Dissolution of the community of heirs

If a deceased person leaves several heirs, they form a community of heirs. As a community of heirs is not intended to last forever, the aim is to dissolve it, i.e. to finally settle the inheritance. This is often not easy, especially in the case of real estate, and leads to disputes.

Estate agents with many years of experience know that a community of heirs can be dissolved in two ways: Either peacefully or in a dispute, as a result of which a decision is forced. It is therefore advisable to contact a neutral real estate professional who can advise heirs on how to deal with the inherited property. In this way, a dispute can be avoided, which usually results in financial losses.

What is possible with the inherited property?

As a first step, it makes sense to have the property valued by a local quality estate agent. Because only if the heirs know the value of the property can a fact-based and fair decision be made as to what should happen to the property. Should it be sold so that the proceeds can be divided fairly? Is it worth renting out? Or how much should an heir pay if they want to pay off the others to keep the property?

Are all co-heirs known?

Each heir can only dispose of his or her share of the inheritance. Therefore, only all heirs can decide together what to do with the entire inheritance. It is often not so easy to identify all heirs if, for example, heirs outside the core family are entitled to inherit. With the help of an heir tracer, other heirs can be identified.

The executor of the will

A testator can stipulate in their will during their lifetime that an executor is authorized to conduct the settlement within the community of heirs. In this case, dissolution cannot take place without the executor's consent. However, the executor is also obliged to take the will of the testator into account.

Dissolution of the community of heirs

Achieving dissolution by mutual agreement is usually the best solution. If the community of heirs cannot find a joint solution, a co-heir can force a decision by applying for a partition auction. However, this often results in financial losses. Alternatively, the community of heirs can stipulate in a settlement agreement how the inheritance is to be divided - provided the testator has not ordered a prohibition of division. Many communities of heirs end up deciding to sell the property. After all, money is easier to divide than a house or property.

Are you and your co-heirs unsure what should become of the jointly inherited property? Get in touch with us! We will be happy to advise you.

Notes

For reasons of better readability, the generic masculine is used in this text. Female and other gender identities are explicitly included where this is necessary for the statement.

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

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