Saying goodbye to the deceased is an emotionally very difficult situation. Unfortunately, the worries don’t end there, because there are inheritance proceedings to be held, during which the estate is divided among the heirs. We will advise you on how best to handle this difficult situation, what to do in the event of the deceased’s debts and how to avoid disputes and deal with the other heirs.
The purpose of the succession proceedings is to determine what property belonged to the deceased person and to whom the estate should belong or how the property should be divided. It begins when the information about the death reaches the court, which then initiates the probate proceedings. It is the court that appoints the competent notary and entrusts him with the management of the proceedings. The heirs cannot therefore choose the notary themselves, you can only subsequently find out which notary handles the succession.
The notary subsequently carries out an inquiry into the size and content of the deceased’s estate. In doing so, he/she contacts the persons with whom he/she needs to deal, it is not necessary to actively seek them out. The essential information for him is whether a will , a contract of succession or, for example, a deed of disinheritance has been drawn up . That is why he always consult the Central Register of Wills maintained by the Chamber of Notaries. However, they may not find a will there even if it has been validly drawn up, as the law does not require a notarial deed or any other similar form. A bequest in a will is an important factor that can influence how long the succession procedure takes.
The notary can find out more by contacting banking houses and insurance companies, consulting the Land Registry, the Commercial or Trade Register and other similar records. These investigations may be considerably prolonged if the property is partly located abroad. In such a case, the usual few months of inheritance proceedings may turn into a year or more. If one of the heirs is a minor, this may also add to the length of the process, as the guardianship court must approve his or her acts.
In the proceedings, the value of the property is ascertained, as well as the amount of debts. However, if it is clear that the assets are not of high value and there is a consensus between the heirs, it is sufficient if they agree on the value of the assets. The value of the inherited property is primarily determined from the joint declaration of the heirs.
However, if there are completely different ideas between the heirs as to the value of the property and no agreement can be reached (or if they agree on an obviously incorrect value), expert opinions from an expert selected by the notary are used to carry out a valuation of the real estate, but also of larger movable and other items included in the estate.
However, other disputed facts may arise in the course of the estate proceedings which must first be decided (e.g. the authenticity of a claim that would fall within the estate). If the disputes are not purely legal but factual, it is not for the notary to establish and assess the facts in the succession proceedings and the matter is therefore dealt with in separate proceedings before the court.
Significant gifts made by the testator in the last three years before his death to certain heirs may also complicate the situation in the succession proceedings. This can lead to so-called collation, i.e. the equitable distribution of values given away during the testator’s lifetime.
Tip: We have dealt with the complications in inheritance proceedings and specifically with collation in a separate article.
Avoid disputes with other heirs
If there are disagreements between the heirs regarding the amount and distribution of the inheritance, we recommend that you consult a specialist about the best solution to avoid conflicts in the family.
At the end of the proceedings, a final hearing is held to which all potential heirs are invited. Here, any will and inventory of the estate is read out. If any assets are discovered at a later date, they will be discussed in a supplementary procedure.
Even if there have been expert opinions, this does not prevent the conclusion of an agreement on the division of the inheritance. However, do not confuse it with the succession agreement concluded between the testator and the heir. In this case, however, it is an agreement between the heirs on how the inheritance is to be divided. It is certainly a quicker and better solution than waiting for the inheritance to be divided according to shares and then agreeing on how to pay each other.
The assets can be specifically defined in the agreement and distributed to each heir. Similarly, it is possible to determine who rejects the inheritance. If the property cannot be divided in this way, it may be stipulated that the heir of property more valuable than his share shall pay his siblings or other heirs within a certain period of time, and the amount to be paid to them shall be specified.
In order to be valid, the agreement on the settlement of the inheritance must be concluded before a notary or a court and requires the consent of all the heirs. It must be linked to the entire estate of the testator.
Tip: Inheritance is often associated with the creation of co-ownership. What are the advantages and disadvantages of co-ownership? And what about the possible division of ownership? Find out in our other articles.
However, if the heirs are unable to reach an agreement, the notary issues a resolution on the division of the inheritance according to the legal shares of each heir. This concludes the succession proceedings.
