Intestate succession

In principle, the topic of “inheritance and estate” is always in good hands with a (specialist) lawyer. The construction of pre- and post-heirs is complicated. Nevertheless, there are a few easy-to-understand principles that every property owner should know and can also easily implement themselves. Here are some questions that come up again and again and which we will answer in the following.

• Pre-heir and post-heir – what is it all about?
• My mother is the previous heir. Is she allowed to sell her part of the house so easily?
• Is the owner (previous heir) entitled to sell the house without the consent of the subsequent heir or does the latter have to agree to the sale?
• I’m heir apparent, now what?
• House sale despite succession?

Pre-heir – post-heir: what does it mean?

Anyone who wants to bequeath something is free to determine the heirs and can therefore also transfer his or her inheritance to several persons in a staggered manner. The subsequent heir is then the person who receives the inheritance only after another person – the so-called previous heir – has previously inherited. The testator can, for example, choose an occasion or a point in time for the succession to occur, such as coming of age or passing the master’s examination.

The previous and subsequent heirs are both legal successors of the testator. However, they do not form a community of heirs in which they would inherit at the same time, but inherit one after the other due to the instigation of the testator.

Pre- and post-heirs for married couples – safeguarding assets in the family

The inheritance regulation by means of a pre- and post-heir is often used by married couples. In this way, they can ensure that all their joint assets remain in their own family. For this purpose, the spouses each name the other as a pre-heir and the joint children as a post-heir. Even in the event of remarriage after the death of one spouse, the assets cannot be inherited by the new spouse.

Pre-heirs – tasks, duties and rights

Pre-heirs are also referred to as ‘temporary heirs’. This is because they only have limited power of disposal over the estate. Particularly in the case of inherited real estate, this situation has consequences for both sides – i.e. the previous and subsequent heirs. First of all there is the inheritance tax. This is always payable initially by the previous heir.

• The previous heir must pay the inheritance tax from the funds of the previous inheritance.
• The previous heir is only the heir until the next of kin occurs.
• If a property is inherited and occupied by the previous and subsequent heirs themselves, no inheritance tax is payable
• The property must be owner-occupied for at least ten years after acceptance of the inheritance
• The owner-occupied living space must not exceed 200 sqm.
• Only then no inheritance tax is due

Statistics – Heritage in Germany

Read more facts and figures here: Real Estate Statistics. We also have other interesting studies, surveys and statistics on the topic: Inheritance in Germany.

Restriction of disposition – exceptions and rights of the previous heirs in real estate transactions

The previous heir cannot dispose freely of the estate. Inheritance law imposes certain restrictions on the disposal of the estate by the previous heir, because in the event of a subsequent inheritance, the assets should accrue to the subsequent heir undiminished. For example, the previous heir may not sell or give away any property from the estate without the consent of the subsequent heir. The previous heir may use other inheritance items for himself, but he is obliged to compensate the successor for the value of the item after the succession has occurred.

However, the testator may exempt the predecessor from many of these restrictions. This is then referred to as an exempt preheir. The “exempt estate” – which may then also include real estate – may be sold by the exempt previous heir alone, without having to obtain the consent of the subsequent heir.

Pre-inheritance & post-inheritance – advice from a lawyer

Broker tip: Watch out when buying inherited real estate

If a property from an estate is to be sold, there are many details to consider – for the seller and also for the buyer. At the latest here – after a lawyer has also been consulted for advice – the broker should come into play. The experts at Lukinski – Lukinski – have the necessary expertise to help with these complex issues.

Especially important: the real estate agent has the necessary distance to accurately determine the value of an inherited property. With inherited houses, money is often given away unnecessarily because the heir wants to get rid of his inherited property quickly. The opposite is also possible: so many memories and emotions are attached to the inherited house that the value is set too high. The property is then difficult to sell.

Find a broker as a pre-heir

Finding a broker as a pre-heir means paying attention to very special services. This is because the broker must be very familiar with the legal intricacies of succession and the connections between the pre- and post-heir.

Lukinski will perform for you as a pre-heir:

• The neutral valuation of your inherited property
• The professional sifting and arrangement of all documents from the inheritance necessary for the sale
• The professional and sales-promoting staging of your object (photos/videos)
• Your emotional state is given special consideration
• The proper creation of an appealing sales exposé
• The discreet placement of your property in all relevant media
• The analysis of our extensive customer file for suitable buyers
• The discreet organisation and execution of viewing appointments
• The discreet conduct of negotiations with prospective buyers (if desired, without your presence)
• Finalization of the purchase contract in cooperation with notaries

When will the broker be paid?

A reputable agent and real estate salesperson will only be paid upon a successful closing and will discuss their fee rate right at the beginning of the sales process. Openness and transparency are therefore fundamental criteria by which the house seller recognizes the good broker.

How much is inherited in Germany?

Here you can see inheritances and gifts in Germany. The survey ranges from 2008 to 2018 and shows that over 110,000 inheritances are distributed each year. Great potential for dispute if the community of heirs does not agree. Here you can find more interesting studies, surveys and statistics on the topic: Inheritance in Germany.

You can find more statistics at Statista

How much money is inherited?

Since 2014, Hamburg in particular has been at the top in Germany. Hamburg is currently at the top with 167.80 euros. In no other city is so much inherited. With a population share 2.19% of total Germany (1.82 million out of 82.79 million), a total volume of 305,731,600 euros is inherited annually.

