Inherited property: should you accept or refuse the inheritance?
If you inherit a property, it is important to gain a clear picture of the deceased’s financial circumstances. This is the only way you can decide whether to accept or refuse the inheritance. Gathering information is a particular challenge, especially in the case of relatives with whom you have had little contact.
Should I accept or decline the inheritance?
You have six weeks to renounce the inheritance at the relevant probate court – the deadline is the date on which you become aware of the inheritance. If you do not respond within this period, the inheritance is automatically deemed to have been accepted. In exceptional cases, such as if you are resident abroad, the deadline may be extended.
Check financial circumstances
To make an informed decision, you should examine the testator’s financial circumstances in detail:
- Account balance, shares, funds: Are there any significant savings or investments?
- Debts and liabilities: Check any outstanding loans, guarantees, or consumer and mortgage loans.
- Creditors: As an heir, you also inherit the deceased’s debts. An unclear financial situation can be risky.
Administration of an estate as a safeguard
If the documents are confusing or the financial circumstances are difficult to understand, you or other parties involved may apply to the probate court for an estate administrator to be appointed. This serves to separate the estate from the heirs’ personal assets. This means that any unexpected claims from creditors will not affect your personal assets. Liability is thus limited.
Digital legacy
Digital estates are also becoming increasingly important. The deceased’s email accounts, social media profiles and websites must be managed or deleted. A digital estate administrator can provide support in this regard.
Check properties carefully
If the estate includes one or more properties, a thorough review is essential:
- Apartment blocks: The condition of the building, the occupancy rate, any upcoming renovations and potential returns should be carefully examined. A property manager can provide useful information.
- Detached house or flat: The condition, fittings and any outstanding renovation work are crucial. If you are unsure, it is worth consulting a building surveyor, architect or estate agent.
If the necessary refurbishment costs are too high, the property is in an unfavourable location or is not profitable, selling it may be the better option.
Get non-binding advice now
Robert Schüßler
Property valuer (EIA and IHK)
