Dividing an estate correctly among heirs

The division of an estate among heirs does not usually begin with the question of who gets the house or the money in the bank account. It is often necessary to first establish who the heirs actually are, which assets form part of the estate, and whether the deceased had any liabilities. In an emotionally difficult situation, arrangements that appear straightforward at first glance may later give rise to lengthy disputes. A clear course of action helps to avoid this.

The succession opens, but assets do not immediately pass into one person's name

A succession opens upon a person's death. If an heir does not disclaim the inheritance within the prescribed period, the inheritance is generally deemed to have been accepted. It is important for heirs to be aware that not only assets pass with the inheritance. The deceased's debts, contractual obligations and potential disputes may also form part of the estate.

Where there are multiple heirs, the estate belongs to them jointly in ideal shares until it is divided. This means, for example, that one heir cannot unilaterally sell an apartment forming part of the estate, withdraw all the money from an account, or give away a valuable item. Decisions concerning jointly held estate assets generally require the cooperation of all heirs.

The first practical step is to approach a notary to initiate probate proceedings. The notary establishes the identity of the heirs, verifies the grounds for the right of succession, and issues a certificate of succession upon conclusion of the proceedings. The certificate of succession confirms who is entitled to the inheritance and in what share, but it does not yet divide specific assets among the heirs.

A complete picture of the estate must be obtained before division

Decisions on dividing an estate should not be made on the basis of assumptions or family members' recollections alone. It is prudent to compile an overview of the assets and liabilities. This helps to assess whether the estate is actually as valuable as it initially appears and which method of division would be reasonable for all parties.

A complete picture should include immovables and apartment ownerships, funds held in bank accounts, vehicles, company shareholdings, securities, valuable household assets, claims against third parties, and any potential insurance benefits. It is equally necessary to identify loans, tax debts, outstanding utility costs, risks arising from guarantees, and other liabilities.

Particular care must be taken in matters concerning the matrimonial property regime of spouses. If the deceased was married and property was acquired during the marriage from jointly owned assets, the entire asset may not necessarily form part of the estate. It may first be necessary to separate the surviving spouse's share of the jointly owned property. Only the share belonging to the deceased then passes into the estate and is divided among the heirs.

For example, an apartment used as the family home may be registered solely in the deceased's name, but this does not automatically mean that the entire apartment forms part of the estate. The correct outcome depends on the matrimonial property regime applicable to the spouses, when and how the apartment was acquired, and whether a matrimonial property contract was concluded.

Agreement is generally the best course

Where the heirs are able to communicate calmly and share a common understanding of the value of the assets, an estate division agreement is usually the quickest and most cost-effective solution. The agreement sets out which assets pass to whom, whether any heir is to pay the others monetary compensation, and who bears the costs associated with the division.

Division does not necessarily mean that every asset is physically split into parts. An apartment may be retained by one heir, who pays the others the value of their respective shares. A vehicle may go to the heir who uses it on a daily basis, while the other heir receives more money or other assets. Where the estate includes a business, consideration must be given not only to its value but also to whether any of the heirs wishes and is able to continue the enterprise.

An agreement functions only where it is based on sufficient information. If one heir is unaware that the estate includes, for example, a savings account, a shareholding in a company, or a debt claim, justified mistrust may arise at a later stage. It is therefore prudent to verify documents and registry data before signing and, where necessary, to have significant assets professionally valued.

An estate division agreement must generally be concluded in notarial form. The notary explains the legal consequences of the transaction and arranges for the relevant entries to be made in the land register and other registers where required. Notarial form is not a mere formality — it helps to prevent situations where the heirs' actual agreement remains unclear or does not permit the assets to be properly transferred at a later stage.

When heirs cannot reach agreement

Disputes frequently arise not only over money. To one heir, a grandparents' house may represent a childhood home; to another, it may be a costly property whose maintenance is beyond their means. Tension is compounded by situations where one heir has cared for the deceased for years, paid for repairs, or lived on property forming part of the estate.

Such circumstances may be substantively very significant in negotiations, but they do not automatically alter the statutory shares of the inheritance. If one heir claims entitlement to reimbursement of expenses or asserts that another heir has unjustifiably benefited at the expense of the estate, the claim must be established by separate evidence. Payment orders, invoices, correspondence, contracts, and any other available evidence will be of assistance.

Before resorting to court proceedings, it is worth attempting structured negotiations. Sometimes the core of a dispute lies in a differing valuation of the assets rather than in a fundamental unwillingness to reach agreement. An independent valuation or a clearly formulated compromise proposal may help bring the parties closer to a resolution.

If agreement is nonetheless not reached, division of the estate may be sought through the courts. A court may divide the assets, award specific assets to one heir subject to an obligation to pay compensation to the others, or decide in favour of another fairly reasoned solution. Court proceedings may be necessary, but they are often time-consuming and costly. It is therefore advisable, before filing a claim, to assess both the available evidence and whether the economic value of the claim justifies the proceedings.

Estate assets must not be used as personal property

Until the estate is divided, all heirs should keep the use of estate assets transparent. If one heir is living in an apartment forming part of the estate, collecting rental income, or using the deceased's vehicle, the other heirs should be consulted and a written agreement reached regarding how costs are to be covered and whether compensation is to be accounted for in respect of the use. Silence may seem like a way of preserving family harmony, but it may later become one of the central points of dispute.

Equally, there should be no haste in withdrawing money from the deceased's bank account, removing assets, or concealing documents. Even where the intention is to cover funeral expenses or to preserve assets, all actions must be documented and explained to the other heirs. Transparency protects both the acting heir and the mutual trust among the heirs.

A will may alter the logic of division

A will may determine who inherits and in what share, bequeath a specific asset to a particular person, or appoint an executor. This does not mean, however, that all questions are automatically resolved. A will may be ambiguous, may cover only part of the estate, or may give rise to questions concerning the compulsory portion.

The compulsory portion may become relevant where the deceased has, by will or inheritance contract, disinherited a minor child, an incapacitated child, or an incapacitated spouse who would otherwise have had a right to inherit under the law. This constitutes a monetary claim, the existence and amount of which depend on the specific family and financial circumstances. This matter should not be resolved on the basis of assumptions made within the family circle alone.

When to seek legal assistance?

Legal assistance should be engaged before communication among the heirs breaks down or before anyone signs a document whose consequences they do not fully understand. Legal advice is particularly necessary where the estate includes real property, a company shareholding, loans, assets located abroad, an ambiguous will, or minor heirs. It is equally necessary where one heir has already taken possession of assets or where other heirs suspect that full disclosure of the estate is not being made.

Eurocity Law Office can help to review the situation calmly, explain the heirs' options in plain terms, and, where necessary, draft an agreement, a claim, or a document to be submitted to the court. Before work commences, it is possible to establish what assistance is actually required and what the scope of the work will be.

A successful estate division does not mean that all heirs receive exactly the same thing. It means that the outcome is reached on the basis of known circumstances, clear values, and a properly executed agreement. The sooner the issues are brought to the table, the greater the prospect of preserving both the value of the estate and family relationships.