INHERITED PROPERTY - WHAT NOW?
When you inherit a house, you are initially faced with many questions. At the same time, however, you need to deal with the inheritance matter as quickly as possible, as inheritance law leaves little time to make important decisions on whether to accept or reject the inheritance. Important aspects such as inheritance tax, community of heirs and utilisation must be taken into account.
WHAT NEEDS TO BE CONSIDERED WHEN INHERITING PROPERTY?
Apart from mourning the deceased, inheritance is usually associated with something positive: Assets that the deceased has left to you. However, the inheritance can also turn out to be a burden. Especially if the deceased had high debts or was even overindebted. In the worst case, this can even lead to the heir getting into financial difficulties themselves. In such cases, you can renounce the inheritance.
If you inherit a property, you should pay particular attention to its condition. If there is a great need for renovation that you cannot fulfil, it may make sense to waive the inheritance. It is important to note that you can only accept or disclaim the inheritance as a whole.
WHAT IS A CERTIFICATE OF INHERITANCE?
If you are considering accepting the inheritance of the property, you will need a certificate of inheritance in order to be able to dispose of the inherited house. This can be applied for at the local court in whose district the deceased was last resident. As the sole heir, you can apply for the certificate of inheritance alone. If there are several heirs, you can apply for a joint certificate of inheritance or a partial certificate of inheritance, which shows the inheritance share of each individual heir. Such a certificate of inheritance authorises you to inspect the land register. This information, for example about encumbrances through land charges or mortgages, is decisive for the decision on whether to accept or reject the inheritance.
HOW DO YOU BECOME THE OWNER OF THE PROPERTY AS AN HEIR?
If you have examined the inheritance in detail and decide to accept it, you have already become the owner of the property due to the succession. However, the land register entry for the property must be corrected. To do this, a corresponding application must be submitted. To do this, the heirs must submit a notarised will or an inheritance contract.
It is also necessary to inform all relevant payment recipients of the change of ownership, as you as the heir also assume all payment obligations associated with the property. These may include
– The utilities, such as electricity or water
– The responsible tax office
– Insurances
– The property manager for condominiums
– The tenants, if the property is let
SINGLE HEIR OR JOINT HEIRS?
It is of great importance whether you have become the sole heir or co-heir. A sole heir is the sole legal successor to the deceased. If other people have also inherited part of the property, you are automatically part of a community of heirs. This can certainly lead to complications if the interests of the individual heirs diverge.
In the case of a community of heirs, the individual co-heirs do not receive sole ownership of the property. The estate is therefore managed jointly. In a so-called estate settlement, all co-heirs must unanimously agree on what should happen to the inherited property. The following are possible:
– Sale
– Letting or continuation of an existing tenancy
– Own use by an heir, combined with a payout to the co-heirs
