Inheritance
Property from an inheritance
Have you inherited a property? Possibly together with other people and want to know what to do next? Then you have come to the right place.
As an experienced partner for all questions concerning real estate in southern Germany, we are actively at your side in often difficult times.
How high is the inheritance tax? What are my rights and obligations in the community of heirs? What laws and deadlines must be observed and do I need a certificate of inheritance?
Since such an inheritance is rarely something commonplace, heirs often have many questions.
What do I have to do if I inherit a house?
It is possible that the deceased has left a will that regulates what happens next. However, only you can ultimately decide what to do with a house that you have inherited. If you are part of a community of heirs, you will have to come to an agreement with the other participants on what to do with the property. It is conceivable that you could use it yourself, sell it or rent it out.
Do you want to accept the inheritance or would you rather reject it?
But first you should ask yourself whether you want to accept the inheritance at all. If the property is over-indebted or you cannot afford the financial outlay that a house entails, you should think about renouncing the inheritance.
Another important factor to consider is whether or not inheritance tax is payable. The amount depends on your degree of relationship to the deceased and the value of the property. Depending on this, you may be able to claim certain allowances.
However, in order to disclaim the inheritance, you must submit a declaration to the probate court that you do not wish to accept the inheritance. Attention: If you do not do this and let the deadline of six weeks pass after you have learned of the inheritance, this will be assessed as acceptance of the inheritance!
Details, such as the legal succession and contact with the tax office, must also be observed.
If you wish to occupy the house yourself
In this case, you must first accept the inheritance. If you are part of a community of heirs, you must then pay out the co-heirs. Before you decide to do this, you should be sure that the property fits your living situation and that you are willing and able to bear the moving costs, as well as any renovation and maintenance costs.
Renting out the real estate
You don’t want to sell your house or flat, but owning it is out of the question for various emotional, location or size reasons? Then renting out the property may be the right choice. Here, too, you have to consider possible renovation costs and, in the long term and depending on the location, a possible reduction in the value of the property. As a landlord, you are then also acting within the framework of tenancy law and must be aware of the legal and financial risks of renting out. Furthermore, not every property is suitable as a rental property. Especially in the case of single-family houses, it is seldom possible to generate significant returns.
Final: The sale of the real estate
It is often better to sell the inherited property. There are many reasons for this. Especially if there are several heirs, disputes can be avoided. In this way, the proceeds can be divided fairly among all of them.
In order to avoid possible accusations of enrichment during the sales process, it is advisable to consult a specialised estate agent and to have the market value of the property seriously determined by a professional (please not from an online portal). In the course of marketing, it also makes absolute sense to consult a real estate agent with local networks and expertise. Also to have a neutral mediator between the parties, if necessary.
The last solution in case of disagreement – the partition auction
If no agreement can be reached in a community of heirs on how to proceed with the inherited property, the last option is a partition auction. In this case, one of the heirs can auction off his or her entire inheritance share, which the others can then purchase at auction.
The heir who seeks immediate use of the property is generally given priority. In this way, an inheritance that is difficult to divide can be quickly made liquid to enable a fair division.
If you have any further questions, please do not hesitate to contact us and we will advise you in full. Of course, we also work together with specialist lawyers for inheritance law. We are also happy to offer you added value in the course of clearing out, renovations etc.
Do you need further advice or information on an inherited property? Then please feel free to contact us for non-binding advice.
