Sale of the part of the inheritance

When does it make sense to sell the inheritance?

There can be many different reasons for wanting to sell an inheritance.

If, for example, several people have inherited a share of the estate, they form a community of heirs. It should be noted that none of these co-heirs is authorized to dispose of a single item of the estate independently. The share of a co-heir in the estate is calculated on the basis of the respective inheritance quota. The heir can sell this inheritance quota, among other things, in order to be able to leave the community of heirs and to generate free financial means.

In addition to the financial advantage, emotional burdens or disputes within the community of heirs can also lead to the heir wanting to sell his or her inheritance share. In practice, such disputes often occur within the community of heirs. The main reason for this is that communities of heirs are usually not long-term oriented. Their main goal is to dissolve as quickly as possible by dividing the inheritance among the heirs. However, these settlements often lead to conflict situations that can make a smooth inheritance settlement impossible.

In the worst case, such conflicts can even result in real estate or land having to be auctioned off, which is something the testator actually wanted to avoid in most cases. In such situations, the sale of an inheritance share can be an effective solution to immediately free oneself from the deadlocked situation within the community of heirs. It should be mentioned here that the testator cannot usually exclude this possibility by means of a will or other testamentary dispositions, as a legal prohibition pursuant to Section 137 of the German Civil Code would not be enforceable.

 

How can I sell my inheritance?

If an inheritance is to be sold, three requirements must be met. First, a distinction must be made as to whether the heir inherits as part of a community of heirs or as a sole heir. As a sole heir, one is exempt from the requirements for the sale of the inheritance share, which are further explained below. For the sale, the rightful heirs must be established. This is done either by a certificate of inheritance or a will. In addition, the contents of the estate must have been largely processed. This means that all assets and debts of the decedent must be known and recorded.

If the heir willing to sell and a buyer agree on the purchase of the inheritance, an inheritance purchase agreement must be drawn up. Pursuant to Section 2033 of the German Civil Code, this must be notarized. If not a sole heir, but a co-heir as part of a community of heirs sells his inheritance share, the other co-heirs must be informed about the purchase.

After successful completion of the sale, the seller is no longer part of the community of heirs and instead the buyer joins the community of heirs as heir.

 

Can I also give away my inheritance?

It is also possible to give away a share of the inheritance. However, it should be noted that this could have consequences under gift tax law. This also applies to so-called mixed gifts. Such a gift is assumed if the inherited part is sold significantly below its value. In the case of a gift, however, the other co-heirs have no right of first refusal and are therefore not protected against a third party becoming part of their community of heirs.

 

What prices can be achieved?

It is extremely difficult to determine the price when selling an inheritance. Not only the existing assets but also already known liabilities have to be taken into account. From a potential buyer's point of view, it must also be considered that new liabilities could arise that were unknown before the purchase.

In contrast, when valuing assets, one always seeks an assessment based on current market prices. In the case of real estate, for example, this can be done through an appraisal or by listing the property for sale on popular online portals to await offers. Ultimately, an overall package of valued assets and liabilities is put together before the sale of the inherited property is completed.

In any case, the sale of an inherited part should always be advantageous compared to a possible partition auction.

 

Can I also give away my inheritance?

It is also possible to give away a share of the inheritance. However, it should be noted that this could have consequences under gift tax law. This also applies to so-called mixed gifts. Such a gift is assumed if the inherited part is sold significantly below its value. In the case of a gift, however, the other co-heirs have no right of first refusal and are therefore not protected against a third party becoming part of their community of heirs.

 

What prices can be achieved?

It is extremely difficult to determine the price when selling an inheritance. Not only the existing assets but also already known liabilities have to be taken into account. From a potential buyer's point of view, it must also be considered that new liabilities could arise that were unknown before the purchase.

In contrast, when valuing assets, one always seeks an assessment based on current market prices. In the case of real estate, for example, this can be done through an appraisal or by listing the property for sale on popular online portals to await offers. Ultimately, an overall package of valued assets and liabilities is put together before the sale of the inherited property is completed.

In any case, the sale of an inherited part should always be advantageous compared to a possible partition auction.