• Population share Hamburg 2.19%
• Inheritance in Germany (comparison year) 109,635; statistically 2,401 inheritances in Hamburg
• Total inheritance (Hamburg / year) 305.731.600 Euro

You can find more statistics at Statista

City escape: The feeling of wanting to live in the country again

Just a few years ago, the rural exodus was considered an integral part of German demographics (More on Statistics / Real Estate & Housing). More and more parts of the population in the country, wanted to try their luck in the city. The rural areas are thereby for a long time not only threatened, from the departure of the people, real are millions of people from small villages in the city moved. Large metropolises such as Berlin or Frankfurt am Main can hardly save themselves from the influx of residents. In Berlin alone, 30,000 people move into the city every year. Of course, there are also many people who move to Germany and have not lived here before. But the majority of people are from Germany and mostly from sparsely populated, rural areas.

The growing pull of the cities not only ensures that fewer and fewer people live in the countryside, of course, the local economy suffers from it. Ultimately, of course, the social life, from the classic example, the bus that comes only once an hour, if at all. To the baker around the corner or the supermarket that has to close because there are no longer enough customers for the business. For a long time, there was virtually nothing to counter this trend. Save the province! That was the motto throughout.

Not a good outlook for sellers, but now people and young families are coming back! Today there is slowly a counter-current, more and more people are trying to escape the conurbations and are looking for their fortune in the countryside again. In doing so, it’s no longer just to the suburbs, but rather to the bastions of the cities. You can read more about this topic in this week’s Bundesanzeiger:

Real Estate Newspapers: Overview on urban flight to trade in healthcare real estate

Federal Gazette on urban migration and its effects

Do you still remember the great debates on the topic of “rural exodus”? The trend seems to be slowly reversing. More and more people, including young people, are seeking their fortune somewhat outside the conurbations. Bundesanzeiger takes a close look at the issue and sheds light on the reasons behind the decision of many. This week at Bundesanzeiger among others “Where prices have risen particularly sharply” but also the just mentioned “The new urban flight” . New articles, headlines and trends:

• The new urban exodus
• Where prices have risen particularly sharply
• ZIA demands: A European approach to climate policy

Housing in Tokyo: Future for German Cities?

Up to 2,000 euros for a 1-room apartment. Tokyo is the most expensive city in the world when it comes to housing. In this Galileo report, you can see what the increasing shortage of housing in big cities is leading to. Is this also a future scenario for Germany?

Even satirical magazines like extra 3 deal with the topic of rural exodus – a trend that continues but is subsiding.

Berlin.de about the protests on the current debate about expropriation

New articles and posts from Berlin.de this week include “Expropriation of real estate owners is a “moronic idea”” and “FDP: Remove the possibility of expropriation from the Basic Law”. Within the policy in Berlin moves thus momentarily some. Why exactly the FDP wants to delete the part in the law, you can find out today on Berlin.de. More headlines of the week:

• Eminent domain for property owners is ‘moronic idea’
• Business associations warn: “Expropriation leads to the sidelines”.
• FDP: Remove possibility of expropriation from Basic Law

Real Estate Newspaper on health care real estate trading

Investing in nursing homes and hospitals, that is for many investors nothing strange. Therefore, today in the real estate newspaper a look the trade. This week, Real Estate Newspaper has interesting topics such as “Lack of logistics properties melts investment volume” and “Prices for residential buildings increase by 4.8% within a year” in the magazine. Check out the posts and more tips here:

• Lack of logistics properties causes investment volume to melt away
• Healthcare real estate traded for 427 million euros
• Prices for residential buildings increase by 4.8% within one year

Spiegel about the price increase of real estate due to low interest rates

Interest rates are the trigger for many overarching effects of the economy. Depending on the development, e.g. the construction interest rate development, strategies and plans change. This also has an effect on the real estate sector and of course on the increase in rents and purchase prices. With mirror it goes in this week around “Dubiose accountings: Tenants defend themselves against housing giant Vonovia” and “Real estate crisis: what really helps against the housing shortage” . More news from this week:

• Housing crisis: What really helps against the housing shortage
• Rents and purchase prices: How low interest rates make real estate more expensive
• Dubious settlements: Tenants defend themselves against housing giant Vonovia

Süddeutsche Zeitung on the headquarters of the Bayerische Versorgungskammer (new building)

There is no new record in Bavaria. More precisely, it is about the winning design for the new headquarters of the Bavarian Chamber of Supply on Richard-Strauss-Strasse. The building could have been even taller, why not, that reveals the Süddeutsche in the article on the winning design:

• High-rise complex remains under the 100-metre mark

Stern about the rip-off of emergency services

Craft rip-off! The topic comes up a lot, whether it’s dish services or handymen coming to fix your washing machine. Stern’s blog looks at “Top 10 factories: Megafactories – the largest factory is in Germany” and “Rip-off emergency services: botched construction: craftsmen collect 150,000 euros – and leave only chaos” . More news of the week:

• Rip-off of emergency services: botched construction: tradesmen collect 150,000 euros – and leave only chaos behind
• Top 10 Factories: Megafactories – the largest factory is in Germany
• Natural building: This material actually seals wine bottles – but houses are also made of it