Inheritance claims and obligations in another Member State

Here you can find more detailed information on inheritance claims and obligations in another Member State.

Inheritance claims and obligations in another Member State

According to the law succession do the spouse and relatives, i.e., persons with common parents, grandparents, or great-grandparents, inherit in accordance with §§ 1924 et seq. of the German Civil Code (BGB).

Through Will or Inheritance contract other heirs can be determined. The spouse and close relatives nevertheless have a claim to a Compulsory portion.

Upon the death of the testator, all of their assets including debts pass in accordance with Section 1922 BGB to the heir. The male or female heir can Inheritance Generally, within 6 weeks of becoming aware of the inheritance, in accordance with §§ 1942 et seq. of the German Civil Code (BGB) decline.

Paying Inheritance Tax

Whether and in what amount inheritance tax The amount to be paid depends on the value of the acquisition, such as an inheritance, legacy, compulsory portion, etc., as well as the relationship of the acquirer to the deceased.

As taxable acquisition the enrichment of the acquirer applies. This is the value of the acquired assets, insofar as they are not tax-exempt, minus the estate liabilities originating from the testator and minus the tax-free allowances.

The Valuation of all asset classes is uniformly based in all cases on the fair market value, the so-called market value.

Inheritance tax is calculated based on the value of the taxable acquisition and the applicable tax rate, depending on the classification of the recipient as Tax classes calculated:

• Tax bracket I: Spouses and registered domestic partners, children—including children born in and out of wedlock, adopted children, stepchildren, grandchildren, and other descendants—as well as parents and grandparents; Tax rate 7 % to 30 %
• Tax bracket II: Siblings, (half-siblings, nieces and nephews, stepparents, parents-in-law, children-in-law, and divorced spouses; tax rate 15 % to 43 %
• Tax bracket III: all other purchasers; tax rate 30 % to 50 %

The personal allowances are:

• €500,000 for the spouse
• €400,000 for a child as well as a grandchild who inherits in place of a deceased child
• €200,000 for grandchildren
• 100,000 € for the remaining persons in tax class I
• 20,000 € for persons in tax class II 
• 20,000 € for tax bracket III individuals

Within the EU, the European Succession Regulation (Succession Reg.) applies to deaths occurring on or after August 17, 2015. Inheritance cases dating from before August 17, 2015, are governed by Article 25 of the Introductory Act to the Civil Code (old version)—EGBGB a.F.

The ErbVO also governs the Recognition and enforcement of decisions and the acceptance and enforcement of authentic instruments in matters of succession as well as the possibility of a European Certificate of Succession to apply for.

• Glaws regarding inheritance claims and obligations in the German Civil Code (BGB)
• Inheritance and Gift Tax Act

Brochure of the Federal Ministry of Justice „Inheritance and Bequests“ 
 

Legal bases

• Laws on inheritance claims and obligations in the German Civil Code (BGB)
• Inheritance and Gift Tax Act