Inherit or give away real estate correctly

Testators usually want the best for their survivors. However, if several heirs are named in the will without a clear division of the inherited items, the heirs must come to an agreement among themselves.

If there is no last will and testament, a community of heirs is created by law if there are several compulsory heirs. All heirs then have the same rights and obligations. If one of the heirs lays claim to a certain item, he or she may not access it alone and directly.

In the case of a community of heirs, properties can also only be sold with the cooperation of all co-heirs. The community of heirs is dissolved with what is known as the division of the estate after the heirs have reached an agreement.

The statutory inheritance law is based on the traditional family form. Members of a patchwork family should therefore inform themselves about the order of succession. If you want to shape your inheritance according to your own wishes, you need to take action. According to the statutory order of succession, only biological and adopted children can claim an inheritance or a compulsory portion. Stepchildren, on the other hand, inherit nothing.

A will can avoid disputes, especially when it comes to the inheritance of larger assets. So-called division orders regulate the division of the estate. For example, it can be stipulated which heir should receive which item from the estate. However, the testator can also order the entire estate to be sold or auctioned off and the heirs to share in the proceeds according to their inheritance share.

Leaving nothing of value would be the simplest solution to avoid disputes and save taxes. However, this is difficult to implement in practice. However, if there is sufficient retirement provision, assets such as property or money can be given away during your lifetime.

Most inheritances and gifts are below the high tax-free amounts when calculating taxes. For example, spouses can inherit up to 500,000 euros and their own children up to 400,000 euros each without paying tax.

The same tax-free amounts apply to gifts as to inheritances - every ten years. For children, this means 400,000 euros per parent. This means that children can receive up to 800,000 euros in tax-free gifts from their parents every ten years.

(Photo: © Anna Paderborn, Pixabay)