Inheritance Manager
Real Estate Legal Information
What should I consider with an inherited property?
Inheriting a property immediately raises dozens of questions. This guide provides you with a clear strategy to smoothly overcome all legal and financial hurdles. Secure your inheritance instead of being overwhelmed by obligations and deadlines.
With access to Google, BORIS, and Deep Research.
Strictly adhere to the 6-week deadline for disclaiming inheritance and the 2-year deadline for free land register correction.
Have the market value of the property professionally assessed to reduce inheritance tax and provide a fair basis for decision-making.
Make use of your personal tax allowances (e.g. €400,000 for children) and check if inheritance or speculation taxes can be avoided through personal use.
Have you ever wondered what really happens after the reading of the will? Inheriting a property means more than just having a new key in your hand; it is a complex project with strict deadlines and significant financial decisions. Many heirs lose thousands of euros because they overlook important obligations or misjudge the value of the property. This article guides you through the seven most important steps you need to consider. It transforms uncertainty into a clear, data-driven action plan, enabling you to make informed decisions – from correcting the land register to deciding whether to sell, rent, or move in yourself.
The occurrence of inheritance immediately triggers deadlines that cannot be postponed, and missing these deadlines can lead to legal and financial disadvantages. You have exactly six weeks from becoming aware of the inheritance to renounce it, if the property is over-indebted. If you miss this deadline, the inheritance is automatically considered accepted, including all liabilities. Another critical deadline concerns the land register: you are legally obliged to correct the entry. If you submit the application to the land registry within two years of the inheritance, the court fees are completely waived. With a property value of €500,000, you save approximately €1,200. These deadlines form the foundation for all further steps.
If you inherit jointly with siblings or other relatives, you automatically form a community of heirs. In this community, no decision can be made without the consent of all co-heirs – this affects sales, rentals, and even minor repairs. Already in 3 out of 10 heir communities, serious conflicts arise, often ending in costly disputes. To remain capable of decision-making, all co-heirs must work together. Clear communication and defining common goals are therefore crucial from the start. Clarify early on what interests each co-heir is pursuing in order to prepare for a fair division of the property. The right strategy depends significantly on the next step: precise valuation.
Every decision regarding the future of the property hinges on its actual market value. An inaccurate estimate can cost you thousands of euros, whether through an undervalued sale price or an overestimated inheritance tax. The tax office uses standardised procedures for tax calculation, which can often exceed the actual value by 15-20%. An independent market value appraisal provides you with a precise, data-driven foundation for negotiations with co-heirs and the tax office. It is the only way to find out what your inherited house is really worth. With the Auctoa Inheritance Manager and our ImmoGPT, you can obtain an initial, AI-supported assessment in just 3 minutes, setting the course for an informed strategy.
Inheritance tax is one of the biggest financial hurdles to overcome. Its amount depends on the market value of the property and your degree of kinship with the deceased. Fortunately, the legislator grants personal allowances, which often provide significant relief. Only the amount exceeding your allowance is taxed. Knowing these amounts is crucial for your financial planning.
Here are the main allowances for tax classes I and II:
€500,000 for spouses and registered civil partners
€400,000 for children and stepchildren
€200,000 for grandchildren
€100,000 for great-grandchildren and parents (when inheriting from children)
€20,000 for siblings, nieces/nephews, and all other heirs
An accurate inheritance tax calculator helps you calculate the exact burden and avoid unpleasant surprises. This clears the way for the strategic main decision.
With the formalities settled, the central question arises: What to do with the property? Each of the three options has far-reaching financial and tax implications. Careful consideration is essential to find the most profitable solution for your situation. A calculator for selling or renting often helps provide guidance.
Here is an overview of the key aspects:
Selling: This is often the simplest solution, especially in a community of heirs. The proceeds can be clearly divided and ends all joint obligations. Consider the speculation tax: it applies if the decedent acquired the property less than 10 years ago and it was not used by themselves.
Renting: Creates a long-term source of income and preserves the value for the next generation. Rental income must be taxed at your personal income tax rate. Keep in mind that maintenance costs for single-family homes can quickly reduce the return by 2-3% per year.
Personal use: The most emotional and often tax-favorable option. If you, as a child, move into the parental home and live there for 10 years, inheritance tax on the property (up to 200 square meters of living space) is completely waived. However, this often requires compensating co-heirs.
The decision largely depends on your personal life planning and financial circumstances, including ongoing costs.
By accepting the inheritance, you immediately take on all rights and obligations of an owner. This includes ongoing expenses that can quickly make up 25% of the cold rent. Do not underestimate these items in your calculations. The most important ones include property tax, building insurance, waste disposal fees, and the formation of maintenance reserves. For an average single-family home, these costs can quickly amount to €400 to €600 per month. If the property is old, you should check whether there is a need for renovation that requires further investment. A well-thought-out plan is the key to success here.
Once you have chosen a path, a structured implementation is necessary. When selling, a professional checklist for the sale ensures that no step is forgotten—from obtaining the energy certificate to the appointment with the notary. A good estate agent can speed up the sales process by up to 40%. If you decide to rent or use yourself, a long-term financial and management plan is essential. This is especially true for an heir community, where all agreements should be recorded in writing to avoid future conflicts. A clear strategy secures the property's value for the future.
When you inherit a property, proactive and informed actions are crucial. Adhering to deadlines, providing a realistic valuation, and planning taxes wisely are the three pillars on which your success rests. Use digital tools like the Auctoa Inheritance Manager to stay organized and make data-driven decisions. This way, you can turn a potentially stressful situation into a secure financial future. Your inherited property is an opportunity – seize it with the right strategy.
Bundesfinanzministerium provides comprehensive information on inheritance and gift tax.
Amtsgericht Segeberg provides information on rectifying the land register due to succession.
Statistisches Bundesamt offers data and information on construction prices and real estate price indices.
The Bundesnotarkammer provides a fee calculator for notary costs.
The Bundeszentrale für politische Bildung (bpb) offers a brief explanation of inheritance law.
The Deutsche Notarinstitut provides comprehensive information on notarial topics on its website.
The Bundesgerichtshof provides access to its legal decision database.
Do I always need a certificate of inheritance to sell an inherited property?
Not necessarily. If there is a notarised will or an inheritance contract indicating you as the sole heir, this document, along with the probate court's opening record, is usually sufficient for land register correction and the sale.
What is the difference between inheritance tax and speculation tax?
Inheritance tax is levied on the value of the inherited assets, minus your allowances. Speculation tax is additionally charged if you sell the property profitably before the deceased's 10-year holding period has expired and no exemption (e.g., personal use) applies.
Who pays the ongoing costs of the property until it's sold?
From the date of death, the community of heirs (or the sole heir) is responsible for all costs such as property tax, insurance, electricity, and heating. These costs are settled from the estate or must be shared among the heirs.
Can I simply sell my share in a community of heirs?
Yes, you can sell your entire inheritance share to a co-heir or a third party. However, you cannot sell just your share of the property alone. The sale of the inheritance share must be notarised, and the co-heirs have a legal right of first refusal.
What happens to the mortgage on the house?
Existing loans and mortgages are passed on to the heirs as part of the inheritance. They must continue to make the payments. Therefore, it is important to check the exact amount of the outstanding debt before accepting the inheritance.
How quickly must I inform the tax office about the inheritance?
You must inform the appropriate tax office of the inheritance, in a formless manner, within three months of becoming aware of it. The tax office will then check whether an inheritance tax declaration is necessary.
