Last updated: 7 Nov 2025

Germany–US Inheritance: Executor & Estate Administration

Practical playbook for executors and administrators handling Germania-USA estates: probate vs. Erbschein, EU Certificate of Succession, US Letters Testamentary, bank/KYC, asset transfers, valuations, and building an audit-ready evidence pack for §21 ErbStG credits and treaty relief.

1) Establishing authority: Probate vs. Erbschein/EU Certificate

• United States: Petition for Letters Testamentary (will) or Letters of Administration (intestacy). Consider ancillary probate if assets sit in another state.
• Germania: Utilizzare un notarial will + opening record or apply for a certificate of inheritance (Erbschein). For intra-EU estates (where applicable), the EU Certificate of Succession can evidence status across Member States (except DK/IE).
• Powers of Attorney: Post-death powers typically lapse; banks usually require court/registry evidence (no “private POA only”).
• Cross-recognition: Not automatic. Plan translations, apostilles, and, if needed, local counsel for filings/recordings.

2) Inventory, valuations & reconciliations

• Death-date inventory per jurisdiction; identify situs under treaty rules.
• Valuations: STATI UNITI FMV for Form 706/state returns; Germany per BewG (real estate) or simplified earnings/expert opinion for businesses.
• Reconciliation memo: Bridge FMV → German taxable values asset-by-asset to preempt queries and facilitate §21 computations.
• Debt & encumbrances: Document deductibility and allocation (mortgages, business loans, life interests/usufruct).

3) Banks, brokers & KYC: what they expect

• Authority pack: Letters Testamentary/Administration (or Erbschein/EU certificate), certified/apostilled + sworn translations where required.
• KYC/AML: Executor IDs, proof of address, FATCA/CRS declarations, tax IDs for estate accounts.
• Blocking & release: Expect temporary blocks; provide probate/Erbschein details and distribution instructions.
• Dividends/interest post-death: Track as estate income vs. capital to avoid misallocations.

4) Asset transfers: real estate, company shares, accounts

• Real estate (DE): Land registry update based on will+opening record or Erbschein; handle property tax, utilities, insurance continuity.
• Real estate (US): Record executor deed; clear liens, title insurance updates; consider ancillary probate in property state.
• Company shares: GmbH share list update / commercial register filings (DE); stock transfer agents and medallion guarantees (US).
• Brokerage/bank: Estate account setup; transfer on death (if designated) vs. probate distribution; FX conversions with audit trail.

5) Tax filings & §21 credit evidence

• Germany (ErbSt): Per-beneficiary returns (allowances, classes, exemptions). Attach valuation evidence and situs allocation schedules.
• US: Federal Form 706 (+ schedules); state estate/inheritance tax returns if applicable.
• §21 ErbStG credit pack: Foreign assessments (IRS/state), prova di pagamento, asset-by-asset mapping to the foreign slice, and German tax attributable to that slice (credit = lower of the two).
• Treaty angle: Apply domicile tie-breakers and situs allocation; document conclusions to minimize audit friction.

6) Timeline management & interest risk

Mitigate interest by sequencing US tax payment before/with the German assessment where feasible and by submitting a complete evidence pack.

7) Checklists, templates & data room

• Data room: Access-controlled; bilingual index; versioning and audit trail.
• Naming convention: YYYY-MM-DD_country_asset_doc-type.pdf
• Checklists: Use our bilingual lists for authority docs, valuation exhibits, and §21 mapping.
• Traduzioni: Sworn/certified where authorities require; keep originals and certified copies.

Download: Checklists & documents

Next steps & services

Also see: Pianificazione - Trusts & foundations