What Heirs Need to Know: Navigating Inheritance Laws in Germany -

Inheritance is a topic that many people avoid until it becomes unavoidable. However, understanding the rules of inheritance in Germany is essential to avoid legal pitfalls, family conflicts, and financial disadvantages. Whether you're planning your estate or expect to inherit from a loved one, it’s crucial to be informed about the legal framework surrounding succession in Germany.

This article explains the key principles of inheritance law in Germany, who inherits under which circumstances, how wills and testaments work, and what tax implications need to be considered. Whether you're a resident, an expat, or someone with family ties to Germany, understanding the country’s inheritance rules is essential to ensure legal clarity and avoid unwanted surprises. This article provides an overview of the procedures involved in inheriting properly under German law.

Everything important at a glance:

• In Germany, inheritance law regulates exactly who inherits in the event of death. Without a will, the statutory order of succession applies: spouses and children are first in line. If there are no children, parents, siblings or other relatives inherit.
• Important: Close relatives such as children or spouses are always entitled to a compulsory portion - even if they are skipped in the will.

• A will (handwritten or notarized) creates clarity and prevents disputes. In international cases, EU inheritance law applies: you can choose whether German or your own national law should apply.

• Inheritance tax is payable depending on the degree of relationship and the value of the inheritance. Spouses and children have high tax-free allowances, distant relatives do not.

1. Overview of German Inheritance Law (Erbrecht)

Inheritance law in Germany is primarily regulated by the German Civil Code (Bürgerliches Gesetzbuch – BGB). The law distinguishes between two basic types of succession:

• Intestate succession (gesetzliche Erbfolge): when the deceased has not made a will or other testamentary disposition.

• Testate succession (gewillkürte Erbfolge): when the deceased has left a will or contract of inheritance.

2. Who Inherits Under German Law?

Intestate Succession

If the deceased did not leave a will, the law determines the heirs according to a strict order of relatives.

The order is as follows:

1. Descendants (children, grandchildren)
2. Parents and their descendants (siblings, nieces/nephews)
3. Grandparents and their descendants (uncles, aunts, cousins)
4. Great-grandparents and their descendants

Spouses and registered partners have a special status and always inherit alongside relatives, but they do not replace blood relatives.

Example:

• If a person dies leaving a spouse and two children, the spouse receives 1/4 of the estate (plus another 1/4 as marital property share in community of accrued gains), and the children share the rest equally.

• If there are no children, but parents or siblings are alive, the spouse’s share increases.

The specific share depends on:

• The marital property regime (e.g., community of accrued gains, separation of property, etc.)
• The presence and class of other heirs

3. Statutory Inheritance vs. a Will in Germany

If no valid will or inheritance contract exists, the estate is distributed according to Germany’s statutory succession laws. These rules are based on family relationships and follow a strict hierarchy (see above under 2.).

However, a will takes precedence over statutory inheritance. A will allows an individual to decide freely how their estate should be divided. It overrides statutory succession and can include:

• Non-relatives
• Charities
• Unequal shares among children
• Exclusion of specific heirs (though close relatives may still have a claim to a mandatory share, or Pflichtteil)

Wills must follow legal requirements to be valid—usually written, signed, and dated by hand. Alternatively, a notarial will can be created with legal guidance.

4. Wills and Testaments in Germany

There are different types of wills:

Types of Wills:

1. Holographic Will (Eigenhändiges Testament): Must be handwritten, signed, and dated by the testator, no notary required
2. Public Will (Notarielles Testament): Declared in front of a notary, Legally secure and stored by the local probate court
3. Joint Will (Gemeinschaftliches Testament): Typically used by married couples or registered partners, Often includes a “Berlin Will” (Berliner Testament), in which spouses name each other as sole heirs, and their children inherit after both have passed
4. Contract of Inheritance (Erbvertrag): Binding agreement between two parties, usually notarized, Useful for complex family or business structures

Important Notes:

• Wills can be contested in court if not clearly written or if legal formalities are not observed.
• Inheritance contracts are harder to revoke than wills.

