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? However, those who inherit inherit not only assets, but also debts. Before accepting an inheritance, it is therefore highly advisable to find out about the financial situation of the deceased.

Only if you know the financial circumstances as well as the condition and value of the inherited property can you make a sensible decision as to 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.

Step 1: Determine the financial situation of the testator

To get a comprehensive picture of the deceased's financial situation, you need to do some research. A glance at the bank statements is not necessarily enough. There may also be investments in shares and funds. However, to protect yourself from unpleasant surprises, you must first check whether there are any current loans, consumer or real estate loans, or whether the deceased has taken on guarantees or other debts. If the deceased's documents are very confusing, you can apply to the probate court for what is known as probate administration. This serves to separate the assets of the heir(s) 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 their liability as beneficiaries of the estate.

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 whether to accept the inheritance. If the inherited property is an apartment building, you should check whether all apartments and commercial spaces are rented out, 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 fittings. If necessary, you can enlist the help of a building expert, architect or estate agent. If renovations have piled up that exceed your budget, this is of course no reason to turn down the inheritance, even if you have no interest in using or renting out the property yourself. Instead, you should consider how you can sell your inherited property at a good price.

Have you inherited a property and don't know whether you should accept this inheritance? We will be happy to advise you.

You need further information:

https://de.statista.com/themen/133/immobilien/

https://de.wikipedia.org/wiki/Immobilie

https://de.wikipedia.org/wiki/Vorweggenommene_Erbfolge

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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