Germany has a unique set of inheritance laws that can be complex for foreigners to navigate. Here are some key aspects to be aware of:
Forced Heirship Rules
Germany has strict forced heirship rules that give certain close family members a legal entitlement to a portion of the deceased’s estate, regardless of the will’s provisions. These include:
- Children and spouses have a right to at least 50% of their statutory inheritance share.
- Parents have a right to at least 25% of their statutory share if there are no surviving children.[1]
Intestate Succession
If the deceased did not leave a valid will, German intestate succession rules determine how the estate is distributed based on the relationship to the deceased, with spouses and children taking priority.[1][2]
Certificate of Inheritance (Erbschein)
To access assets in Germany, heirs often need to obtain a Certificate of Inheritance from a German probate court. This officially recognizes the heirs and their entitlements.[1][3] The process involves:
- Determining legal heirs
- Locating and valuing assets
- Applying for the certificate
- Paying inheritance taxes
Inheritance Taxes
Germany has its own inheritance tax laws. The heir, not the estate, is liable for taxes based on the value of inherited assets and their relationship to the deceased. Tax treaties may provide credits for taxes paid in Germany.[1][3]
Wills and Forced Heirship
While Germans can draft wills, the forced heirship rules still apply, limiting freedom of testation. Foreign trusts are usually not recognized, which can cause issues with the Certificate of Inheritance application.[1]
Legal Assistance
Given the complexities, especially for international cases, it is highly advisable for foreign heirs to seek assistance from lawyers experienced in German inheritance law, such as Urban Thier & Federer.[1][4] They can guide you through:
- Navigating German legal requirements
- Obtaining necessary documentation
- Representing your interests as an heir
- Ensuring a smooth and legally compliant process
Inheriting assets in Germany as a foreigner requires adhering to the country’s unique inheritance laws and regulations. With proper legal guidance, foreign heirs can efficiently navigate this intricate process.[1][4]
Citations:
[1] https://www.urbanthier.com/blog/2023/09/inheriting-in-germany-as-a-foreigner-a-guide-to-the-unique-process/
[2] https://www.buckles-law.co.uk/blog/germany/ive-inherited-a-german-estate-what-next/
[3] https://uk.diplo.de/uk-en/inheritance-and-succession-matters/2451134
[4] https://www.iamexpat.de/expat-info/german-expat-news/guide-inheritance-and-probate-germany
[5] https://dublin.diplo.de/ie-en/-/2610930