German-British Probate and Inheritance Lawyers

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At Schlun & Elseven Rechtsanwälte, our German inheritance law specialists are here to support clients on all matters concerning German-British inheritance cases.

Such cases include those involving UK citizens who have German assets and need to consider them during estate planning, UK citizens with an interest in German business assets, whether for estate planning or inheriting reasons, UK citizens who have inherited German property and UK citizens who are executors of estates that include property (or properties) in Germany.

If you require the advice of our German inheritance lawyers, please do not hesitate to contact our team directly.

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If you seek to design your will or create an inheritance contract, your estate is located in Germany and the UK, or your heir is in the UK. At Schlun & Elseven, our team is ready to advise you regarding estate planning and the options available to you.

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Inheritance Law Services
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Services for heirs who are UK citizens or heirs based in the UK who have inherited property or assets in Germany, and for potential heirs who require further information regarding inheriting in Germany.

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Difficulties involved with German-British Inheritance Cases: Determining Jurisdiction

As it is no longer part of the European Union and never signed up for the regulation in the first place, the UK is a “third country” regarding the European Succession Regulation.

According to the EU Regulation of Successions, in succession cases involving signatory states the applicable jurisdiction to cross-border successions is determined by the last “habitual residence” of the deceased. This applies so long as the deceased did not determine the applicable legislation through a choice of law. However, in German-British successions determining the applicable jurisdiction carries arguably greater importance and can be more complex. Determining this can be based on facts of the case, such as the nationality of the deceased or where they are based.

When we examine the international succession law of England and Wales, for example, property inheritance matters follow the inheritance law of the property location, whereas other factors play a more significant role with moveable assets. It should also be noted that inheritance law in Scotland can differ from that in the rest of the UK in several aspects. At Schlun & Elseven Rechtsanwälte, our lawyers will outline how these factors apply to the individual case.

Under English law, some significant differences exist compared to German law, such as the non-existence of the principle of universal succession. Under English law, the estate is similar to its own legal entity and has a legal representative (either an executor nominated by the deceased or an administrator who is a court-appointed executor) in the process. As outlined below, this situation can have a significant impact on heirs.

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Estate Planning and Our Expertise for Testators

At Schlun & Elseven Rechtsanwälte, we provide clear legal advice to UK citizens relating to estate planning involving German assets. Whether they live in Germany or have property or personal/business assets in Germany, it is essential to prepare for all situations. Delaying or neglecting such steps can leave open the possibility of intestate succession which becomes even more complex in international cases.

Our inheritance and probate law team examine and review existing wills to ensure that they consider elements of German law. We advise testators closely regarding actions they can take regarding creating trusts and other mechanisms to avoid or minimise German estate, inheritance or gift tax liabilities. Furthermore, we will guide you in matters relating to the compulsory share (“der Pflichtteil”) as provided under German law.

Furthermore, for private assets, we also outline the possibilities available under the inheritance contract (“der Erbvertrag”) and whether such an arrangement should be considered in your case. The inheritance contract is a binding agreement and a means of disposition of property and assets following the passing of the testator. It is less flexible and subject to stronger legal requirements than a standard will but can guarantee that specific actions will occur in the event of the testator’s passing. Changing or cancelling an inheritance contract involves coming to an agreement with the other parties involved in the agreement and it must be officially notarised.

Should you possess business assets in Germany, our full-service model will be of significant benefit to you. Our team can assess your case from a corporate and inheritance law perspective. With your assistance, we will carefully analyse your situation and determine methods of transferring shares, prepare succession regulations in partnership agreements, and generally ensure that the company will be in the right hands in the event of succession. Our corporate law team will ensure that you are fully aware of the legal outcomes of all decisions made.

In the area of gifts and “anticipated succession” involving future heirs, our lawyers will outline what actions you can take and what such steps will involve for assets based in Germany and those based in the UK. Anticipated succession involves transferring assets to an heir during their lifetime, which can be attractive for tax reasons. Such gifts can also lead to fewer complications in matters relating to the compulsory share and the community of heirs (“die Erbengemeinschaft”) that may otherwise impact your heirs.

Intestate Succession

Intestate succession under German law is legislated under § 1931 BGB, and it applies where no will has been created; the will does not fulfil German law requirements or where assets are excluded from the will. Intestate succession ensures that there is less control over who shall eventually inherit the property and assets involved.

Under intestate succession in Germany, the deceased’s spouse receives their share of the estate first. Their claim is determined by the surviving relatives of the deceased. If they have surviving children (or grandchildren, should the children be predeceased), the spouse will receive 25% of the estate. If the deceased has surviving parents, siblings or grandparents, the spouse gets 50% of the estate. However, if any of the named relatives do not survive the deceased, the spouse will receive 100% of the deceased’s legacy.

Family claims are determined by their “class” within the inheritance order. Any beneficiaries of a higher class exclude any potential beneficiary of the next class (§ 1930 BGB). Therefore, if a successor is in Class one, they receive the inheritance instead of sharing it with those in classes two and three.

Under English and Welsh law, the deceased’s successors are their spouse, the children, and further relatives and similarly to German law they are placed in different groups. Generally, the deceased’s children and spouse will inherit. In contrast, other family members’ rights will be based on their placement in the group, and which other family members are in the group. It is similar to German law, but the figures involved relating to inheritance taxes are usually much different. Therefore, consulting with legal professionals is always advisable.

Our Services for Heirs:

Inheriting in Germany as a UK Citizen: Our Expertise for Heirs

When inheriting, heirs need to be aware of significant differences between German and UK inheritance law. These differences have an enormous effect on how the inheritance process will be carried out. In such cases, it is, therefore, vital to ensure that you are working with experienced legal professionals.

Under German law, there is the “principle of universal succession “, whereas, in the UK, the rule is that a personal representative takes possession of the estate. This personal representative will eventually ensure that the assets reach the beneficiaries. Under German law, the heir immediately acquires the assets and liabilities; however, there is a limited window in which the heir can refuse an inheritance.

The window for refusing an inheritance is only six weeks; during this time, the heir is strongly advised to consult with experienced professionals. Such a refusal is often advisable in cases involving extensive liabilities or properties of little value to the heir, whether due to the property’s location or state. However, heirs should not make such a decision without careful consideration, close examination of all documents relating to the inheritance, and advice from professionals.

It is essential to be aware that a German heir requires an “Erbschein “in most cases (a “certificate of inheritance”), as such a document is essential when dealing with different banks, financial institutions, insurance companies and other bodies.

In Germany, those who inherit as a group need to be aware of the community of heirs, the “Erbengemeinschaft”. This construction is provided under § 2038 BGB and outlines that the heirs own the property together. Under the community of heirs system, the estate automatically becomes their joint property under § 2032 para. 1 BGB and must be administered jointly by all heirs.

Such a step can often cause conflicts amongst those within “the community”. Depending on the number of heirs, it is usually better to leave this group, whether by buying out the others or selling the stake if possible. However, it is advisable to consult with professional legal advice before taking drastic steps, as each case needs to be examined closely for its individual attributes. The “community of heirs” can be particularly challenging for heirs based abroad, such as if you are inheriting in Germany but are based in the UK.

Similarly, testators can avoid such a community of heirs from arising by consulting with our legal professionals, as they can examine the situation from different angles. Stating clearly how the property or assets should be divided by the heirs is one way to avoid potential quarrels, as is naming specific heirs to particular properties and assets.