Inherited – what does it mean to me?

In the case of an inheritance, all kinds of questions arise and those affected are often overwhelmed. What needs to be arranged now, what administrative procedures are there and, above all, what costs are now incurred? You will find the answers to these questions in this article.

House or apartment inherited? – You have to take this into account

Anyone who inherits a home must first inform themselves about the status of the property. Is the house in debt or are there mortgages on the building or apartment that you have inherited? If you answered yes to this question, it is better to reject the inheritance to avoid putting yourself too much into debt. However, when it comes to emotionally valuable family assets, you need to create a financial plan and see if you can fund the inheritance.

If you want to keep the inheritance you have inherited, you need to make a decision on the following question: How should the house or apartment be used? You can live in the building yourself, rent it out or sell it completely.

Regardless of what you choose, an important task is also correcting the land registry so that you can be registered as an owner and empowered to make further decisions.

If there are other people involved in the inheritance, such as siblings or a community of heirs, you should definitely discuss how to proceed with them.

What to do with the belongings from the inherited house?

Regardless of which of the three alternatives – rent, use or sell – you have decided what to do with the content of the inherited property. Whether it is furniture or personal belongings of the deceased, these things must be removed from the house or apartment if they are to be used further. Unfortunately, almost no one has that much free storage space and most things are too good to throw away immediately.

We offer the solution to this problem! At BOXIE24 you can rent storage space, for example to store yard furniture and thus create space for the further use of the inheritance. We know that with an inheritance you need to focus on many different tasks and renting a self storage unit has therefore been made as easy as possible.

• Handy: we collect the things from the inherited house or apartment. You don’t have to do anything else, and you can focus on the more important tasks.
• Cheap: thanks to our innovative concept, we always offer you the cheapest price when renting storage space.
• Simple: simply book your storage space in our modern warehouse online or call us. It only takes a few minutes.
• Flexible: with us, you do not pay a high down payment and you do not have to observe long notice periods. You can save and retrieve at any time. Call us!
• Secure: Even if the inherited facility has high emotional or financial value, your belongings are safe at all times in our state-of-the-art warehouses, which are monitored 24 hours a day.

Sell, rent or use hereditary properties yourself?

After the items have been collected from the home, you can think more carefully about how you want to use the home. In particular in the case of a community of heirs, it makes sense to obtain tax and / or legal advice.

To determine the financial impact of a sale, a local real estate agent can also be called in who can estimate the market value of the inherited property before it is sold. Basically, the heirs have three options for further action:

Inhabiting yourself

If you decide to live in the property yourself, this will result in high tax benefits, especially for spouses or children. For example, spouses are exempt from inheritance tax if they have lived in the property for 10 years after that. This also applies to children if the living area does not exceed 200 square meters.

Sale of an inherited house

A big advantage of selling is that the purchase price gives you liquidity quickly and can quickly cover any costs. If the house is rented out when you take it over, you should think carefully whether you prefer to sell or rent it. The solvency of the tenants and the need for renovation play a particularly important role in the decision.

Rental of the house

If selling and using is not an option, the house can also be rented out. The rental income is then subject to income tax as income from rental and leasing. If the inherited house has already been rented out, you as heir automatically become the legal successor of the deceased, and you take over all rental agreements. Please contact the property manager to find out the current status of the house.

Determining homeownership

If a community of heirs is involved, there is also a fourth option to use the property – you and the other heirs can establish homeownership. The house is divided into several apartments with different owners.

However, this requires a certificate of completion, i.e. the apartments must be self-contained units allowing independent use. In addition, a declaration of division is required, which splits the property into condominium and community properties.

Inherited house: what costs you now have to deal with

There is no general answer to the exact costs you will incur if you inherited an apartment or acquired a house. In essence, however, two aspects have an impact.

Situation of the house

Has the house been paid off or is there still a debt? In that case, the loans are taken over as heir for repayment.

Inheritance tax

Inheritance tax always depends on the relationship between the heir and the deceased. Direct family members, such as children or spouses, fall under tax class 1, indirect family members, such as parents or grandparents, fall under tax class 2 and all other persons fall under tax class 3. The family relationship also has an impact on the tax exemption. Immediate family members receive the highest tax deduction. This is a maximum of 500,000 euros for life partners. Everything that falls outside the tax deductibility is taxed at a fixed rate. The tax rate itself depends on the tax class and the amount of the inheritance. The higher the tax bracket and the higher the inheritance, the higher the tax rate. In load class 3 this can, for example, be as high as 50%. With real estate, estimating the amount of inheritance is always a bit more difficult. The market value must first be estimated by the probate court. No statement can be made in advance about the amount of the inheritance tax.