The government is expediting the clearance of 7,000 properties from abandoned estates through a fast-track initiative looking to process around 7,000 unclaimed inheritances, with a view to tackling housing shortages. The Ministry of National Economy and Finance is leveraging artificial intelligence to detect forgotten inheritances and shortening the clearance process from four years to 6–12 months. This reform is part of a new legislative bill focusing on foundations, charitable assets, abandoned estates, and state donations, with the government firmly set on its goal to support vulnerable families facing severe housing challenges and and alleviate the ongoing housing shortage. Moreover, efforts will also be directed at modernizing the management and supervision of charitable foundations and endowments, which currently amount to €1.12 billion.

Key Provisions for Abandoned Inheritances

An abandoned inheritance refers to an estate where the heir is either unidentified, unconfirmed, or has not yet been located. The proposed bill outlines the following steps:

1. Identifying Unclaimed Estates: The National Registry will be used to confirm the absence of heirs. The Public Property Secretariat will automatically receive notifications of rejected inheritances through an interface with the Ministry of Justice.

2. Property Valuation: Certified state-registered appraisers (companies or individuals) will determine the estate’s value before assigning an administrator.

3. Accelerated Clearance Process: Processing times will vary based on the estate’s value:

   • Properties worth up to €20,000 will be handled by decentralized administrations with corporate assistance.
   • Those valued between €20,000 and €1,000,000 will be managed by registered lawyers, accountants, and auditing firms.
   • Estates exceeding €1 million will be overseen by auditing firms.

4. Integration into Housing Policy: Once processed, these properties will be utilized for public housing initiatives.

Currently, the government can take five to seven years to clarify the status of an abandoned estate. Authorities must first determine if there are no heirs, if heirs have renounced the inheritance, or if the deceased designated the state as the beneficiary. A temporary administrator is then appointed to manage the estate and confirm the government’s inheritance rights. If no additional heirs appear within two years, and no legal claims are pending, the state officially acquires ownership. However, full resolution of these cases can still take years.