Estate co-ownership

What is an estate co-ownership?

An estate co-ownership arises when, following the opening of the succession, there are several assets and several co-heirs, so that the deceased’s estate remains undivided. In other words, the heirs become co-owners of the estate, sharing both the rights over the assets and the obligations attached to them until the partition takes place.

 

Origins and legal basis

The estate co-ownership regime has its roots in Roman law, where co-ownership in succession was recognised. Under current Spanish law, although the concept has evolved into a distinct legal institution, estate co-ownership remains the arrangement under which the heirs share the deceased’s transferable estate during the period in which it remains undivided.

 

Main characteristics

• Undivided estate: estate co-ownership means that the assets, rights and obligations forming part of the deceased’s estate remain undivided, and no co-heir may claim individual ownership of a specific asset until the partition stage.
• Co-owners or joint holders: all those entitled to a share of the estate are considered participants, including co-heirs, legatees of a proportional share and, in certain cases, the surviving spouse. Creditors, however, do not form part of the estate co-ownership.
• Administration and disposal: while the estate remains undivided, decisions concerning the disposal, administration or use of the assets must be made jointly. Certain acts require unanimity, such as the sale or encumbrance of assets, while others may be decided by majority, depending on the nature of the act and the assets involved, as may be the case with acts of administration.
• Differences from similar concepts:
  • Estate co-ownership versus ordinary co-ownership: although both arrangements involve co-ownership, ordinary co-ownership may arise in relation to a single asset. In estate co-ownership, the heirs share the deceased’s entire estate, which may include several assets, rights and obligations.

 

Additional considerations

Each co-heir is the sole owner of a share in the estate as a whole, and that share may be freely disposed of by its holder, including by selling it to a third party. However, the remaining co-heirs have a right of redemption for a period of thirty days from the date on which they are notified, in accordance with Article 1067 of the Spanish Civil Code.

There are special regimes, such as succession agreements or regional civil law provisions, including the Aragonese family consortium and the Basque community agreement, which may alter the way in which the estate co-ownership is managed.

If the estate remains undivided for a prolonged period, the heirs may create a civil partnership to facilitate the administration of the assets, particularly where they share common interests and wish to keep the estate together for a specific period.

 

Conclusion

In conclusion, estate co-ownership is the legal arrangement under which the heirs share the deceased’s estate in undivided form following the death. It involves co-ownership of the inherited assets, rights and obligations and is characterised by the need for unanimous or majority agreement for certain acts of disposal and administration.

 

Frequently asked questions about estate co-ownership