INHERITED PROPERTY: WHAT TO DO WITH THE INHERITED HOUSE?

Inheriting a property is not only associated with a sad circumstance, the loss of a loved one, but also with many question marks.

What should you do with the house you inherited?

Inherited a house: what happens now?

Would you like to take on the inheritance and become the owner of the property? You should check in advance whether and to what extent the property is still encumbered. As the heir and legal successor to the deceased, you assume all rights and obligations as the owner – including any loan installments to the bank.

If you accept the inheritance, you must first be entered in the land register as the new owner. This requires proof of legal inheritance. You can obtain a certificate of inheritance on application to the probate court. Registration as the new owner is free of charge within two years of inheritance.

What needs to be considered in the case of a community of heirs?

If you are not the sole heir to the property, but a member of a community of heirs, you must make all decisions together. If everyone agrees that one heir will live in the house, this heir must pay the other heirs their inheritance share of the property. If all the heirs want the same thing, selling or renting out the inherited property is not a problem. It becomes more difficult if, for example, two heirs want to live in the property or one heir does not want to sell. If difficulties arise within the community of heirs, seek mediation at an early stage. In the worst-case scenario, the inherited property is sold at a partition auction and generates less proceeds than a regular sale.

What does heritable building right or leasehold mean?

If the deceased has agreed a heritable building right or leasehold contract with a third party, you enter into the contract as the heir. This means that the contract continues until the agreed date and does not expire – provided no separate agreements have been made in the event of the deceased’s death.

What is a property gift?

In contrast to a property inheritance, a property gift is made during the owner’s lifetime. The property is then transferred to the heir. The advantage of a property gift is the avoidance of tax payments: Due to the tax-free allowance for inheritances, a property can be transferred tax-free. In the case of a gift, this would take place gradually – children can utilize the tax-free allowance of 400,000 euros every ten years.

If you have any further questions about the inherited property or need detailed advice on how to proceed with the inherited house, we will be happy to help. We look forward to hearing from you.