The increase in the number of deaths during the pandemic of Covid It has shot up home inheritances to a record 19,500, according to the latest Statistics data. An inheritance can be obtained through a will (by will of the deceased) or by kinship. But keep in mind that if the property has an outstanding mortgage, the debt is also inherited. In these cases, the heir will not only have to pay the corresponding taxes, such as inheritance tax and municipal capital gains, but will also have to face the monthly loan installments. It is possible to give up the inheritance or opt for a lesser-known alternative: accept the benefit of the inventory.
The life insurances linked to mortgages prevent the heirs from contracting the debts associated with the transfer of property by inheritance. But it is a preventive measure, that is, they must be contracted before the inheritance becomes effective. These insurances have the bank as beneficiary, in such a way that in the event of the death of the mortgage holder, it is the bank that receives the corresponding amount to repay the loan. In this way, the heir will receive the house without mortgage charges.
In case of accept inheritance, the first thing is to go to the notary to be able to own the property. The beneficiary assumes the payment of the mortgage with the same conditions as the deceased, only changing the owner of the same. The problem arises when there are no resources to deal with this debt with the bank.
Likewise, it is possible to accept it at inventory profit. It is a very interesting formula to avoid having to give up the inheritance. It allows the heir to ‘pay’ the mortgage with the rest of the inherited patrimony, up to the value of the rest of the assets. This procedure must be done before a judge or notary and can be a very advantageous option if you have enough assets to not have to give up anything.
There is also the option of give up the legacy. If the heir cannot take over the mortgage, it is not only possible to renounce the house, but it must be a “en bloc” resignation of the entire inheritance. It must be borne in mind that apart from inheriting the mortgage, to accept a home you must also pay the land capital gain and inheritance tax, which will vary depending on the consanguinity with the deceased and the autonomous community where we live.
“The truth is that being able to pay inheritance taxes is not always affordable and it is one of the main reasons why homes are rejected as inheritance. One way of being able to pay the cost of inheriting in more affordable installments is to go to loans with mortgage guarantee, loans that accept the homes to inherit as collateral to grant us the capital we need, “they point out from HelpMyCash.