Accepting or rejecting the real estate inheritance?

If you receive a property as a result of an inheritance, you should take a closer look at the deceased's financial circumstances. In the case of close relatives such as your own parents, you may still know them and they may even have grown up in the home you inherit. However, if you inherit the condominium of an aunt, for example, with whom you had little contact, this will be more difficult.

Only if you know the financial circumstances and the condition and value of the property is it possible for you to decide on a well-informed basis whether to accept or reject the inheritance. 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 period, the inheritance is deemed to have been accepted.

In exceptional cases, for example if the deceased lived abroad or you yourself live abroad, this period may be extended.

In order to get a comprehensive picture of the deceased's financial situation, bank accounts should be checked and it should be ascertained whether there are investments in shares and funds as well as savings. Conversely, it may also be that he or she has accumulated debts, assumed guarantees or still has current loans, consumer or real estate loans. As an heir, you also take over the deceased's outstanding debts.

If his or her documents are very confusing, you or the co-heirs can apply to the probate court for what is known as a guardianship of the estate. Creditors can also apply for such a guardianship. It serves to separate the assets of the heir or heirs from the estate of the deceased. The aim is to ensure that the heirs' private assets are not affected if many creditors unexpectedly have to be paid from the estate. This limits the liability of the beneficiary of the estate.

The digital executor, who takes care of deleting email accounts, websites and social media profiles, is also becoming increasingly important.

If the inheritance includes one or more properties, you should take a close look at them if you are not familiar with them. If it is an apartment building, you should check whether all apartments and commercial spaces are rented out, the condition of the building and the rented spaces, whether major renovation and refurbishment work is pending and whether the property is profitable, i.e. whether the rental income is generating returns. If the building is managed by a property manager, he or she can provide information on this. He also has the relevant documents.

In the case of a detached house or condominium, you should also check the condition and furnishings and, if necessary, seek the help of a building expert, architect or estate agent. If renovations have piled up and exceed your budget or if you are not interested in keeping the property and renting it out, for example because it is far away from your home, you should sell it.

You don't know whether it makes sense to accept the inherited property? We can assess the value for you.

Photo: Witthaya