A certain level of debts is often present in an inheritance and the heirs also share them. An outstanding consumer loan or mortgage need not be a barrier if the value of the deceased’s assets exceeds the debts. However, heirs are not obliged to accept the inheritance (with or without debts) and have the right to disclaim the inheritance. In principle, they are offered three options for doing so.
The inheritance can also be renounced during the lifetime of the testator.
Tip: We have discussed the issue of refusal of inheritance in detail in our earlier article.
The primary expense associated with the death of a person is funeral expenses. The heirs should share it in the proportion in which they have divided the inheritance.
In addition, the notary’s fee must be taken into account. This is set on a percentage basis, based on the value of the deceased’s estate and determined by decree. The lowest fee is set by the decree at CZK 2,000, or CZK 1,000 in the case of no or insignificant assets.
The notary’s fee is based on the value of the estate. It was increased in 2023:
In addition, the notary is entitled to reimbursement of expenses reasonably incurred in connection with the performance of his/her acts (e.g. telephones, copies, photocopies, postage, etc.) in the amount of CZK 300.
There is still a lot of confusion about tax in the context of inheritance proceedings. It is really simple, as inheritance tax on real estate and movable property was abolished many years ago. And inheritances acquired by individuals are also exempt from income tax.
Some parts of the inheritance do not cause any problems for the notary or the heirs. In the case of a financial account balance, it is enough to know the heirs and their shares and distribution is easy. The wrinkles on the forehead of those involved often only come with the inheritance of real estate. Do they need to sell the property and share the proceeds of the sale, or do they share it together? And what about the inheritance of a condominium? These are questions that are often asked.
In the case of inheritance of a flat or other property owned personally by the deceased, the situation is usually less complicated. In particular, it is necessary to have a correct valuation of the property and it must be clarified whether or not the apartment was part of the community property. An expert is usually called in to value the property. After that, the proceedings are carried out in the same way as for other property. One of the heirs may take possession of the property, with the other heirs receiving property of an adequate value (if they share equally), or the heir undertakes to pay the other heirs. Another and relatively common option is for several heirs to acquire the property in joint ownership.
After the final decision has become final, the notary also ensures the registration of the heir as the new owner in the land register. The heir becomes the owner of the property at the time of the legal validity of the decision and not by the registration in the land register.
In the case of cooperative flats, the situation is usually more complicated because the owner is a housing cooperative and only the cooperative share is inherited. The ideal situation is if the deceased had only one heir. The co-operative share and therefore the right to rent passes to him.
The situation becomes more complicated if there are more than one heir and it is necessary to determine only one who will be a member of the cooperative, as the cooperative’s statutes do not recognise more than one. Again, the agreement takes precedence. If one of the heirs is more interested in the apartment and the others are satisfied with other assets from the estate or a payout, they can conclude an agreement to that effect.
If such an agreement is not possible, e.g. because there are no other assets in the estate and none of the heirs has sufficient funds to pay the others, an agreement can be made to the effect that one of the heirs becomes the purchaser of the share and pays the other heirs within a certain period of time during which he sells his cooperative share.
Another option is if the cooperative share was held jointly by the spouses. In this case, the share is not directly discussed in the probate proceedings and passes directly to the other spouse. If there are other heirs, the so-called “claim for joint membership of the housing cooperative against the surviving spouse”, which amounts to one half of the market value of the cooperative flat in question, is discussed.
You do not have to worry about inheritance proceedings. The notary will guide you through the entire procedure and try to bring the heirs to an agreement. However, if you feel that the agreement is unfavourable to you and that you will be deprived of your rights, or if you do not understand certain situations, do not hesitate to seek advice in good time.
Tip: You can learn more about inheriting a cooperative apartment in our next article – Can you inherit a cooperative apartment? How is the transfer done?
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Ondřej is the attorney who came up with the idea of providing legal services online. He's been earning his living through legal services for more than 10 years. He especially likes to help clients who may have given up hope in solving their legal issues at work, for example with real estate transfers or copyright licenses.
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