stipulated or if the circumstances indicate a different intent.
Forced heirs are the decedent's descendants according to the order of inheritance. Children come first. If a child has died before the decedent, the child's own children may take their place, meaning it cannot be said that a gift to grandchildren can never be affected by these rules.
Gift to an heir other than a forced heir
For other heirs, the starting point is the opposite. A gift shall then only be deducted if the donor has stipulated it or if, due to the circumstances, it must be assumed that such was the intent.
Which gifts should normally not be deducted?
Chapter 6, section 2 contains important exceptions. Costs incurred by a parent for a child's maintenance and education shall not be deducted if the parent thereby merely fulfilled their maintenance obligation. Nor shall customary gifts be deducted if their value is not disproportionate to the donor's financial circumstances.
Can the donor decide that the gift shall not be an advance?
Yes. It is often wise to state this directly in the deed of gift, for example: "The gift shall not be deducted as an advance on the recipient's inheritance from the donor."
If the gift is instead to be an advance, that can also be explicitly stated. Clarity reduces the risk of heirs having to attempt to prove, long after the fact, what the donor actually intended.
How is the advance valued?
According to chapter 6, section 3, the general rule is that the deduction is made according to the value of the property when the recipient received it, unless the circumstances give reason for something else.
For a monetary gift, the amount received is therefore normally a clear starting point. For real estate, stocks, or other property, historical valuation can become more complicated.
Calculation example: two children and a previous gift
Assume a parent has two children, Alma and Björn. Alma has previously received 1,000,000 SEK as an advance on inheritance. When the parent passes away, 4,000,000 SEK remains in the estate.
- When calculating shares, the advance is added to the estate: 4,000,000 + 1,000,000 = 5,000,000 SEK.
- Two equal inheritance shares become 2,500,000 SEK each.
- Alma's previous advance of 1,000,000 SEK is deducted from her share.
- Alma therefore receives 1,500,000 SEK from the estate and has received a total of 2,500,000 SEK from the parent.
- Björn receives 2,500,000 SEK from the estate.
The old way of first deducting the gift from the existing estate and then dividing the rest equally is therefore incorrect. Chapter 6, section 5 is instead based on adding the advance when calculating the inheritance shares.
If the gift is explicitly not an advance
Using the same figures but with a clear condition that Alma's 1,000,000 SEK is not an advance on inheritance, the remaining 4,000,000 SEK is divided normally according to the order of inheritance. Alma and Björn then receive 2,000,000 SEK each from the estate, which means that Alma has received more from the parent in total during their lifetime + inheritance.
Does the recipient have to pay back if the advance is larger than the inheritance?
As a general rule, no. Chapter 6, section 4 states that the recipient does not have to return the surplus if the advance exceeds the future inheritance share, unless a repayment obligation was agreed upon when the advance was provided.
What happens if the recipient of the advance dies first?
Chapter 6, section 6 regulates certain cases where a forced heir's descendants take their place and the advance is to be deducted from their inheritance. Therefore, older gifts can have significance even when the original recipient has died before the donor.
Advance on inheritance and statutory share protection
A gift that is not to be deducted as an advance on inheritance is not automatically protected from all future inheritance law issues. Chapter 7, section 4 contains enhanced statutory share protection when a gift in its purpose is equivalent to a will, for example, certain gifts made close to death where the donor has in practice arranged the succession.
A forced heir who wants to assert such a right must initiate proceedings within the statutory time limit, normally one year from the conclusion of the estate inventory after the decedent.
The deed of gift should answer three questions
- Is the transfer a gift without a repayment obligation?
- Should the gift be deducted as an advance on inheritance or not?
- Should the gift be the recipient's separate property?
The three questions are legally separate. A gift can, for example, not be an advance on inheritance but still be separate property, or vice versa.
Mallbutiken's Gift Deed Money – Template costs 29 SEK and includes space to document the gift and relevant terms.
For practical documentation, also read Gift deeds for money and Separate property in monetary gifts.
