It traced its legitimacy through constitutional succession to the last Estonian government in power prior to the June 1940 Soviet invasion and occupation of the country.

Sham elections were held on 14–15 July 1940 for a "People's Riigikogu," in which voters were presented with a single list dominated by communists.

This election is now considered illegal and unconstitutional, since it was conducted on the basis of an electoral law that had not been approved by the upper chamber, as required by the Estonian constitution.

On September 18, 1944, Uluots, suffering from cancer, named Otto Tief the acting prime minister and appointed a government which consisted of 11 members.

Tief assumed office in accordance with the constitution and took the opportunity with the departure of the Germans to declare the legitimate Estonian government restored.

Tief's government, however, failed to keep control, as Estonian military units led by Johan Pitka clashed with both Germans and Soviets.

After Uluots died on January 9, 1945, August Rei, as the most senior surviving member of the government, assumed the role of acting head of state.

This group was led by Alfred Maurer, who had been second deputy chairman of the National Council of Estonia prior to 1940.

Maurer was elected Acting President of the Republic (Vabariigi Presidendi Asetäitja) in exile on March 3, 1953, in Augustdorf, Germany.

Even with regard to Estonia, the legations were the primary instrument for the conduct of diplomacy and for administering the daily matters of state (such as issuing passports).

As primary diplomatic authority was exercised by the Estonian consulate in New York City,[8] the government-in-exile's role from Oslo was, to a great degree, symbolic in nature.

Three Estonian ships (Otto, Piret, and Mall) and two from Latvia (Rāmava and Everoja) chose a neutral port in Ireland instead.

Ivan Maisky, the Soviet Union's ambassador to the United Kingdom, applied to the High Court in Dublin for possession of the ships.