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Basic Framework

German inheritance law is codified in the Civil Code (Bürgerliches Gesetzbuch – BGB). It determines who may inherit, how the estate is divided, and what formalities must be observed. The rules apply to assets located in Germany and, in many cases, to German residents worldwide.

Testate vs. Intestate Succession

Situation	What Happens
Testate succession (a valid will or inheritance contract)	The deceased can allocate assets according to their wishes, subject to the mandatory portion (Pflichtteil) for certain close relatives.
Intestate succession (no will)	The estate is distributed automatically according to the statutory order set out in §§ 1924‑1936 BGB.

Statutory Order of Heirs (Intestate)

1. Spouse / registered civil partner – shares the estate with descendants or ascendants, depending on the marital property regime.
2. Descendants – children, grandchildren, great‑grandchildren (in equal shares).
3. Parents and grandparents – inherit only if there are no descendants.
4. Siblings, nieces, nephews – inherit if there are no closer relatives.
5. More distant relatives – only in the absence of all the above.

If no relatives can be found, the estate falls to the state (the Federal Republic of Germany).

Mandatory Portion (Pflichtteil)

• Reserved for spouse, children, and, in some cases, parents.
• Equals half of the statutory share the heir would have received under intestate succession.
• The Pflichtteil is payable in cash and cannot be waived by the testator, though it can be reduced in limited circumstances (e.g., serious misconduct against the deceased).

Formal Requirements for a Will

• Handwritten (holographic) will: entirely written, dated, and signed by the testator.
• Notarial will: executed before a notary, offering greater certainty and easier probate.
• International wills: may be recognized under the EU Succession Regulation (EU) No 650/2012 if the deceased had a habitual residence in an EU member state.

Taxation

Inheritance is subject to Erbschaftssteuer. Rates depend on:

1. Relationship class – three classes (I: spouses/children, II: parents/siblings, III: all others).
2. Value of the inherited portion – progressive rates from 7 % to 50 %.
3. Exemptions – spouses receive a €500,000 exemption; children €400,000 each (as of the latest legislation).

Tax must be declared to the tax office (Finanzamt) within three months of estate opening.

International Considerations

• EU Succession Regulation: determines the applicable law based on the deceased’s habitual residence. If the deceased was habitually resident in Germany, German law generally applies, even for foreign‑situated assets.
• Treaties: Germany has inheritance treaties with many countries that may affect jurisdiction and tax treatment.

Practical Steps After a Death

1. Locate the will (if any) and verify its validity.
2. Apply for an inheritance certificate (Erbschein) from the local probate court (Nachlassgericht).
3. Notify banks, insurers, and other institutions of the death and provide the Erbschein.
4. Prepare an inventory of assets and liabilities to calculate the net estate.
5. File the inheritance tax return within the statutory deadline.

When to Seek Professional Help

• The estate includes foreign assets or the deceased had multiple residences.
• There are disputes among heirs or challenges to the will’s validity.
• Complex tax issues arise, such as business holdings or large real‑estate portfolios.

Because each case can involve nuanced factual and legal questions, consult a licensed German attorney or a notary for personalized guidance.

Useful References

• German Civil Code (BGB) – §§ 1922‑1936 (statutory succession) and §§ 1937‑1941 (mandatory portion). Available at the official German law portal: Gesetze im Internet – BGB.
• Federal Ministry of Justice (BMJ) – information on inheritance law and procedural steps: BMJ – Erbrecht.