Inheriting property: How to secure your inheritance during your lifetime
Experts estimate that in the meantime every second inheritance includes a property. But while cash is easy to divide, a property poses challenges for many heirs. To avoid disputes, more and more owners are deciding to organise their inheritance during their lifetime. Here you can find out how to transfer your assets in the best possible way and avoid pitfalls.
Legal succession: What happens without a will?
Without a will, the statutory succession comes into effect. The property is divided among the beneficiaries, including
- Spouse
- Children or grandchildren
- Parents or siblings
If there are several heirs, the division can become complicated. A property cannot simply be divided by three. Even if there is agreement, the process requires Time, nerves and money.
Anticipated succession: the advantages of an early transfer
The anticipated succession allows you to transfer your property during your lifetime. This has several advantages:
- You decide, who receives which shares.
- You can Inheritance tax and mandatory portions.
- Family members such as children or spouses are covered at an early stage.
For example, children can be given a financial head start into working life or a spouse can be provided with long-term security.
Important points: Usufructuary rights and reclamation rights
When transferring your property, you should take care to secure your own existence. Two legal instruments are available for this purpose:
- Usufructuary right: You retain the right to use and manage the property. A lifelong right of residence is often stipulated.
- Recovery rights: If the heir wants to sell the property or gets into financial difficulties, you can reclaim the property.
These regulations protect you from letting go of your financial security.
Pay attention to debts and property loans
Please note that the property also includes existing Loans or debts be transferred to the heirs. All conditions, obligations and rights should therefore be clearly set out in the transfer agreement. Comprehensive advice from a property professional or lawyer is essential in such cases.
Advantages of early transfer at a glance:
- No disputes between heirs
- Reduction of inheritance tax
- Long-term financial security for the family
- Own rights remain secured by usufruct and reclamation rights
Legal notice: This article does not constitute tax or legal advice. Please seek advice from a lawyer or tax consultant in individual cases.
