Buy-to-let property investment in Luxembourg: what are the effects of the owner's death?

Before embarking on a buy-to-let investment, it is advisable to familiarise yourself with the inheritance implications. What happens if the owner dies? How is the estate shared out if there are one or more heirs? Claude Medernach, Legal Adviser, Family Office Services, takes another look at the rules of sharing and the methods of selling properties.

Pro indiviso estate

If an inheritance procedure is instigated and if no inheritance planning has been undertaken, the deceased’s real estate properties will fall within the estate, in other words will form part of the pro indiviso estate.

Generally, when there is only one heir, the inheritance proves rather easy. However, the settlement of the inheritance may become more delicate and sometimes give rise to conflicts if there are several heirs.

Sharing: amicable or judicial

Article 815 of the Civil Code provides that: “No-one may be compelled to remain in pro indiviso ownership”. This means that any heir may at any time require the estate to be shared out, by means of either:

  1. an extrajudicial procedure or
  2. a judicial procedure.

Sale: negotiated or at auction

If the heirs reach agreement, the asset can be sold in the market: this is referred to as a negotiated sale.
If on the other hand the heirs cannot agree, the judge will appoint a notary to sell the properties at auction.

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