IS IT BETTER TO SELL OR RENT THE PROPERTY YOU'VE INHERITED?

Sell or rent the inherited property?

In the event of inheritance, the direct heirs have the choice of selling the inherited property (or part of it) or letting it out.

When a property (house, flat, premises) is included in the inheritance, it is compulsory to go through a notary. The notary is responsible for settling the inheritance in four stages:

-drawing up the notarial deed (which determines the legal and testamentary heirs),

-The estate balance sheet (listing and valuing the assets owned by the deceased and intended for inheritance),

-the inheritance declaration for the tax authorities (which lists the net taxable assets of each heir),

-the division of the property (in accordance with the share due to each heir in the inheritance declaration).

Property dismemberment

When the assets are divided, the heirs express their preference as to how they wish to receive the inheritance. If the inheritance concerns the deceased's spouse and children, they generally opt for dismemberment: the direct heirs receive their share, but the spouse receives the remainder.usufruct housing, i.e. they can stay there.

The spouse may not opt for dismemberment. In this case, by default, he or she becomes the owner of a quarter (25%) of the property he or she occupies, with the direct heirs sharing the remaining 75% equally.

The law provides for various other cases of division. If there are only children, even if they come from several marriages, they will share the property equally. If the deceased has no direct heirs, several situations may arise.

In the case of brothers and sisters (and other relatives), the property is divided equally. If it is to be shared between a spouse and a parent, the former receives 75% and the latter 25%.

If the spouse has two parents, he or she receives 50%, with the other half shared between the two parents.

Joint ownership

L'joint ownership is the default formula adopted in the days following a person's death. It consists of making the heirs owners of the estate without it being divided into shares. This means that if one of the heirs wishes to benefit from his or her share, he or she must request the termination of thejoint ownership and obtain the agreement of all the undivided co-owners, i.e. the heirs affected by the joint ownership.

A number of specific rules govern thejoint ownership. Decisions on everything to do with the management of the property (maintenance, works, letting, etc.) must be taken by the joint owners. The law stipulates that in the event of disagreement between the parties, the decision must be approved by two-thirds of the undivided co-owners.

Each of the undivided co-owners may leave the joint ownership arrangement at any time. They must then sell their share, either to the undivided co-ownership group itself, or to one of the parties, or to an outside party, with the agreement of the other undivided co-owners.

Undivided ownership may extend beyond the formalities of the succession. In this case, the heirs can have the notary draw up a undivided ownership agreementThe agreement must be limited in time. The agreement must be limited in time. It lasts for a maximum of five years.

La Family SCI

As a general rule, in the event of joint ownership, the property is sold to one of the joint owners or to an outside buyer. The indivision then ends and the heirs share the proceeds of the sale.

However, undivided co-owners may also opt for a SCI, non-trading property company. The joint owners become partners in a family SCI. They each own a share of the property, which they can pass on to their heirs. The creation of a SCI requires the appointment of a manager, who may be chosen from among the partners. In most cases, a professional is appointed.

How do I sell an inherited property?

To sell an inherited property, whether a house, land or flat, the decision must be unanimous among the heirs. The proceeds of the sale will then be divided between the undivided co-owners according to their share of the estate. The sum received must be declared and will be subject to income tax. property capital gains.

When they inherit a property, direct heirs can choose between selling the property or letting it out. Selling allows each heir to quickly receive a sum of money corresponding to their share. Renting out the property means remaining in joint ownership or setting up a joint venture. Family SCI to manage all rental aspects.

Sell or rent the inherited property?