If you inherit a property, you should take a closer look at the deceased's financial situation. With close relatives like your own parents, you might still know them; perhaps you even grew up in the inherited home. However, if you inherit, for example, an apartment belonging to an aunt with whom you had little contact, this becomes more difficult.
Only by understanding the financial circumstances, condition, and value of the property can you make an informed decision about whether to accept or decline the inheritance. By law, you have the right to decline the inheritance within six weeks by notifying the relevant probate court. The deadline is the date you learn of the inheritance. If you do not respond within this period, the inheritance is considered accepted.
In exceptional cases, such as if the deceased lived abroad or you yourself live abroad, this period may be extended.
To gain a comprehensive understanding of the deceased's financial situation, bank accounts should be reviewed to determine if there are any investments in stocks and funds, as well as savings. Conversely, it's also possible that they accumulated debts, assumed guarantees, or had outstanding loans, consumer debt, or mortgages. As an heir, you also inherit the deceased's outstanding debts.
If the estate documents are very disorganized, you or the other heirs can apply to the probate court for the appointment of an estate administrator. Creditors can also apply for such an appointment. Its purpose is to separate the assets of the heir(s) from the estate of the deceased. This ensures that the heirs' personal assets are not affected if, unexpectedly, many creditors need to be paid from the inheritance. This limits the liability of the heir(s).
The digital estate manager, who takes care of deleting email accounts, websites and social media profiles, is also becoming increasingly important.
If the inheritance includes one or more properties, you should examine them closely if you are unfamiliar with them. If it is an apartment building, you should check whether all apartments and commercial spaces are rented, the condition of the building and the rented areas, whether major renovations or refurbishments are needed, and whether the property is profitable, meaning it generates a return on investment from the rental income. If the building is managed by a property manager, they can provide this information and have the relevant documents.
For a detached house or a condominium, you should also inspect the condition and features, and if necessary, seek the assistance of a building surveyor, architect, or real estate agent. If renovations have accumulated and exceed your budget, or if you have no interest in keeping and renting out the property, for example, because it is far from your home, you should sell it.
Are you unsure whether it makes sense to accept the inherited property? We will assess its value for you.
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