Help, I have inherited a property!

In more than half of all inheritances in Germany, a property is passed on to descendants. Every year, between 100 and 150 billion euros of real estate assets change hands in this way. Due to the high tax allowances, there are no more precise figures.

Perhaps you are one of them, have just inherited a property or expect to be able to call a heritage of stone and mortar your own in the foreseeable future.

Then there are probably many questions running through your head: Is it worth renovating your parents' house? Are there people in the immediate or extended family who would like to move in? When does it make sense to renovate the property and rent it out, and when is it better to sell it? How does a community of heirs work?

This guide explains the range of things you need to consider when inheriting a property. First of all, there are various deadlines to observe and, as the heir, you may have to pay inheritance tax on your new assets.

Under certain circumstances, you should consider waiving an inheritance. This is advisable if you do not know the exact financial circumstances of the deceased.

As you can see, there is a wealth of questions. This guide aims to provide answers to the most important ones. However, as every property is unique and every inheritance case is different, you should also consult experts.

You should therefore seek help from a professional estate agent. They can assess the market value of the property, market the house or apartment professionally and moderate any disagreements within a community of heirs in order to achieve a result that is acceptable to everyone.

A tax advisor can help you calculate inheritance tax or give you tips on tax structuring options for an inherited rental property. An architect can advise you on a planned renovation of your new home.

Have you inherited a property and don't know how best to proceed? We will be happy to advise you.

Note: This information reflects the legal conditions at the editorial deadline (October 2018). All information is provided without guarantee.

Photo: AnaBGD