If you do not inherit a property alone, but together with your siblings or the children of your deceased spouse, then you form a community of heirs.
Unlike a sole heir, where you as the legal successor can decide all real estate matters independently and freely, as a co-heir you must coordinate with the other heirs. In practice, this often leads to problems and disputes. The more people belong to an inheritance community, and the more likely they are to live in different cities or countries, the more complicated the coordination process often becomes. This is because unanimity is required for important decisions affecting the property, such as selling it, as this constitutes a fundamental change to the inheritance.
In other areas, such as managing a rented apartment or house, majority decisions are sufficient. In urgent cases, such as repairing a leaky roof or carrying out minor renovations after a burst water pipe, each individual co-owner may decide. This is because, by law, every co-owner is obligated to participate in the "proper management" of the property.
The income from the property, i.e., the rental income, is allocated according to the inheritance shares of each individual, to the income of the respective co-heir.
An inheritance community can also dissolve. This process is called "complete settlement." The co-heirs can agree to divide the inheritance among themselves. For example, one co-heir could receive €80,000, another two cars worth a total of €80,000, and a third the inherited condominium, also valued at €80,000. If you want to determine the property's value in this case, you should consult an independent appraiser.
While numerous free property valuation calculators can be found online, these should only be used for a rough initial estimate of the property's value. No contracts should be based on them.
Furthermore, a community of heirs ends when the penultimate member of the community withdraws through death or due to a transfer of their share of the inheritance. The remaining person then becomes the sole heir.
Are you unsure how to handle an inheritance as a group of heirs? We would be happy to advise you.
Photo: RichLegg