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Takeover of the parental home from the inheritance

Quelle: AMATIN 2021

You want to take over the property of your deceased parents and not sell it. Your siblings would like to be paid out and make sure that they share in the profits in the event of a possible later sale. Such a profit-sharing right can be established by means of an agreement. Experience has shown that this makes it possible to reach a quicker agreement on the transfer value of a property to be taken into account.

Market value of the parents’ house

If a property is part of the inheritance of the deceased parents, the question arises for the children as to who should take over the house (or the flat). The individual heirs can only decide jointly with regard to the assets in the inheritance. The decision as to whether a property is to be sold on the death of the second parent or whether an heir may take over the property thus requires the consent of all heirs. In practice, the question arises as to the value at which an heir may take over the property if the other heirs wish to sell the property.

Profit-sharing right

A profit-sharing right can defuse such a situation. The value of the house at the time of the testator’s death is determined. Based on this, the other heirs are paid out proportionally. By means of an agreement, it is determined that the profit in the case of a later sale of the property will also be distributed proportionately between the heirs. The right to share in the profits is agreed for about ten years, whereby in any case the costs of sale and the property gains taxes then actually paid would have to be deducted. In addition, it is justified to reduce the profit to be imputed by about 3 to 7 percent per holding year. In this way, the parties take into account the factors of maintenance, consumption, inflation and owner risk (if necessary, value-adding expenses are added). The right of first refusal registered in the land register in favour of the co-heirs ensures that the co-heirs are informed of the sale and the price. This ensures their participation in the profit, which is to be determined according to the agreed conditions.

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