5. The Compulsory Portion

In Germany, certain close relatives cannot be completely disinherited. This is known as the "Pflichtteil" or compulsory portion.

Eligible for the compulsory portion are:

• Children
• Spouse
• Parents (if no children exist)

They are entitled to half of the legal share they would have received under intestate succession, payable in cash (not property or objects). The Pflichtteil claim must be made within 3 years of learning about the inheritance.

6. When Does Inheritance Tax Apply?

In Germany, inheritance tax is triggered when someone receives an inheritance due to the death of another person.

The recipient of the inheritance (not the giver or the estate) is responsible for paying the tax. The tax liability depends on several factors:

• The relationship between the giver/deceased and the recipient
• The value of the assets transferred
• Whether the recipient is a resident of Germany

Even if the deceased or donor lived abroad, German tax may still apply if the recipient lives in Germany or if German assets (like real estate) are involved.

Germany offers generous tax-free allowances depending on the closeness of the relationship:

Tax Classes and Rates

Germany uses three tax classes, based on the closeness of the relationship:

Class I: Spouses, children, grandchildren

Class II: Siblings, nieces/nephews, in-laws

Class III: All others (e.g. friends, non-relatives)

The tax rates range from 7% to 50%, depending on the class and value of the inheritance/gift. Example cases for calculating the specific inheritance tax can be found here.

Conclusion

German inheritance law offers a robust framework, but it's filled with legal nuances that can significantly affect how and what heirs receive. Proper planning, a clear understanding of intestate and testate succession, and attention to tax implications are vital to avoid unpleasant surprises. For a brief English summary you can visit the website of the US Embassy or the website of the Embassy of the United Kingdom).

Whether you’re a resident German, an expat, or someone inheriting from a German estate, being informed and taking proactive steps ensures that your inheritance—or your legacy—transfers smoothly and fairly.

Top 10 Tips to Keep in Mind When Inheriting in Germany

1. Understand the Legal Succession Rules

If there’s no will or inheritance contract, German intestate succession laws apply. These prioritize spouses and close relatives in a fixed order of inheritance.

2. Check for a Valid Will or Inheritance Contract

A handwritten will (signed and dated) or a notarized inheritance contract can override legal succession. Ensure it's legally valid under German law.

3. Inheritance Tax (Erbschaftsteuer) Applies

Germany levies inheritance tax based on the relationship to the deceased and the value of the inheritance. Spouses and children have higher tax-free allowances than distant relatives or unrelated heirs.

4. Spouses Don’t Automatically Inherit Everything

Without a will, a surviving spouse inherits only a portion, often in combination with children or parents of the deceased. Marital property regime (e.g., community of gains) also influences shares.

5. You Can Reject an Inheritance

Inheriting also means inheriting debt. You have six weeks (or six months if living abroad) to formally decline an inheritance at a probate court.

6. Probate Certificate (Erbschein) May Be Required

To prove you are the rightful heir and handle the estate (like accessing bank accounts or selling property), you may need to obtain an Erbschein from the probate court.

7. Joint Heirs Form a Community of Heirs (Erbengemeinschaft)

If multiple people inherit, they must act jointly to manage and divide the estate. This can cause delays and legal disputes, so cooperation or legal advice is crucial.

8. Real Estate Inheritance Requires Special Attention

Property inheritance must be updated in the land register. Heirs may face real estate transfer taxes or need to decide whether to sell, rent, or keep the property.

9. Cross-Border Inheritance Rules Can Apply

If the deceased or heirs are from different countries, EU Regulation (Brussels IV) may apply. In most cases, the law of the deceased’s last habitual residence governs the inheritance.

10. Seek Legal and Tax Advice Early

Inheritance matters can be complex, especially with blended families, foreign assets, or large estates. Consulting a notary or tax advisor ensures you're making informed decisions and minimizing risks.