Division of Inheritance – What Does the Distribution and Court Hearing Look Like?

Inheritance often stirs many emotions. Following the death of a close relative, not only do grief and a sense of loss arise, but also the issue of dividing the estate accumulated by the deceased during their lifetime. While the process of confirming the acquisition of the inheritance, whether based on the deceased's will or statutory law, proceeds relatively quickly, the division of the estate itself can generate conflicts among family members and often requires resolution by the court.

Why is the division of the estate so important?

The purpose of the division of the estate is to allocate the assets left by the deceased to the individual heirs. Until the division of the estate is conducted, there exists a co-ownership of the entire estate among the heirs in fractional parts. Consequently, each heir is entitled to a specific share (e.g., ½, ¼) in each item belonging to the estate. This results in the heirs being unable to freely dispose of the items belonging to the estate.

Conducting the division of the estate enables the termination of the co-ownership of the estate, and consequently, the assignment of its individual components to specific individuals. As a result, each heir knows exactly what they have received as part of the inheritance from the deceased, thus organizing the deceased's financial affairs.

What are the forms of estate division?

The division of the estate can take various forms. However, in practice, the following variants are encountered:

• division in kind – each heir receives specific items included in the estate,
• division of the estate and distribution of the received amount – occurs particularly when division in kind is impossible or significantly difficult due to the nature of the item, or when the heirs do not wish to retain the items included in the estate for themselves,
• assignment of items included in the estate to one of the heirs with the obligation to compensate the others – most commonly applies to estate components that would be difficult to physically divide.

Contractual and judicial division of the estate – differences

The division of the estate can be conducted by the heirs in the form of a concluded agreement, under which each receives specific components of the estate. The agreement may impose an obligation of compensation on some heirs. If the estate includes real property, a visit to a notary and the preparation of a notarial deed are necessary. Contractual division of the estate is faster, cheaper, and less stressful than judicial division.

In the vast majority of cases, unfortunately, the heirs are unable to reach a consensus, which complicates inheritance matters. In such cases, the only available solution remains the division of the estate in court. The court, after conducting proceedings regarding the division of the estate, decides how to distribute the assets left by the deceased among the heirs.

What does a hearing on the division of the estate look like?

The proceedings regarding the division of the estate consist of several stages, which include:

• filing an application – any of the heirs is entitled to file an application for the division of the estate,
• payment of court fees – amounting to 500 PLN if there is no agreed division plan, or 300 PLN if the division is accepted by all heirs,
• examination of the case by the court – determining the composition of the estate, the shares of individual heirs in the estate, and the possibilities of dividing the estate mass,
• decision on the division of the estate – a final ruling issued by the court, which specifies in detail which estate components are to be assigned to specific heirs, or decides on the division of money obtained from the sale of the estate.

How much does it cost to initiate a case for the division of parents' estate?

The costs of proceedings regarding the division of the estate left by the deceased consist of the following elements:

• application fee – from 300 PLN to 1000 PLN,
• costs of court-appointed experts – usually for the purpose of valuing real estate or movable property included in the estate,
• attorney's fees – if an attorney or legal advisor is appointed, their remuneration is also included in the costs of the division proceedings.

How does the court divide the estate?

In dividing the estate, the court particularly considers:

• the size of shares in the estate – as determined by the deceased's will or statutory law,
• the heirs' proposals regarding the division – the court takes into account the proposals submitted by the heirs, such as the assignment of a specific estate component,
• the possibility of dividing the estate in kind – whether a physical division of items is possible, e.g., dividing real estate into two smaller plots,
• the situation of the heirs – e.g., whether one of them resides in a property included in the estate.

How does the court divide the estate? The key elements are the size of shares resulting from the will or statutory law, the possibilities of dividing the estate in kind, and the situation of the parties – for example, the fact that someone resides in the inherited property while another heir already has their own accommodation. The court strives to arrange the division so that each heir receives assets corresponding to their share. If this is not possible, a system of compensation or sale is applied.

Is the division of the estate necessary?

Polish law does not mandate the division of the estate. However, managing the estate can be difficult, if not impossible, when every decision requires the consent of all heirs. For this reason, sooner or later, heirs decide to divide the estate (with the assistance of adwokat Gdańsk) to effectively manage the inheritance received.

Who bears the costs of the division of the estate?

In the case of a contractual division of the estate, the heirs can agree on who will bear the costs and to what extent. Typically, heirs share the costs proportionally to the size of their shares in the estate, although they can also agree on a different method of settlement.

In the context of judicial division of the estate, the court usually apportions the costs of the proceedings among all heirs in proportion to their shares. However, in justified cases, the court may charge one party with all or a larger portion of the court costs if it finds that the party unjustifiably prolonged or complicated the proceedings.