Inherited property: Accept or reject?

At first glance, the answer to this question seems obvious. After all, real estate is worth a lot in Germany - so who would want to do without it? But whoever inherits, inherits not only assets, but also debts. So before you accept an inheritance, it is highly advisable to be well informed about the financial situation of the deceased.

Only if you know the financial circumstances and the condition and value of the inherited property, you can make a sensible decision whether to accept or reject the inheritance. This is because, by law, you have the option of rejecting the inheritance within six weeks at the competent probate court. The deadline is the date on which you learn of the inheritance. If you do not respond within this time, the inheritance is considered accepted.

Step 1: Determine the financial situation of the testator

To get a comprehensive picture of the financial situation of the deceased, you need to do some research. Looking at bank statements is not necessarily enough. There could also be investments in stocks and mutual funds. To protect yourself from unpleasant surprises, however, you need to check above all whether there are any current loans, consumer or real estate loans, or whether the deceased has, for example, assumed guarantees or otherwise got into debt. If his or her documents are very unclear, you can apply to the probate court for what is known as a guardianship of the estate. This serves to separate the assets of the heir or heirs from the estate of the deceased. This is to ensure that the heirs' private assets are not affected if many creditors unexpectedly have to be satisfied from the inheritance. Your liability as a beneficiary of the estate is thus limited.

Step 2: Check the condition of the inherited property

If the inheritance includes one or more properties, you should of course also take a close look at them before deciding to accept the inheritance. If it concerns with the inherited real estate around a multi-family dwelling it is to be examined whether all dwellings and trade surfaces are rented out, whether larger renovation and reorganization work lining up and whether the real estate carries itself, i.e. with the renting incomes net yields are gained. If the building is managed by an administrator, he can provide information on this. He also has the appropriate documents.

In the case of a single-family house or a condominium, you should also subject the condition and the equipment to an inspection. If necessary, you can take the help of a building surveyor, architect or broker. If renovations have accumulated that exceed your budget, this is of course no reason to reject the inheritance, even if you yourself have no interest in using or renting out the property. Rather, you should then deal with how you can sell your inherited property at a good price.

You have inherited a property and do not know whether you should accept this inheritance? We will be happy to advise you.

VON POLL IMMOBILIEN Bayreuth officewww.von-poll.com/bayreuthTel.: 0921 - 730 45 53

Legal notice:This article does not constitute tax or legal advice in individual cases. Please have the facts in your specific individual case clarified by a lawyer and/or tax advisor.

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