According to the statutory order of inheritance, most people have several heirs. Children, grandchildren, and spouses: they are all taken into account and receive a small portion of your property as their compulsory share. However, usually only one heir and their family can live there. Often, this heir is financially unable to buy out the rest of the heirs, leaving them with no other option than to sell the property.
First, you should clarify whether any of your children or grandchildren would even want to live in your property later on. If not, the topic of reverse mortgages, which we already discussed on page X, might be of interest to you again.
However, if one of your heirs is interested in your apartment, it's advisable to protect them with a will. If you've purchased an age-appropriate apartment, it might be of interest to your own children. In fact, most heirs are already around 60 when their parents die.
When drafting your will, it's also important to consider whether your property is the only asset you're leaving behind. Naturally, you can't disinherit any of your legal heirs who are entitled to a compulsory share. So, if you bequeath the property to one of your children or to your spouse, the compulsory shares of the other heirs must be satisfied through other assets. Otherwise, they are entitled to a portion of the house despite your will. In such a case, it's crucial to grant your chosen heir a lifelong right of residence in the property. This prevents the other heirs from forcing them to sell.
When drafting your will, it's also advisable to seek tax advice. After all, you want your heirs to pay as little inheritance tax as possible. If you bequeath the property to your partner or a child who lives with you, then under certain conditions, there may be an exemption from inheritance tax for owner-occupied residential property.
Furthermore, it's important to consider the proper format of your will to ensure its legal validity. A hastily scribbled last will and testament, like those seen in movies, is unlikely to hold up in court. For a handwritten will to be valid, it must be signed at the end, and a date and time stamp are also recommended. In fact, the entire text must be handwritten. However, a notarized, public will is preferable, as it cannot be lost and the wording is legally sound.