
Dissolution of the community of heirs
Real estate agents with many years of experience know that a community of heirs can be dissolved in two ways: either amicably or through a dispute, resulting in a decision being enforced. It is therefore advisable in all cases to consult a neutral real estate professional who can advise heirs on how to deal with the inherited property. This can help avoid disputes, which usually result in financial losses.
What are the options for inherited property?
As a first step, it makes sense to have the property valued by a local real estate agent. Only when the heirs know the value of the property can a fact-based and fair decision be made about what should happen to it. Should it be sold so that the proceeds can be divided fairly? Is it worth renting it out? Or how much would an heir have to pay if they wanted to buy out the others in order to keep the property?
Are all co-heirs known?
Each heir can only dispose of their share of the inheritance. Therefore, only all heirs together can decide what should happen to the entire inheritance. It is often not easy to identify all heirs, for example if heirs outside the immediate family are entitled to inherit. With the help of an heir finder, additional heirs can be located.
The executor
A testator may stipulate in their will that an executor is authorized to settle the estate within the community of heirs. In this case, the estate cannot be dissolved without the executor's consent. However, the executor is also obliged to take the testator's wishes into account.
Dissolution of the community of heirs
Reaching a mutual agreement is usually the best solution. If the community of heirs cannot find a joint solution, a co-heir can force a decision by applying for a partition sale. However, this often results in financial losses. Alternatively, the community of heirs can set out how the inheritance is to be divided in a settlement agreement, provided that the testator has not ordered that the estate not be divided. Many communities of heirs ultimately decide to sell the property. After all, money is easier to divide than a house or land.
Are you and your co-heirs unsure about what to do with the jointly inherited property? Contact us! We will be happy to advise you.
Notes
For reasons of better readability, the generic masculine form is used in this text. Female and other gender identities are expressly included insofar as this is necessary for the statement.
Legal notice: This article does not constitute tax or legal advice in individual cases. Please consult a lawyer and/or tax advisor to clarify the facts of your specific case.
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