Inherited property: Your options at a glance

Inheriting a property often raises many questions. Between personal memories, legal obligations, and financial considerations, the situation can quickly become confusing. Gaining clarity about the next steps early on allows you to make the right decision and avoid unnecessary mistakes.

First steps after an inheritance

Once a property becomes part of an inheritance, the first step is to determine its legal status. Has a will been probated, or is there a statutory order of succession? If there are multiple heirs, an estate community is automatically formed, requiring all decisions to be made jointly. The land register entry should also be reviewed and updated, if necessary, to clarify the legal situation. Simultaneously, it is advisable to have the property appraised by a professional. This provides heirs not only with an overview of the current market value but also of the building's condition and any potential modernization needs. These initial steps form the basis for making well-informed decisions.

Tax and legal pitfalls

A key aspect of inheritance is the potential inheritance tax. Depending on the degree of kinship and the property's value, substantial taxes can be due. While there are tax-free allowances, these are quickly exceeded, especially for properties in desirable locations. Without sound planning, this can lead to financial difficulties. Existing encumbrances such as land charges or mortgages must also be considered. Furthermore, there are legal obligations, such as the duty to maintain the property, which immediately transfers to the heirs. Failure to address these issues promptly exposes the heirs to the risk of potential damage or accidents. Therefore, it is advisable to seek legal and tax advice early on to avoid unpleasant surprises.

Sell ​​the property or use it yourself?

Once the most important formalities are taken care of, the most significant decision awaits: Should the property be kept or sold? Owning the property can be an attractive option, especially if it's in a suitable location and meets your needs. However, the ongoing costs for maintenance and potential renovations shouldn't be underestimated. Renting out the property generates regular income but also entails the responsibilities of being a landlord and requires you to allocate time and financial resources for management and upkeep. Selling, on the other hand, provides liquidity and frees you from organizational and financial obligations. To achieve the best price, a thorough market analysis is crucial. An experienced real estate agent can not only realistically assess the property's value but also professionally guide you through the sales process, saving you time and stress.

Your next step

Inheriting a property raises many questions that can't always be answered immediately. From legal protection and tax implications to personal decisions regarding use or sale – the initial steps should be carefully considered. Seeking professional support provides peace of mind and saves valuable time.

Have you inherited a property and are unsure what to do next? Contact us – we will discuss the options with you and support you every step of the way.

Notes

For the sake of readability, this text uses the generic masculine form. Female and other gender identities are explicitly included where relevant to the statement.

Legal notice: This article does not constitute tax or legal advice for any specific case. Please consult a lawyer and/or tax advisor to clarify the facts of your individual situation.

Photo: © Wordliner/Image created with OpenAI's Sora

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