The regular procedure for inherited real estate rarely provides for self-occupation. If you own a house yourself, you will usually not think about moving into your parents’ house or any other inherited property yourself. It is also difficult with communities of heirs if you want to move in and have to pay off the other heirs. Nevertheless, you should not completely disregard this option, as there is an advantage to moving in yourself, especially in the case of houses within the speculation period.
You have a very strong emotional attachment to the house you inherited from your parents. Your entire childhood and all the fond memories are connected to the property. For this reason alone, it is difficult to make a rational decision and makes you tend to overlook important criteria. When you inherit a house, you take on all the liabilities of the deceased, such as those associated with a mortgage or outstanding bills for renovations. In general, we advise you to check the state of renovation and, before moving in, to find out whether there are any debts relating to the property and whether you can settle them without selling. Necessary renovations that fit your needs may also be a reason for consideration. If you have not inherited the house alone, but as a community of heirs , the payment of the co-heirs must be considered and precisely calculated when you move in.
If at the time of inheritance you were just thinking about property ownership and decided to buy, moving into the inherited house is a good solution. For newer properties purchased less than 10 years ago, you can avoid speculation tax by moving in and holding the property yourself.
More information about inheritance:
Inheritance tax
For many heirs, grief, joy and sorrow are closely linked. When you inherit a house, this process is always linked to a painful, emotional loss. After some time, a slight joy spreads and you realize that you are a homeowner. At the same time comes the worry that the tax office will claim inheritance tax from you and you will only be able to pay this amount if you sell the house. You have an exemption amount, below which there is generally no inheritance tax. The amount of this allowance is based on your degree of relationship to the deceased. Spouses can inherit real estate tax-free up to 500,000 euros, children up to 400,000 euros. To ensure that you do not pay speculation tax, you should consider whether you would like to live in the inherited house yourself if it was acquired less than 10 years ago. Everything about inheritance tax.
Contested
Ideally, the heirs of a community of heirs would pay any debts swiftly from the estate and then dissolve the community of heirs by distributing the surplus according to shares. However, this is often not the reality. Disputes within the community of heirs often ensure that they remain unresolved for years after the inheritance. Each member of such a community of heirs has the right to demand dissolution at any time, even without good cause. Learn more about the dissolution of a community of heirs.
Partition auction
The partial auction is a special variant of the forced sale and is used when several persons have ownership of a thing. This often involves a plot of land or a property that is auctioned off and the proceeds divided among the owners. This situation often occurs in communities of heirs whose estates include real property or land. In a community of heirs, the heirs share ownership of the estate property. Learn more about the partition auction.
