When an inheritance occurs, real estate is also included in the transfer of assets. 

But how exactly does this process work, what exactly is a property inheritance, Or what types of divisions of assets can be made? Find out everything in this article from Advogados em Braga. 

What is property inheritance?

Inheritance consists of the assets and debts that someone inherits after their death. In the case of real estate inheritance, this occurs when a person inherits a property from someone who has already passed away.

How does property inheritance work?

The inheritance of a property can only happen after... division of assets. The allocation of the property is based on an inventory authorized by a judge.

For this, there are phases For the process to be completed:

1. Opening of the inventory;
2. Payment of fees and taxes;
3. Transfer of inherited property.

What are the taxes and charges associated with inheriting real estate?

The main expenses associated with inheriting real estate in Portugal include:

• Inheritance and Gift Tax (ITCMD)This is the tax applied to inheritances. In Portugal, direct heirs (such as children and spouses) are generally exempt, but it is necessary to check the specific conditions.
• Stamp DutyThis applies to inheritances involving movable and immovable property, and is calculated based on the taxable property value (VPT) of the property.
• Notary and Registry ExpensesThese include costs related to heir identification, public deeds, and registration of the property in the heirs' names.
• Municipal and Condominium FeesIf applicable, such as the annual IMI (Municipal Property Tax).

Contentious partitions and undivided inheritances: what are they?

Contentious partitions and undivided inheritances are two terms associated with the inheritance process. 

An undivided inheritance occurs when the inherited assets have not yet been divided among the heirs and remain under a co-ownership regime.

In the case of contested property divisions, these occur when a couple has problems dividing their assets, making it necessary to resort to the courts. In this process, the court verifies the assets in order to define the division. 

What is needed to start the process of inheriting real estate?

First, the heirs must be identified, where the heirs and the assets to be inherited are defined. For this, the process must take place at a notary's office. 

For the process to be carried out in the best way, there are documents that should be taken into account, such as:

• The death certificate of the deceased person;
• If there is a will, proof of payment of stamp duty must be obtained;
• Between others. 

What to do when inheriting properties with debts?

If an inherited property is associated with debts, the heir assumes those responsibilities, but there are options:

• Settle the Debts: Using personal resources to pay off inherited debts.
• Payment in KindHanding over the property as a way to settle the debt, if the creditor accepts.
• Property for Sale: Selling inherited property to cover debts is permitted, provided it is legally possible and with the consent of the other heirs, if applicable.
• Refusing the Inheritance: In cases where debts exceed assets, the heir may renounce the inheritance to avoid financial liabilities.

What if one of the heirs disagrees?

O Article 2186 of the Civil Code This serves as a basis in these situations. The inheritance must be divided equally among the legitimate heirs, such as siblings and other relatives. 

There may still be renunciation or repudiation of inheritance. Renunciation occurs when the person who has the inheritance is alive, and repudiation occurs when the holder of the inheritance has already died. 

Is it possible to sell inherited property?

It depends on the situation. An heir cannot sell a property without the consent of the other heirs. However, they can sell their share of the inheritance. 

How to calculate capital gains on inherited real estate?

To calculate the capital gains tax on an inherited property, follow these steps:

1. Determine the Acquisition ValueThis corresponds to the taxable property value (VPT) of the property on the date it was inherited.
2. Determine the Selling PriceThis is the price at which the property was sold.
3. Subtract Eligible ExpensesThese include the costs of improving the property's value (e.g., renovations) and sales-related expenses (e.g., real estate commissions).
4. Final Calculation:
   • Capital Gain = Sale Price – Acquisition Price – Eligible Expenses

Capital gains are taxed under the Personal Income Tax (IRS), with applicable exemptions, such as reinvestment in primary and permanent residence.

Is it possible to refuse an inheritance of real estate?

Yes, it is possible that the heirs may not want the inheritance they are to receive. That is why there are legal processes such as renunciation and repudiation of the inheritance. 

• ResignationInheritance is when someone relinquishes their inheritance while still alive, typically transferring their rights to other heirs. This is done through a public document.

• RepudiationWhen, after the death of the owner, the heir decides not to accept the inheritance. This process requires a formal declaration before a lawyer, solicitor, or notary, and may include the execution of a public deed or an authenticated document.

This decision is particularly important when the inheritance involves debts or liabilities that exceed the value of the assets.

Is it mandatory to have an official appraisal of inherited property?

A official property valuation The appraisal of inherited property is very important. This valuation is essential to determine the official value of the property, which can then be impartially declared among the heirs. 

Is it necessary to hire a lawyer to deal with real estate inheritances?

It is not mandatory. However, the presence of a lawyer is very important, as they are a good advisor to mediate any conflicts and fight for the rights of those involved. Furthermore, the presence of a lawyer ensures that the process takes place within legal parameters.

For more information, contact Lawyers in Braga. With lawyers in Braga, you have the best professionals, always available to assist you with any legal matter. 

What is the role of a lawyer in the division of assets among heirs?

In situations involving heirs or legal proceedings, the presence of a lawyer is essential. This is because a lawyer knows how to advise clients legally and mediate the situation in the best way possible within the legal framework. 

Therefore, with regard to divisions and inheritances, the presence of a Attorney specializing in estate division and inheritance. It is crucial for all parties involved. 

Conclusion 

Inheritance of real estate occurs when someone dies and leaves material assets, such as a property, to their heirs. This inheritance can be refused by the heirs after the death of the person who owned the property, or even while they are still alive.

Having a lawyer present throughout the process helps manage it and is also a way to handle the situation legally.