How Do I Handle Real Estate Included in the Estate?

Managing real estate as part of an inheritance is a significant responsibility that requires careful planning and attention to legal, financial, and emotional aspects. Whether you wish to retain, sell, or transfer ownership of the property, here’s how to handle real estate included in the estate with care and respect.

 
1. Understand the Legal Ownership
The first step is to establish the legal status of the property:

Verify the Will: Check if the will specifies who inherits the real estate and under what conditions.
Confirm Probate Approval: Ensure the probate process is complete, and you have the necessary documentation, such as the grant of probate or estate settlement certificate.
Review Property Deeds: Obtain the property’s title deed to confirm ownership and any existing mortgages or liens.
 
2. Decide How to Proceed
Determine what you want to do with the property based on your circumstances and the wishes of the deceased:

Keep the Property: If you wish to retain the property for personal use, rental income, or as a family asset, ensure all legal ownership documents are transferred to your name.
Sell the Property: If you choose to sell, consider hiring a reputable real estate agent in the area to guide you through the process.
Share the Property: If the property is co-inherited, work with other beneficiaries to decide on a fair resolution, such as joint ownership, buyout, or sale.
 
3. Address Outstanding Obligations
Before you can fully manage or sell the property, handle any existing obligations:

Pay Off Debts or Mortgages: Settle any outstanding loans or financial commitments tied to the property.
Settle Property Taxes: Ensure that any unpaid property taxes are cleared to avoid legal complications.
Handle Maintenance and Utilities: Continue paying for utilities, maintenance, and insurance to protect the property’s value.
 
4. Manage Financial Implications
Real estate often has significant financial considerations:

Inheritance Taxes: Confirm if inheritance taxes are due on the property and ensure they are paid promptly.
Valuation: Get the property professionally appraised to determine its current market value.
Rental Income: If the property is rented, manage the tenancy agreements and decide whether to continue or terminate them.
 
5. Prepare for a Sale
If you decide to sell the property:

Choose the Right Agent: Work with an experienced local real estate agent who understands the market.
Stage the Property: Make necessary repairs or upgrades to maximize the property’s appeal and value.
Complete Legal Formalities: Work with a notary or legal professional to ensure the sale adheres to German property laws.
 
6. Handle Co-Inheritance Situations
When inheriting property alongside other beneficiaries:

Open Communication: Discuss the options openly with all parties to avoid misunderstandings or conflicts.
Seek Mediation if Needed: If disagreements arise, a neutral mediator or legal professional can help reach a fair resolution.
Document Agreements: Ensure all decisions, such as selling or retaining the property, are documented and legally binding.
 
7. Transfer Ownership
If you decide to keep the property:

Update Property Records: Register the property in your name with the relevant German land registry (Grundbuchamt).
Manage Ongoing Costs: Take over financial responsibilities, such as property taxes, maintenance, and insurance.
Use for Personal or Rental Purposes: Plan how you will utilize the property, whether as a residence or an income-generating rental.
 
8. Navigate International Considerations
For properties located in Germany while you reside in Thailand:

Work with a Local Representative: Hire a trusted real estate agent or legal advisor in Germany to manage the property on your behalf.
Understand Cross-Border Taxes: Be aware of any tax implications for owning or selling German property while living abroad.
Arrange Secure Transfers: If selling, ensure the proceeds are safely transferred to your Thai bank account.
 
9. Preserve Sentimental Value
Real estate often holds emotional significance. If the property was a beloved home or family legacy:

Honor the Memory: Consider keeping the property as a tribute or using it to create meaningful connections.
Collaborate with Family: Work with loved ones to ensure the property is managed in a way that respects the deceased’s wishes.
 
10. Seek Professional Guidance
Given the complexity of handling real estate in an estate, professional support is invaluable:

Hire Legal Experts: Engage an inheritance lawyer to navigate the legal requirements of property management and ownership transfer.
Consult Tax Advisors: Ensure you understand the financial implications and obligations tied to the property.
Partner with a Real Estate Specialist: If selling, choose a real estate agent experienced in inheritance properties.
By taking these thoughtful steps, you can ensure that the property is managed in a way that honors your partner’s wishes and provides you with the best possible outcome.