Inheritance question in construction financing

Good day,

my friend built a house 12 years ago and, of course, financed it. Yesterday, he included me in the contract. That means, if something happens to him, everything will transfer to me. (The house still has to be paid off for 9 years at the current time). Now my question is: This is not really legally correct, is it? I am not an heir and would therefore not inherit the house, right? The situation is this. My friend has no family left, except for some half-siblings somewhere, whom he has never met and does not know if they are still alive, if they had/have children or anything like that. As far as I know, these half-siblings would still become heirs. Does having my name in the financing have any legal value? Or does he additionally have to create a will? If anyone could help us with this, we would be grateful. :-)

Thank you very much in advance!

Best regards M. Winter

He had you put in the financing contract, do I understand that correctly? Are you also listed in the land register? The land register regulates ownership, the financing has nothing to do with that; it’s only about who is responsible for the debts. If I understood you correctly, you are now financially involved and have to help pay off the house, but do not have any ownership in the house o_O. Not even in the event of inheritance (but you still have to pay – as far as I know). Are you aware of that?

Regarding inheritance law: If there really is no spouse, no children/grandchildren, and/or no parents, the half-siblings would actually inherit. You are not married, so you do not inherit (it doesn’t change that you are involved in the financing). For this, your boyfriend would indeed have to make a will naming you as (sole) heir. To my knowledge, siblings do not have a compulsory portion right, so the house would belong entirely to you in the event of inheritance – assuming, as said, he names you as sole heir in a will. But consider inheritance tax. Since you are neither related nor married, you only have a small exemption amount (I think €20,000?). Everything above that must be taxed – at a rate of 30%!!!

Do you want to get married? That would be the easiest solution. That way you would become an heir even without a will. But note: A will would probably still be necessary as a married couple; I don’t want to be definitive, but in this case (married, childless) the spouse would inherit I believe 3/4 by law compared to half-siblings. The remaining quarter would only be passed on with a will. However, spouses have a much higher exemption amount for inheritance tax (€500,000), so marriage would already solve this "problem" to a large extent.

Will you be entered in the land register? Then you would already own a share of the house anyway. In the event of inheritance (with a will), you would only inherit his share of the house since the rest would already belong to you. That would – for unmarried people – save at least part of the inheritance tax, depending on the value of the house. However, transfer of real estate also involves gift or real estate transfer tax (I don’t know the amount). Married couples also have (higher) exemptions for gift tax than unmarried couples, I believe!

In short: Go to a lawyer, get advice on what is best in your situation. In your situation, many arrangements would be possible. Consider whether you might want to get married. Because that would probably already solve most of the "problems"; especially concerning taxes (whether in the event of inheritance or ownership transfer)! What’s the use if you are named in the will and inherit but have to pay a lot of tax (depending on the house value).

All information without guarantee :D.

You have to go to the land register. If both of you are listed there and he dies, his share will still not go to you according to the inheritance law. Get expert advice. The will is the important thing, you could have saved yourselves the hassle with the financing.

I would also seek legal advice on this. I agree with the previous speakers. It can't hurt for you to be entered in the land register. You already have the financing to deal with...

Inheritance law is one of the most complex ...
You absolutely must consult an inheritance law lawyer. You can't avoid it!
Good luck!

Brief regards

Not only the inheritance is a risk. Separation also poses a significant risk.