Yes—citizenship alone is not decisive in Germany. Liability depends on residence/habitual residence of the decedent or heir and/or a German situs of assets (e.g., German real estate or business interests). A U.S. citizen can be fully taxable in Germany if they (or the beneficiary) are German-resident, or partly taxable if only German-situs assets are involved.

Unlimited liability typically taxes the heir’s acquisition of the decedent’s worldwide assets when either party is German-resident. Limited liability taxes only German-situs assets when both are non-resident. Treaty relief may reduce double taxation (see below).

The U.S. taxes the decedent’s estate (federal estate tax), while Germany taxes the beneficiary’s acquisition. The U.S.–Germany Estate & Gift Tax Treaty coordinates taxing rights and allows foreign tax credits to mitigate double taxation. Some U.S. states may also impose estate/inheritance taxes—planning must consider all layers.

The treaty defines which country may tax which assets (e.g., real estate, business property, tangible property) and grants credits to the country of residence/domicile for tax paid to the other. It also contains tie-breaker rules for conflicts and special provisions for property like shares, debt, and insurance—careful application is essential.

German real estate and German business assets (e.g., shares in a German partnership or a significant German permanent establishment). Bank accounts alone are often not decisive; classification depends on specific rules and the treaty. A detailed asset-by-asset review is required.

Yes. If subject to German inheritance tax, personal allowances and tax classes apply based on the heir’s relationship to the decedent (e.g., spouse, child, unrelated). Allowances are applied per recipient. Exact thresholds and brackets change over time and must be checked for the year of death.

Germany is a civil law jurisdiction and does not natively recognize common-law trusts in the same way. A revocable living trust is often viewed as the settlor’s own assets for German purposes, and distributions may trigger inheritance/gift tax. Structuring with German recognition (or alternatives, e.g., foundations) should be evaluated early.

For U.S. estate tax, the unlimited marital deduction generally requires a U.S.-citizen spouse; otherwise a QDOT may be needed. Germany applies a different system (allowances and rates by class) and does not have the same U.S.-style marital deduction. Cross-border couples must coordinate both systems to avoid surprises.

The U.S. typically grants a basis step-up at death for income tax. Germany’s post-inheritance income tax treatment (on later sale or distributions) follows different rules. Cross-border heirs should model both systems to avoid unexpected gains or missed loss opportunities.

Germany: heirs typically file an inheritance tax return with the competent tax office; deadlines often run from the tax office’s notice/request. U.S.: the estate may need a Form 706 (federal estate tax return). A U.S. recipient of a large foreign bequest (e.g., from a German nonresident) may need to file Form 3520 for information reporting.

Often yes—especially for German banks and the land registry. Even with a U.S. will or grant, institutions may ask for an Erbschein. Expect certified translations and apostilles. Some notarial German wills can dispense with the Erbschein, but acceptance varies.

Typical tools include lifetime gifts (mind German 10-year cycles and U.S. gift tax rules), business property relief in Germany (subject to strict tests), charitable bequests (ensure recognition in the taxing state), and foundations or other vehicles to anchor governance. Structures must respect both legal systems to be effective.

U.S. qualified disclaimers (to avoid gift consequences) have strict federal timing/form rules. German renunciation (Ausschlagung) has different deadlines and formalities (often weeks, not months), typically before the probate court or by notarized declaration. Coordinating both is critical in cross-border cases.

German law uses statutory valuation methods (e.g., for real estate and businesses) and specific valuation dates. Foreign currency assets are converted using prescribed FX rules. Expect requests for appraisals, statements, and transaction evidence—good documentation reduces audit risk.