Inheritance Guide
Inheritance Planning in Germany: Navigating Forced Heirship and Tax Rules
Germany combines strict forced heirship rules with a generous tax-free allowance system that rewards close family ties. What surprises many people is that even if you write a will explicitly disinheriting a child, they can still claim their Pflichtteil, a compulsory share equal to half of what they would have received under intestacy. The good news is that spouses and children get significant tax-free allowances, and smart lifetime giving can dramatically reduce the tax burden.
Inheritance Tax
Germany taxes inheritances at rates from 7% to 30% for close family (Class I), 15% to 43% for extended family (Class II), and 30% to 50% for unrelated persons (Class III). Spouses receive a EUR 500,000 exemption, children EUR 400,000, and grandchildren EUR 200,000. These allowances reset every 10 years for gift planning.
Forced Heirship
Germany has forced heirship through the Pflichtteil system. Even if disinherited by will, children, spouses, and in some cases parents are entitled to a compulsory share equal to half the value of their statutory inheritance share. This is a monetary claim against the estate, not a right to specific assets.
Key facts about inheritance in Germany
The details that matter most when planning for your family's future in Germany.
- 1
Forced heirship (Pflichtteil) guarantees disinherited children and spouses half of their intestate share as a cash claim
- 2
Inheritance tax ranges from 7% to 50% depending on the relationship and amount
- 3
Spouses receive a EUR 500,000 tax-free allowance; children get EUR 400,000 each
- 4
Germany applies EU Succession Regulation 650/2012
- 5
Tax-free allowances renew every 10 years, making lifetime gifts a key planning tool
What makes Germany different
These are the considerations unique to Germany that most families don't discover until they need to.
The Berliner Testament (Berlin will) is a popular joint will for married couples where spouses inherit everything first and children inherit after both pass away
Business succession relief can exempt up to 85% or even 100% of qualifying business assets from inheritance tax
Real estate is valued at assessed value (Grundbesitzwert) which can be below market value, offering tax advantages
The 10-year gift renewal rule means families often plan multi-decade giving strategies to maximize allowances
Documents commonly needed in Germany
The documents families typically need when dealing with inheritance matters in Germany.
Testament (will, either handwritten or notarized)
Erbvertrag (inheritance contract, binding and notarized)
Vorsorgevollmacht (lasting power of attorney)
Patientenverfugung (advance healthcare directive)
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Important disclaimer
This content is for general informational purposes only and does not constitute legal, tax, or financial advice. It was created with the assistance of AI and may contain inaccuracies. Inheritance laws change frequently — always consult a qualified attorney or tax advisor in Germany before making decisions about inheritance or estate planning.