Dissolving a Community of Heirs:
Ways out of the forced community.
Several heirs – one estate: the community of heirs arises automatically and is designed to be dissolved. Until then, however, no one may dispose of the account or the property alone. This guide sets out the five ways out of the community, their costs and risks – and how to avoid an escalation.
How the community of heirs arises – and why it creates deadlock
If the deceased leaves several heirs, they form a community of heirs by operation of law (§ 2032 BGB). The estate belongs to all of them jointly, as joint owners: no co-heir holds "his third of the house", but only a share in the estate as a whole. The consequence: the heirs may dispose of individual estate assets – the account, the property, the securities portfolio – only jointly. A single co-heir alone can block a sale. This is why the community of heirs is not intended as a permanent arrangement but as a community for winding up the estate – each co-heir may demand the partition at any time (§ 2042 BGB).
Who decides pending dissolution?
Until the estate is settled, the heirs administer the estate jointly (§ 2038 BGB). Measures of proper administration – such as continuing a tenancy agreement, necessary repairs, or the termination of contracts – are decided by the majority according to inheritance shares. Extraordinary measures and dispositions of estate assets require unanimity. Only necessary preservation measures (e.g. a burst pipe) may be arranged by any co-heir alone. Ongoing costs such as property tax and insurance are borne by the community; for liabilities of the estate, the co-heirs are liable as joint and several debtors (§ 2058 BGB).
How to exit the community of heirs
- 1. Deed of division: The optimal route. The heirs agree on who receives what and who pays out whom. If the estate includes a property, the agreement must be notarised – as both a notarial practice and a specialist legal firm, we accompany both steps under one roof.
- 2. Sale of the inheritance share: Each co-heir may sell their entire share without the consent of the others – even to third parties. The contract requires notarial certification (§ 2371 BGB); the remaining co-heirs are entitled to a right of first refusal of two months (§ 2034 BGB).
- 3. Withdrawal by settlement: A co-heir withdraws from the community of heirs in exchange for a settlement payment; their share accrues to the remaining heirs. This can be done without any particular form and is often the quickest solution – nevertheless, the settlement should be recorded in writing to ensure evidential certainty.
- 4. Partition auction: For properties, the last resort: Any co-heir may apply for this at the local court (§ 180 ZVG), even against the wishes of the others. However, caution is advised – the proceeds are often below market value, the process often takes longer than a year, and anyone can bid, including a co-heir who is in dispute with the others. A joint private sale is almost always the better option economically. Our guide “Inherited Property”.
- 5. Action for partition of the estate: A last resort when nothing else helps: an action seeking consent to a partition plan. This requires the readiness for partition of the entire estate – the procedure is correspondingly complex and should be well prepared.
Practical tips for co-heirs
Most communities of heirs do not fail because of the law, but because of emotion and lack of transparency. It has proven effective to gain an early, complete overview of the estate (if necessary via the right to information and the inventory of the estate) to have properties valued by a neutral expert, to agree deadlines and interim goals in writing – and, in the event of entrenched positions, to seek an agreement moderated by a lawyer try before the partition auction destroys value. If a co-heir who is also entitled to a compulsory portion has been overlooked, our Compulsory Portion Guide can help.
Avoiding a Community of Heirs from the Outset
Anyone who drafts their will can avoid later disputes: through a sole heir with legacies in favour of the others, through clear partition instructions, or through Execution of wills, in which a neutral party carries out the division. How a robust will is created is explained in our Will Guide – as a notary, we notarise the appropriate solution.
Briefly answered
Can a co-heir sell the property alone?
No. Estate assets can only be disposed of jointly by all co-heirs. However, a co-heir may sell their entire share of the estate – notarised and subject to a two-month right of first refusal for the other co-heirs (§§ 2371, 2034 BGB).
What is a partition auction – and does it make sense?
The partition auction (§ 180 ZVG) forcibly dissolves joint ownership of a property; any co-heir may apply for it. It is a last resort: the proceeds often fall below market value, and the process takes a long time. An amicable private sale almost always achieves more.
How can I quickly get out of a community of heirs?
The quickest way is through withdrawal by settlement – you leave in exchange for a settlement payment, and your share accrues to the remaining co-heirs – or through the notarised sale of your share of the estate. Neither requires unanimous agreement on the distribution of the estate.
Who pays the deceased's debts?
The co-heirs are jointly and severally liable for estate liabilities (§ 2058 BGB) – creditors can hold any co-heir liable for the full amount; internally, this is settled according to inheritance shares. In the event of over-indebtedness, liability limitations such as estate administration or estate insolvency proceedings should be examined.
How long can a community of heirs exist?
There is no statutory time limit – some communities exist for decades. However, in principle, any co-heir may demand the division at any time (§ 2042 BGB). The earlier the division is carried out in an orderly manner, the lower the loss of value and conflicts.
Stuck in a community of heirs?
We provide you with an overview, quantify your position, and carry out the division – through negotiation, structuring, or in court.