Not every inheritance is a gift. A property with an outstanding mortgage, the deceased’s debts, community fees or even squatting can turn the inheritance into a problem. Before signing anything, it’s worth understanding the three legal routes and their consequences: accept, accept with protection or renounce an inheritance that includes a home.
First: an inheritance is a complete package
You cannot inherit the house and reject the debts: you accept or you renounce the whole package (assets and liabilities). That is why the first real step is to make an inventory: what the property is worth at market price, what mortgage remains outstanding, what debts exist (community fees, Tax Agency, loans) and what the administrative costs will be.
Option 1: pure and simple acceptance
This is the normal route when the numbers are clearly positive. Be careful: you are liable for the inheritance’s debts even with your own assets if the liabilities exceed what is inherited. Acceptance can also be implied: using the house, selling it or disposing of the deceased’s assets may be considered acceptance even if you haven’t signed anything.
Option 2: acceptance under benefit of inventory
The prudent option when there is doubt: you accept, but your liability is limited to what you receive; your personal assets are protected. It is formalised before a notary with an accurate inventory of assets and debts and has strict deadlines, so it’s wise to act quickly.
Option 3: renounce
Renunciation is carried out before a notary, is free, total (you cannot renounce “partially”) and irrevocable. Two important warnings: if you renounce “in favour of” someone specific, for tax purposes it is treated as if you accepted and then donated (two taxes); a clean renunciation is the simple, plain renunciation. And your share does not disappear: it passes to the next in the line of succession, often your own children, who if minors will need court authorisation to renounce in turn. Renouncing without informing the rest of the family only shifts the problem.
The typical case: a house with a mortgage
A property having a mortgage does not mean the inheritance is bad. If the house is worth €180,000 and €60,000 of loan remains, there are €120,000 net: you accept, sell, cancel the mortgage at the notary and split the remainder. Renunciation only makes sense when total debts exceed the real value of the assets, and you cannot know that without valuing the property at market price.
How to decide sensibly (and in time)
The decision is about numbers, not intuitions: request a real valuation of the property, add up debts and costs, and compare scenarios. And don’t miss the deadlines: the 6-month tax periods keep running while you decide, and a notarial request may force you to state your position within 30 days.
At Mayrasa we help with the part we know best: what the property is really worth and what would come out of a sale, and through our real estate advisory we connect you with the right professionals for the rest. With the numbers in front of you, the decision is almost always clear.
