Inheritance Planning in Germany: Navigating Forced Heirship and Tax Rules

In Germany, you cannot completely disinherit a child, even with an explicit will. Your child has a legal right to claim the Pflichtteil (forced share), which equals half of what they would have inherited under intestacy laws. ${jurName} advises that this is a cash claim against the estate, not a claim to specific assets, but it must be paid before other heirs receive their shares. Understanding this right is essential when planning your will to avoid family disputes and unexpected estate obligations.

Germany's inheritance tax allowances for gifts reset every 10 years, meaning you can give your children EUR 400,000 each tax-free, and then give another EUR 400,000 each after 10 years have passed. ${jurName} recommends using this 10-year renewal strategically: a parent with substantial assets can gift EUR 400,000 to each child now, and EUR 400,000 again in 2034, dramatically reducing the eventual inheritance tax burden. This multi-decade giving strategy is one of the most powerful tools in German estate planning and should be documented carefully.

A Berliner Testament (Berlin will) is a popular joint will used by married couples in which each spouse leaves all assets to the surviving spouse first, and then both agree that the children inherit everything only after both parents have died. ${jurName} notes this arrangement provides security for the surviving spouse but delays children's inheritance and can create tax inefficiencies if the first spouse dies with substantial assets. While emotionally appealing, it should be reviewed carefully with a tax advisor, as alternatives like staggered inheritance or lifetime gifts may result in lower overall tax burden for your family.

German probate (Nachlassverfahren) typically takes 6 to 12 months, depending on estate complexity, the number of heirs, and whether there are disputes over the Pflichtteil or will validity. ${jurName} advises that simpler estates with a clear will and cooperative heirs can close within 3 to 6 months, while estates with business assets, international property, or contested forced-heirship claims may take 2 to 3 years. Filing the will with the Probate Court (Nachlassgericht) and obtaining a Certificate of Inheritance (Erbschein) is essential to transfer assets.

If you own property outside Germany, the EU Succession Regulation 650/2012 typically applies, but individual countries may have their own rules about how that property is taxed and inherited. ${jurName} strongly recommends preparing a Vorsorgevollmacht (lasting power of attorney), a Patientenverfügung (advance healthcare directive), and a notarized Testament or Erbvertrag (inheritance contract) that explicitly addresses all assets including foreign real estate, bank accounts, and business interests. You should also register your will with the Central Registry of Wills (Zentrales Testamentsregister) so it is found and executed correctly after your death.

German law allows you to name multiple executors (Testamentsvollstrecker) and to define their powers and duties in your will, including whether they work alone or jointly. ${jurName} explains that you can also name a co-executor such as a family member alongside a professional (lawyer or trust company) to balance family involvement with expert management. However, each executor named is personally liable for estate debts and taxes, so the appointment should be carefully considered and ideally discussed with candidates beforehand to ensure they understand and accept the legal and financial responsibilities.

Under German inheritance law, a married spouse receives a EUR 500,000 tax-free allowance on inheritance, while registered same-sex partners (eingetragene Lebenspartnerschaft) receive the same protection and allowance. ${jurName} notes that spouses also benefit from spousal ownership of the family home and survivor's pension rights, both of which can provide significant additional protection. However, the EUR 500,000 allowance applies only once every 10 years, so large inheritances above that threshold will be taxed at rates of 7% to 30% depending on the amount, making early lifetime planning even more valuable for couples with substantial assets.