German Inheritance Law
German inheritance law in brief
Who Inherits If There Is No Will (Intestate Succession)
Germany follows a system of “orders” of heirs. The closer relatives exclude the more remote ones.
• First order: descendants (children, grandchildren, great-grandchildren). Children inherit in equal parts; predeceased children are represented by their own descendants by way of substitution.
• Second order: parents and their descendants (the deceased’s siblings, nieces/nephews) if there are no first-order heirs.
• Third order: grandparents and their descendants (aunts/uncles, cousins) if there are no heirs of higher order.
• More remote ancestors follow only if no one above exists.
The spouse or registered civil partner always inherits alongside these orders, with the share depending on which relatives exist and on the couple’s matrimonial property regime (see next section).
Spousal Share and the Matrimonial Property Regime
Most couples in Germany live under the statutory regime of “community of accrued gains” (Zugewinngemeinschaft) unless they signed a marital agreement. Under intestacy in that regime, the surviving spouse typically receives:
• 1/2 of the estate if the deceased leaves descendants (the other 1/2 goes to the children equally),
• 3/4 if there are only second-order heirs (parents/siblings),
• the entire estate if there are no heirs of the first or second order and no grandparents.
Different regimes (separation of property or community of property) or a contractual adjustment can change these outcomes.
What You Can Regulate by Will (Testament) or Contract of Inheritance
German law allows broad testamentary freedom. Common instruments are the handwritten will (fully written, dated, and signed by the testator), a notarial will, a joint spousal will (often the “Berlin will”), and inheritance contracts (Erbvertrag) executed before a notary.
By will or contract you may:
• Appoint one or more heirs (Erben) and determine their shares.
• Make individual gifts (Vermächtnisse/legacies) of specific assets (e.g., a flat, securities, artworks) to persons who are not heirs.
• Impose conditions or instructions (Auflagen), e.g., to maintain a grave or conserve a family home.
• Create remainders or successive inheritances (Vor- und Nacherbschaft) to control what happens after the first heir’s death.
• Exclude statutory heirs or change their shares, subject to the forced-share rules.
• Appoint an executor (Testamentsvollstrecker) to administer or distribute the estate.
The Forced-Share (Pflichtteil): A Key Limitation
Certain close relatives cannot be fully cut out economically. Children (including adopted children), the spouse/registered partner, and—if there are no descendants—parents are forced-share beneficiaries.
The Pflichtteil is a cash claim against the heirs equal to one-half of the person’s intestate share. Example: If a child would receive 1/2 under intestacy but is excluded by will, the child can claim 1/4 of the estate’s net value in money from the heirs.
Beneficiaries are entitled to information and valuation to calculate their claim (including gifts made within certain look-back periods that may increase the Pflichtteil via supplement claims).
Disinheriting a forced-share beneficiary entirely is only possible in narrow statutory cases (e.g., serious crimes against the decedent); mere estrangement is generally insufficient.
“Berlin Will” (Joint Spousal Will) – Pros and Cons
Many married couples use a “Berlin will” naming the survivor as sole heir and the children as final heirs after the survivor’s death. This simplifies things for the survivor but can trigger Pflichtteil claims by the children upon the first death and may increase inheritance-tax exposure. Clauses making the will binding after the first death are common but reduce flexibility for the survivor; thoughtful carve-outs help.
When Do You Need an Executor (Testamentsvollstrecker)?
Appointing an executor is advisable when:
• There are minor or vulnerable beneficiaries, or heirs in conflict.
• The estate includes a business, complex real estate, or international assets.
• You want staged distributions over time or to enforce conditions.
• You wish to shield heirs from direct management and creditor issues in the short term.
The executor can be tasked either with mere distribution (Abwicklungstestamentsvollstreckung) or longer-term management (Dauertestamentsvollstreckung). You may set remuneration and replacement rules in the will.
Heirs’ Community (Erbengemeinschaft)
If more than one heir exists, they form an heirs’ community by law until the estate is partitioned. Decisions often require unanimity. This can cause deadlock; testators frequently reduce friction by appointing an executor, selecting a single heir with compensatory legacies, or granting powers of sale/partition in the will.
Accepting or Rejecting an Inheritance
An inheritance passes automatically at death. Heirs may reject (Ausschlagung) within strict deadlines—typically six weeks from learning of the succession (extended to six months if the decedent or the heir was abroad at the relevant time). Rejection can be sensible if the estate is over-indebted.
If an heir neither rejects nor limits liability, they can be personally liable for estate debts. Tools like estate administration, insolvency of the estate, or executor-led settlement help cap liability to estate assets if used in time.
Probate, Certificates, and Procedure
Smaller estates with a notarial will or clear bank designations may be handled informally, but institutions often require proof. Common documents are the certificate of inheritance (Erbschein) from the probate court, a notarial will with opening record, or an European Certificate of Succession for cross-border cases. Real-estate transfers require registration based on such proof.
Cross-Border Situations
Within the EU (except Denmark and Ireland), the EU Succession Regulation generally applies the law of the deceased’s last habitual residence, unless the deceased opted by will for the law of their nationality. Coordination of law, certificates, and tax is crucial for expatriates or families with assets in several countries.
Typical Planning Clauses and Tips
• Clarify who is heir vs. legatee; give fallback beneficiaries.
• Address real estate (who may live there, sale powers, buy-out rights) and business continuity.
