Do you want to avoid disputes over the property and transfer it to your children? Here's what you should consider.
The jointly owned property can also be transferred to their children. This can be a sensible option if both spouses want the property to remain "in the family." This approach is advisable if there is only one child. If there are several children, disputes about the use of the property can easily arise: instead of the spouses arguing about its future use, the problem is essentially passed on to the next generation. Transferring ownership to the offspring is straightforward if the child is already an adult, earns money, and can live in the apartment or house themselves and financially cover its upkeep, such as garbage collection fees, property taxes, etc.
If the child in question is still a minor, the guardianship court must also approve the transfer.
It is important to note that during the divorce proceedings, neither partner may sell or gift their share of the jointly owned property without the other's consent. This is because, in the context of community property, the real estate is a significant asset, and both partners must jointly decide its future.
Furthermore, the tax implications of a gift must also be considered. Parents can gift real estate worth up to €400,000 to their children. Gifts exceeding this value are subject to taxation unless the child uses the property themselves.
Do you have any further questions about gifting real estate? Contact us now. We'd be happy to advise you.
Photo: sqback