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How Assets and Estates Are Divided Between Siblings

How Assets and Estates Are Divided Between Siblings (2)

How Assets and Estates Are Divided Between Siblings

The period of undivided ownership can be contentious: it is best to avoid it.

When an individual dies, he or she leaves an estate. This entails several inheritance procedures:

 – the inventory of the estate;

 – organising the undivided ownership of the estate.

The heirs are in joint ownership when the estate is opened until the deceased’s estate is divided.

Inheritance in undivided ownership: a complex situation to avoid

When several heirs are called to the succession, the estate is in joint ownership:

 – it is the common property of the undivided heirs;

 – each undivided co-owner is deemed to own a share of the property, according to his or her succession rank.

Rules for the management of undivided property for undivided inheritance

Depending on the nature of the act that an undivided co-owner wishes to perform on undivided property, it is necessary to obtain the consent of the other undivided co-owners:

 – Unanimity of the undivided co-owners: the agreement of all the heirs is essential for any act of disposal of property (sale of a building, etc.), except with the agreement of at least 2/3 of the undivided co-owners and a decision of the court.

 – 2/3 majority: the agreement of undivided co-owners holding at least 2/3 of the undivided rights is essential for any act of administration of a property (day-to-day management).

 – Individuality: the decision of a single undivided heir is sufficient to carry out an act of conservation on a property.

Note the action to claim (the fact of legally claiming ownership of a property) when it concerns an undivided property, and its purpose is to preserve the rights of each undivided co-owner. It constitutes a conservatory act that each of the undivided co-owners can perform alone and not with the unanimous agreement of the co-owners.

Inheritance in undivided ownership: recourse to a third party

The management of undivided property may be entrusted to a third party: the successor. He may be appointed by the judge, the heirs, or the deceased (during his lifetime).

The undivided ownership regime can be a source of conflict if the undivided heirs disagree on the management of the property. It is preferable to avoid it or put an end to it quickly.

Completion of the estate: end of the undivided inheritance

Once the deceased’s property has been divided, the undivided ownership ends.

Division of the property: end of undivided ownership

How Assets and Estates Are Divided Between Siblings (2)

Any undivided heir may, at any time, bring about the sharing of the estate’s assets: sharing puts an end to indivision. Partition may be amicable or judicial. It may result from:

 – the allocation of the various assets of the estate to the heirs, according to the value of their rights in the estate;

 – the allocation to the heirs of the proceeds of the sale of the deceased’s assets, according to the value of their rights in the estate;

 – the repurchase of all the shares by an undivided co-owner from the other undivided heirs.

Good to know: in the event of disagreement between adult and capable heirs at the time of the succession, the lots constituted with a view to the division of the estate must be drawn by lot, apart from the cases listed exhaustively by the law, such as preferential allocation.

Early settlement: thanks to the provisions of the deceased

It is possible, during his lifetime, to make provisions to anticipate the settlement of the succession. These provisions make it possible to avoid any discord in the event of disagreement between the potentially undivided heirs:

Undivided inheritance: not in some instances

Provisions

Characteristics

Donation

Living donations allow certain assets to be distributed among the heirs:

– the assets leave the donor’s estate and enter directly into that of the beneficiary;

– when the estate is opened, the heirs are not in undivided ownership of the property.

Shared donation

A shared donation or transgenerational shared donation makes it possible to pass on assets to the heirs during one’s lifetime. The assets are distributed in the form of lots that are not subject to joint ownership when the estate is settled.

Will

A will allows a specific asset excluded from undivided ownership to be allocated to one particular person. For professional counselling in this kind of matter, you can go to a will lawyer.

Precedent donation

This allows the allocation of jointly purchased property to the surviving purchaser.

Good to know: a universal legatee can act to revoke a donation for ingratitude.

Inheritance in undivided ownership: exclusions

This is known as preferential allocation.

Even if there are several heirs, certain assets of the deceased’s estate are excluded from joint ownership and allocated to specific beneficiaries:

 – Housing: the surviving spouse or civil partnership partner has the right to remain in the family home. Therefore, the dwelling is excluded from undivided ownership; only the spouse or partner has the right of enjoyment over the property.

 – Business: the heir who participates in the operation of the deceased’s business may be allocated the business.

Inheritance in undivided ownership: exclusions

This is known as preferential allocation.

Even if there are several heirs, certain assets of the deceased’s estate are excluded from the joint ownership and allocated to specific beneficiaries:

 – Housing: the surviving spouse has the right to remain in the family home. Housing: the surviving spouse has the right to remain in the family home. Therefore, the home is excluded from joint ownership; only the spouse or partner has the right to use the property.

 – Business: the heir who participates in the operation of the deceased’s business may be allocated the business.

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