• Balance the “Berlin will” with Pflichtteil-mitigation strategies (e.g., no-contest clauses, staged gifts, life insurance earmarked for cash claims, or carefully structured legacies).
• Consider an executor and empower them clearly; set remuneration and replacement rules.
• Keep originals safe; tell someone where the will is. Handwritten wills must be fully handwritten, dated, and signed. Notarial execution adds probative strength and can simplify probate.
Inheritance Tax (Brief Note)
Germany levies inheritance tax with generous personal allowances (e.g., higher for spouses and children) and progressive rates depending on relationship and value. Tax interacts with lifetime gifts. Tailored advice is important where real estate, businesses, or cross-border assets are involved.
Quick Checklist
• Decide who should inherit (and who should not).
• Provide cash legacies or insurance to cover potential Pflichtteil claims.
• Consider appointing an executor, especially for minors, businesses, or conflict-prone estates.
• Plan for cross-border issues and tax.
• Execute the will correctly; review after major life events.
Disclaimer
This overview summarizes typical rules of German law and common practice. Specific outcomes depend on facts (family constellation, marital regime, asset mix, debts) and current statutes and case law.
Frequently Asked Questions about German Inheritance Law:
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Which law applies to a German-related estate?
For deaths on or after 17 August 2015, the EU Succession Regulation generally applies the law of the decedent’s habitual residence to the entire succession (worldwide), unless the decedent made a valid choice of law for their nationality (e.g., “I choose German law” / “I choose U.S. law”). Taxation is not governed by this regulation.
Will a U.S. (or other foreign) will be recognized in Germany?
Often yes. Germany generally recognizes wills that comply with accepted form requirements (e.g., notarized instruments; some handwritten wills are also valid under German law). For use in Germany you typically need certified translations, an apostille/consular legalization where applicable, and—if banks/land registries require it—either the foreign grant or a German Erbschein (certificate of inheritance).
What is an Erbschein and when do I need one?
An Erbschein is a court-issued certificate proving who the heirs are and their shares. It is commonly requested by German banks and the land registry. It may be unnecessary if a notarial German will clearly identifies heirs and institutions accept it; however, many institutions still insist on the Erbschein.
How does intestate succession work in Germany?
Without a will, heirs follow statutory orders of succession: (1) descendants; (2) parents and their descendants (siblings); (3) grandparents and their descendants, etc. The spouse’s share depends on the marital property regime and co-heirs: with children, typically ¼ (often increased by another ¼ under the default marital regime, see below).
How does the marital property regime affect the spouse’s inheritance?
Under the default regime (Zugewinngemeinschaft), the surviving spouse’s intestate portion is typically increased by ¼ to compensate for accrued gains, resulting in ½ where children also inherit. Alternative regimes (Gütertrennung, Gütergemeinschaft) can lead to different results; contracts must be reviewed.
What is the German "Pflichtteil" (forced share) and who can claim it?
"Pflichtteil" protects close family from complete disinheritance. Entitled persons include the spouse/registered partner, children (and grandchildren if a child predeceased), and parents if there are no descendants. The claim is a cash claim equal to ½ of the statutory intestate share.
How is the Pflichtteil calculated, and do lifetime gifts count?
Pflichtteil is based on the net estate value. Certain lifetime gifts may be added back (Pflichtteilsergänzung) on a declining scale, generally over up to 10 years. Precise valuation and documentation are critical in disputes.
Can I exclude a forced heir or avoid the Pflichtteil?
Complete exclusion is only possible in narrow statutory cases (e.g., severe misconduct). Otherwise, consider a notarial waiver (Pflichtteilsverzicht) during lifetime—often against compensation—or structures that reduce exposure (e.g., life insurance beneficiary designations, foundations, carefully drafted marital agreements).
What is an Erbengemeinschaft and why does it cause friction?
If multiple heirs exist, they form a community of heirs that jointly owns the estate until partition. Many decisions require unanimity, which can cause deadlock. Tools include appointing an executor, using buy-out clauses, or court-managed partition if consensus fails.
How do I renounce an inheritance (Ausschlagung) and by when?
Renunciation must be declared formally before the competent German probate court (or notarized and sent) within six weeks of learning of the succession and cause—six months if the heir resides abroad or the decedent died abroad. Missing the deadline generally means acceptance by operation of law.
Is a joint spousal will (Berliner Testament) valid and what are the pitfalls?
Berliner Testament (each spouse makes the other sole heir; children heirs of the survivor) is widely used and generally valid. Beware: children can demand the forced share on the first death; later changes may be restricted by binding effect unless expressly reserved.
Do unmarried partners inherit? What about registered partners or same-sex spouses?
Unmarried partners have no automatic inheritance rights; a will is essential. Registered partners (and same-sex marriages) are treated like spouses under current law for succession purposes, subject to the applicable regime and timing.
What if minors inherit—who manages and can assets be sold?
Parents/guardians usually manage a minor’s inheritance under supervision. Certain transactions (e.g., selling real estate, business stakes) often require family court approval. Wills can appoint executors or trustees to manage until a specified age.
Which court handles German probate and how long does it take?
The Nachlassgericht (probate division of the local court) at the decedent’s last German residence is typically competent; otherwise property location or special rules may apply. Timelines vary widely—from weeks to many months—depending on complexity, disputes, and translations/apostilles.