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Attorney Milena Nowicka
What is the division of an inheritance and what is its significance?
When is the division of an inheritance necessary?
Types of inheritance division: notarial, contractual, and court-ordered.
When to divide an inheritance in court and when before a notary.
Division of the inherited property: how does it work?
Costs related to the division of an inheritance – how much will it cost?
Did you know that a court decision confirming the acquisition of an inheritance or the preparation of a notarial certificate of inheritance is not enough to freely dispose of the deceased’s property? If there are several heirs, at this stage none of the elements forming part of the estate is yet your exclusive property. For that, another step is required – the division of the inheritance.
In one of the previous articles published on the blog, concerning the confirmation of inheritance acquisition, you will find a detailed explanation of the previous step, i.e. confirming your rights to the deceased’s property before a court. It is worth recalling, however, that at this stage the court merely determines who inherits and in what share (expressed as a fraction). The situation is similar when you choose the alternative route – confirming your inheritance rights before a notary, who issues a notarial certificate of inheritance, a document that has the same legal effect as a court decision.
At this point, however, your inheritance matters are still not fully settled. To explain why, it is best to use an example.
Imagine that you inherit an estate together with your sister, in equal shares. Your inheritance share therefore amounts to ½. What does this mean in practice? A share of ½ belongs to you in each and every component of the deceased’s property, even the smallest one.
At first glance, it might seem that if, for example, the estate included two identical properties of the same value, one should be yours and the other your sister’s. Until the inheritance is divided, however, the situation looks completely different. Your situation is analogous to one in which you jointly purchased both properties. In short, at this stage neither of you is the sole owner of either apartment; instead, each of you holds a ½ share in both.
How can this be changed? This is where the division of the inheritance comes into play. It consists of nothing more than bringing about a situation in which the individual elements of the estate become your exclusive property.
Just as there is no obligation to confirm your inheritance rights before a court or notary, there are also no regulations forcing heirs to divide the estate among themselves. Theoretically, you can jointly manage each component of the deceased’s property for the rest of your lives.
In practice, however, this is burdensome. Let us return to the example of two jointly inherited properties.
Under the regulations, managing jointly inherited property requires the consent of a majority of the co-owners with regard to so-called acts exceeding ordinary management. You therefore cannot independently decide, for example, to carry out renovations. You are also jointly liable for the jointly inherited property—even if in practice only you care about the future of the apartments and their proper maintenance. In many respects, this is therefore an unfavorable situation for you.
It is precisely for these reasons that so many people decide to carry out a division of the inheritance, even without any compulsion under the law.
As a side note, it is also worth mentioning that no division of inheritance is carried out at all when you are the sole heir—in such a case, the inherited assets are from the beginning your exclusive property, and there is therefore nothing to divide.
Just as you can confirm your inheritance rights before a court (by obtaining a confirmation of inheritance acquisition) or before a notary (who issues a notarial certificate of inheritance), you also have two available routes when it comes to dividing an inheritance.
This is based on drawing up an agreement between the heirs regarding the division of the estate and requires the cooperation of all heirs. In theory, such an agreement may take any form. However, if the inherited property includes real estate or a business, a visit to a notary will be necessary. And given that an estate very often includes a house or an apartment, you will usually encounter the term “notarial division of inheritance” rather than “contractual division of inheritance.”
This type of division involves conducting proceedings before a court and is therefore a more formal route. It requires preparing documents, filing appropriate applications, and participating in hearings. Usually, the case cannot be concluded in a single court visit. For this reason, most people decide to carry out a court-ordered division of inheritance with the help of a lawyer—especially when there is a serious conflict between co-heirs regarding the manner of division.
A court-ordered division of inheritance is primarily used when there are disputes between the heirs or other issues requiring court intervention. In such cases, the court decides how the estate will be divided. This usually takes more time, but on the other hand, the costs may turn out to be lower than those associated with a notary. For economic reasons, heirs sometimes choose the court route even when they fully agree on the division of the inheritance.
Dividing an inheritance before a notary is much faster—usually a single visit is sufficient. It is also less stressful, as the very prospect of going to court can be nerve-racking. In a notarial division of inheritance, fewer formalities are required than in court. On the downside, this option may prove more expensive. Moreover, it is available only if there is full agreement regarding the division of the inherited property.
The law distinguishes three methods of dividing an inheritance:
The costs of dividing an inheritance will vary, first of all, depending on the chosen route, and secondly, on the complexity of the case and the value of the inherited property. However, it is possible to indicate certain fixed elements that make up the amount you will have to pay in connection with the division of the inherited estate.
In the case of a visit to a notary, this will be the notarial fee, the amount of which depends on the value of the inheritance division agreement (i.e. the value of the estate subject to division). In the case of a court-ordered division of inheritance, you must pay a fee for filing the application. It amounts to 500 PLN if there is no agreement on the division of the estate, or 300 PLN if you submit a joint, agreed proposal. It may also turn out that the division of the inheritance requires the simultaneous termination of co-ownership (e.g. when the deceased was a co-owner rather than the sole owner of a property). In such a case, the fee is 1,000 PLN, or 600 PLN in the event of an agreed proposal.
A separate issue is the fee for professional legal assistance. Costs will vary depending on the offer of a particular law firm and the complexity of the case. Nevertheless, a lawyer specializing in inheritance law can be a great support during the proceedings. They will handle the preparation of documents and represent you in court. If you are unable to reach an agreement with the other heirs regarding the division of the estate, the lawyer will also ensure the collection of arguments and evidence that increase the chances that the court will divide the inheritance in a way that is favorable to you.
