📜 Estate and inheritance: the basics
In brief
Under German law, the entire estate of a deceased person – assets as well as debts – passes automatically and without a separate application to the heir (§ 1922 BGB, so-called universal succession). If there is no will, statutory succession applies according to fixed orders of priority. A will or inheritance contract takes precedence over statutory succession.
Anyone passed over in a will may, as a close relative, still be able to claim a compulsory portion (Pflichtteil) (§ 2303 BGB). To prove heirship to banks or the land registry, a certificate of inheritance (Erbschein) is often, but not always, required.
Step by step
- Look for a will or inheritance contractAsk the probate court (Nachlassgericht) whether a will has been deposited, and have the Central Register of Wills (Zentrales Testamentsregister) of the Federal Chamber of Notaries checked.
- Clarify successionWithout a will, clarify statutory succession and your own share of the estate.
- Review the estateList assets and debts in full – bank statements, contracts, outstanding invoices and reminders.
- Decide on acceptance or disclaimingIf the estate is overindebted, consider disclaiming the inheritance within the deadline (see Disclaiming an inheritance and its deadlines).
- Apply for a certificate of inheritance if neededApply to the probate court if a bank or the land registry requires formal proof.
- Check inheritance taxCheck whether the value of the estate exceeds the personal tax-free allowances and whether a notification to the tax office is necessary.
Deadlines
- Whoever inherits also inherits debts – review the estate before you accept it without comment or leave it untouched.
- Certain conduct (e.g. clearing out the home or selling items from the estate) can count as tacit acceptance of the inheritance and make a later disclaimer impossible.
- A certificate of inheritance incurs fees depending on the value of the estate – with a notarial will and an opening record, banks often accept this proof alone.
- Compulsory portion claims arise irrespective of the will, but must be actively asserted against the heirs – they are not paid out automatically.
In depth · legal basis, figures and practice – for advisers and professionals
Statutory succession in brief
Without a will, the descendants of the deceased person inherit first (1st order, § 1924 BGB). If there are none, parents and their descendants inherit (2nd order), then grandparents and their descendants (3rd order) and so on. Spouses and registered civil partners also inherit under § 1931 BGB; their share depends on the marital property regime – under the community of accrued gains (Zugewinngemeinschaft), as a rule one quarter plus a flat-rate equalisation of accrued gains of a further quarter.
Compulsory portion (§ 2303 BGB)
Descendants, the spouse/civil partner and – if there are no descendants – also the parents of the deceased person are entitled to a compulsory portion if they have been excluded from succession by a disposition upon death. The compulsory portion is half of the statutory share and is purely a monetary claim against the heirs, not a share of the estate itself.
Inheritance tax allowances (§ 16 ErbStG)
A personal allowance of €500,000 applies to spouses and registered civil partners, €400,000 per parent to each child, and €200,000 to grandchildren; in the least favourable tax class III (including more distant or unrelated persons) the allowance is €20,000. Inheritance tax is only due on the amount exceeding the respective allowance.
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