Important rules for inheriting and bequeathing property

The subject of inheritance and bequests is often characterised by emotions - especially when it comes to property. Emotions are justified, but from a tax, legal and financial point of view, a good deal of common sense is required. Here are the most important rules:

Anyone who inherits a property should deal with the associated tasks, rights and obligations at an early stage. Sober questions play a role here: What condition is the property in?  Is the property financially burdened? Are there circumstances that require immediate action? What maintenance obligations exist? 

If several heirs are involved, they must all reach an agreement. If the interests of the heirs are too far apart, it may make sense to sell the property. Money is easier to divide up than property. The inheritance must be reported to the tax office. There are three months after the inheritance to do this. The heirs should take their time to decide what they want: move in themselves, rent out or sell.

In 2022, properties worth around 23.7 billion euros were bequeathed. The state's income from inheritance and gift tax totalled around 11.4 billion euros. How high the tax is for the heirs depends on the degree of kinship and the value of the inheritance. In addition, any compulsory portion claims of disinherited relatives must be taken into account.

Inheritances are often the cause of arguments within the family. If you want to avoid this, you should plan as carefully and proactively as possible. This is not only good for family peace, but also reduces the tax burden. Without a will, the person who is closest to the testator in terms of kinship inherits. These are first and foremost the spouse and children, then parents and siblings and finally other relatives. 

Conclusion: It pays to make provisions in good time. This is because the sharp rise in property values in recent years has led to the tax authorities changing their valuation method for properties. As a result, "granny's little house" may suddenly have a value that exceeds the tax-free amounts and may result in high inheritance taxes. 

(Photo: © Manfred Antranias Zimmer, Pixabay)