Undivided estate

An undivided estate can occur in case of death (between heirs to the estate), divorce, a legal separation, and the end of a registered (notarial) partnership between (former) spouses in relation to their community (marital) property. The indivisibility will continue to exist until the distribution of the community property, followed by the delivery of the allocated assets to the parties.

If you are the sole heir to an estate, no undivided estate will exist. Nor will an undivided estate exist if a distribution of assets has been established by means of the will of a parent in which the entire estate of this parent accrues to the longest-living spouse and the children will only obtain a claim on the longest-living spouse to the size of their share to the estate.

The share in the proceeds from the undivided estate must be reported annually, even if you have not yet received this share. With respect to the deduction of your share in all costs associated with the proceeds from the undivided estate, such as management costs and interest, expenses and depreciation, the same rules apply as to the proceeds from this source, which are not part of the undivided estate.

The proceeds from an undivided estate must be broken down by the type of source: company (profits), movable assets, immovable properties, or other income, and subsequently entered at the relevant question (source) on the return form. The rules of the source in question also apply to your share to the proceeds from the undivided estate. With respect to minor children with a right to proceeds from the undivided estate that are not part of the personal income, this income will be taxed at the parent with the authority over the minor child.