INHERITED PROPERTY – WHAT DO I HAVE TO DO?

Almost every second inheritance in Germany now includes a property. But not every inherited property is a magnificent villa in a prime location – perfectly renovated and paid off. In addition, there are sometimes other factors, such as disputes within the community of heirs, which make it difficult to make a decision about the inherited property. We would be happy to give you an overview here and also advise you personally on your situation as an heir to a property in Berlin and the surrounding area.

Inherited property – what you should do now

As soon as you have been informed that you are the heir to a property in Berlin or part of a community of heirs, you should arrange for a valuation. This will give you the current market value of the inherited property – an important basis for all future decisions. At the same time, it is advisable to take a look at the land register to find out about any easements, encumbrances and mortgages. This information is important in order to decide whether to accept the inheritance.

Can I renounce the inheritance?

Yes, every heir has the option of waiving the inheritance within six weeks of becoming aware of the inheritance. This is only possible by submitting a corresponding application to the competent local court in the last place of residence of the deceased. It is important to note that you can only accept or waive an inheritance in full. This applies to all assets, but also to all debts and obligations.

Incidentally: To accept an inheritance, you don’t have to do anything except let the six-week deadline pass. After accepting, you should update the land register and register yourself as the owner. This is free of charge for you as the heir.

Sole heir or community of heirs?

Strictly speaking, there is no such thing as a sole heir. This is because even if you have been named as sole heir in the will, there are compulsory inheritance shares for relatives in accordance with the statutory order of succession. In this case, the heirs receive their compulsory portions, but you alone may dispose of a property or the estate. The situation is different for a community of heirs. In this case, you decide jointly on the property and its whereabouts. Disputes often arise here because the heirs disagree. For example, if one heir wants to live in the property, he or she must pay out the others.

Your options with an inherited property

Convert and live in yourself, rent out or sell? Deciding what to do with an inherited property is not easy for many heirs – especially as the situation is very emotional anyway. For this reason, it is important to know all the facts (market value, possible proceeds, expected rental income, etc.). If you live in the property yourself, you can avoid inheritance and speculation tax. Renting out the property could help to pay off residual debts – as could selling it, which is often an option chosen by heirs.

If you would like individual support, please arrange a consultation with us.