House on parents' property - inheritance problems?

Good day!

A few days ago, someone here asked something who is in a similar situation to me, namely that their house is on their parents' property. This is also the case with me. Someone then wrote that this could later lead to problems in the event of inheritance. However, the discussion quickly died down there.

Therefore, here is a concrete question again: What risks exist if your own house is on your parents' property? Especially if you are an only child. As I have now learned, it is apparently regulated in the Building Code that something permanently attached to a property automatically belongs to the property owner. That would mean: Although I paid for my house myself, it belongs to my father. Is that correct?

For property tax, we arranged with the tax office back then (about 20 years ago) that I pay about one-third, and my father pays two-thirds, because my house is on the smaller part of the property. I assume that this means there will be no problems in the event of inheritance, because the tax office knows that this is my house.

But is there anything else to consider? The background was that we wanted to save the surveying and partitioning costs back then, and that a sensible division was also not possible because the driveway is in the middle and from there you can access both houses and the garages at the back.

Matthias

Although I paid for my house myself, it belongs to my father. Is that correct?

Yep, it’s not your house, but your father’s.

For the property tax, we arranged it with the tax office back then (about 20 years ago) so that I pay about one third, and my father pays two thirds, because my house stands on the smaller part of the property. I assume that this will prevent problems in the event of inheritance, because the tax office knows that it’s my house.

Why is that? The property owner is liable for the property tax. You have nothing to do with that. Once again: That is not your house!!!

I assume that this will prevent problems in the event of inheritance

Then you inherit "your" house and will probably have to pay inheritance tax on it.

But is there anything else to consider?

What if your father becomes in need of care? Then "your" house might be gone very quickly because he has to sell it. The same applies in case of enforcement, if the bank (if financed) causes problems.

The background was that we wanted to save on the surveying and partitioning costs back then,

That can easily backfire.

and that a meaningful partition is also not possible because the driveway is in the middle and you enter both houses and the garages at the back from there.

That is always possible. Possibly by working with easements or similar. Your situation would be a no-go for me.

Why is that? The property owner is liable for the property tax. You have nothing to do with that. Once again: That is then not your house!!!

And why do I then receive a property tax assessment notice? Matthias

Then you have managed it according to § 39 AO. In the end, however, it does not matter, since you are still only the user and not the owner. He remains your father, and my comments still apply.

If there is ever an inheritance case, I can clearly prove that the house is to be attributed to me for tax purposes; I just have to dig out all the invoices from back then. I simply cannot imagine having to pay inheritance tax on a house that I paid for myself.

Matthias

If the inheritance case ever occurs, I can clearly prove that the house is to be attributed to me for tax purposes, I just have to dig up all the invoices from back then. I simply cannot imagine having to pay inheritance tax on a house I paid for.

But that's how it is. The property and the house are one unit. Your father can also sell the entire site if he wants to. You can show invoices endlessly and you will just be laughed at. One last time: The property including the structures is 100% owned by your father. You own absolutely nothing. You are a tolerated user. Period. End of story.