Inheritance rights and obligations in another member state

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

By will or contract of inheritance other heirs can be designated. The spouse and close relatives are nevertheless entitled to a compulsory portion .

Upon the death of the testator, all his or her assets and debts are transferred to the deceased in accordance with § 1922 BGB to the heir. The heir or heiress can transfer the inheritance within 6 weeks of becoming aware of the inheritance in accordance with Sections 1942 et seq. BGB to waive the inheritance.

Taxing the inheritance

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

As taxable acquisition is the enrichment of the acquirer. This is the value of the acquired assets, insofar as they are not tax-free, less the estate liabilities incurred by the deceased and less the tax-free amounts.

The valuation of all types of assets is uniformly based on the fair market value in all cases.

Inheritance tax is calculated according to the value of the taxable acquisition and the tax rate based on the classification of the acquirer into tax classes calculated:

• Tax class I Spouses and registered partners, children, including legitimate and illegitimate children, adopted children, stepchildren, grandchildren and other descendants as well as parents and grandparents; tax rate 7% to 30%.
• Tax class II Siblings, half-siblings, siblings' children, step-parents, parents-in-law, children-in-law and divorced spouses; tax rate 15% to 43%.
• Tax class III All other acquirers; tax rate 30% to 50%

The personal allowances are:

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

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

The Succession Regulation also regulates the recognition and enforcement of decisions and the acceptance and enforcement of authentic instruments in matters of succession as well as the possibility of obtaining a European Certificate of Succession to apply for a European Certificate of Succession.

• § 1922 BGB