Inherited a property - what now?

Receiving an inherited property can be both an emotional and financial challenge. Whether you inherit your grandparents' home, a parent's home or another type of property, there are important steps to take and decisions to make. This article gives you an overview of how you can proceed in such a situation.

1. Accepting or rejecting the inheritance

When you inherit a property, the first decision you have to make is whether to accept or reject the inheritance. This often depends on the financial situation of the property:

• Debt: If the property is encumbered with mortgages or other debts, it may make sense to waive the inheritance.

• Deadline: You have six weeks to waive the inheritance. This period may be longer if you live abroad or if the deceased was abroad.

2. Valuation of the property

Have the property valued by a surveyor or estate agent to determine the market value. This is important for:

• Inheritance tax: The amount of tax depends on the market value of the property.

• Decision making: Whether you keep, sell or rent out the property often depends on its value and condition.

3. Clarification of inheritance tax

Depending on the degree of relationship, there are allowances for inheritance tax:

• Spouse and children: up to 500.000 and 400,000 euros respectively.

• Grandchildren: up to 200,000 euros.

• All other heirs: 20,000 euros.

If the property value exceeds the tax-free amount, tax is due. Consult a tax advisor for precise information and possible tax relief.

4. Decisions on use

After the legal clarification, you must decide what you want to do with the property:

• Self-use: If you want to live in the property yourself, check the need for renovation and ongoing costs.

• Letting: Letting can generate passive income, but involves administrative work.

• Sale: Selling is often the simplest solution, especially if the property is not to be used or there is a dispute between co-heirs.

5. Special case: Co-heirs

If you inherit the property together with other people, you form a community of heirs. Decisions about the property must be made jointly. Selling the property is often the most practical solution to avoid disputes.

6. Practical tips

• Check documents: Get an overview of land register excerpts, existing contracts and other relevant documents.

• Adjust insurance policies: Check existing insurance policies and adjust them if necessary.

• Consult experts: A lawyer, tax advisor or real estate expert can help you make important decisions.

Conclusion

Inheriting a property involves many tasks and decisions. Careful consideration of the financial, legal and personal aspects is essential. With the right planning and professional support, you can make the most of your inherited property.