Inheriting a German Bank Account: Legal Requirements and Procedure

When a German bank account holder dies, the account does not close or become automatically accessible to the next of kin. Under the principle of universal succession established in Section 1922 of the German Civil Code (BGB), the entire estate — including all bank accounts — passes to the heir or heirs at the moment of death, without any formal act of acceptance being required. The heir, therefore, becomes the legal successor to the account immediately.

What does not transfer automatically is the ability to act on that account. In most cases, a German bank will only become aware of a customer’s death when the heirs make contact. Until the heirs can demonstrate their entitlement to the bank’s satisfaction, the institution is obliged to maintain banking secrecy and will restrict access accordingly. This gap between legal succession and practical access is the central challenge for anyone inheriting a German bank account, and navigating it correctly requires an understanding of both the documentation required and the order in which steps should be taken.

The account balance forms part of the taxable estate and is assessed at its face value on the date of death for inheritance tax (Erbschaftsteuer) and for inheritance value. This has practical implications for both the distribution of the estate and any tax liability that may arise.

Where the deceased held a sole account (Einzelkonto), the account passes in full to the heir or heirs upon death. If there is a single heir, that person becomes the sole account holder and, once they have demonstrated their entitlement to the bank, may request information about the account, access the balance, and take steps to transfer or close it. Where multiple heirs exist, the account falls into the joint estate of the community of heirs (Erbengemeinschaft) and may only be disposed of collectively, as discussed further below.

Where the deceased held a joint account with another person, the position on death depends on the account type. A joint account structured as an Oderkonto — an “or” account — allows each account holder to act independently. The surviving account holder, therefore, retains the right to access and dispose of the account after the other holder’s death. It should be noted, however, that the funds held in an Oderkonto are not automatically the sole property of the surviving holder. The deceased’s share of the balance may form part of the estate, and the surviving holder may be required to compensate the heirs accordingly, unless a written agreement to the contrary was made before the account holder’s death.

A joint account structured as an Undkonto — an “and” account — requires both holders to act together. Following the death of a holder, the surviving holder cannot unilaterally dispose of the account. The consent of the deceased’s heirs will be required, and the account will remain frozen pending proof of heirship from the estate.

For most heirs, the process of accessing an inherited German bank account centers on a single document: the certificate of inheritance (der Erbschein). Issued by the German probate court (Nachlassgericht), the Erbschein formally identifies the heir or heirs and confirms the basis and extent of their entitlement. It is the document German banks most commonly require before releasing account information or funds, and obtaining it is typically the first substantive step in the inheritance process.

Once the bank has been presented with a valid Erbschein, the heir’s right to information becomes enforceable. Under Section 666 BGB in conjunction with Section 675(1) and Section 1922 BGB, the bank is obliged to provide a full account of the deceased’s finances, including details of past transactions. From that point, the heir can also exercise the power of disposition over the account — transferring balances, settling outstanding obligations, or closing the account entirely.

The Erbschein is not the only route to establishing heirship. Where the testator left a notarized will or inheritance contract (Erbvertrag) that has been formally opened by the probate court, many German banks will accept this in place of the Erbschein, since a notarized document carries a comparable degree of legal certainty. This can considerably simplify and accelerate the process, particularly for heirs based abroad who face practical difficulties in applying for the Erbschein from outside Germany.

The Erbschein is not issued automatically and must be applied for at the probate court (Nachlassgericht) at the deceased’s last place of residence in Germany, or through a notary. Supporting documentation typically includes the death certificate, identity documents, family register or birth certificate, and — where no notarized will exists — a signed affidavit confirming that no notarized will or inheritance contract is known to exist. The names and addresses of any co-heirs must also be provided. The documents required will vary depending on the specifics of the case, and seeking legal guidance before submitting an application helps ensure the correct documentation is in place from the outset.

Fees apply to the application, covering the certification of the affidavit and the issuance of the certificate, calculated on the basis of the estate’s value in accordance with the Law on Costs of Voluntary Jurisdiction for Courts and Notaries (GNotKG). Once submitted, heirs can generally expect to receive the certificate by post within a few weeks, though delays are not uncommon.

One way to avoid the Erbschein requirement entirely is to plan in advance. A testator may grant a trusted person a post-mortem power of attorney (transmortale Vollmacht) that remains valid following the granter’s death. Where such a power of attorney is in place and recognized by the bank, the authorized person can act on behalf of the estate immediately after death without waiting for the Erbschein to be issued. This can be of significant practical value in time-sensitive situations — for example, where standing orders or direct debits need to be managed, or where there are pressing financial obligations to be met from the estate. The scope and validity of post-mortem powers of attorney are worth considering as part of broader estate planning.

For heirs based outside Germany, accessing an inherited German bank account presents additional complications. Beyond the practical challenges of applying for the Erbschein from abroad, German banks are mindful of their obligations under inheritance tax law — a bank that releases funds before any applicable German inheritance tax has been settled can assume liability for that tax, and will often require confirmation from the relevant tax authority before proceeding, particularly where larger sums or cross-border complications are involved.

Within the European Union, heirs may be able to use the European Certificate of Succession (Europäisches Nachlasszeugnis) as an alternative to the Erbschein. For heirs based outside the EU — in the United States, the United Kingdom, Canada, or elsewhere — the process is more complex, and early legal advice is strongly recommended. Our international inheritance law team regularly advises heirs across these jurisdictions on the procedural and tax-related challenges that arise in cross-border German inheritance cases.

Where a person dies leaving more than one heir, a community of heirs (Erbengemeinschaft) arises automatically under Section 2032 BGB. In the context of inheriting a German bank account, this means that no single heir assumes the deceased’s position as the individual account holder. Instead, the account falls into the jointly held estate, and all decisions regarding it must, as a starting point, be made collectively.

The short answer is no, not when it comes to withdrawing or transferring funds. Section 2040 BGB establishes that a community of heirs may only dispose of estate assets jointly, which means that no individual co-heir is entitled to withdraw funds or exercise power of disposition over an inherited bank account independently, regardless of the size of their share. Any such action requires the agreement of all co-heirs, and where one withholds consent, the others’ only formal recourse is through the courts.

There is, however, an important distinction between disposition and information. Each individual co-heir retains an independent right to request account information from the bank, without requiring the consent of the other co-heirs. A co-heir who can demonstrate their status — by presenting a certificate of inheritance or equivalent documentation — may approach the bank directly for details of the account and its transaction history. Any information disclosed to one co-heir is, in effect, disclosed to the community of heirs as a whole.

Disagreements among co-heirs over how to manage or distribute an inherited German bank account are not uncommon, particularly in larger or more complex estates. Where agreement on disposition cannot be reached, the account effectively becomes inaccessible – held in limbo while the dispute continues. In very limited circumstances, an individual co-heir may be able to take emergency action without the others’ consent, but this is a narrow exception recognized by German courts and not a reliable path forward.

The more constructive route is to work toward a negotiated settlement, ideally with legal support to ensure all parties understand their rights and obligations. Our inheritance lawyers are experienced in advising communities of heirs, facilitating dispute resolution, and providing representation in court when litigation cannot be avoided.

Inheriting a German bank account has tax implications that heirs should address early in the process. Whether tax is ultimately payable depends on the total value of the inheritance and the heir’s relationship to the deceased, which governs both the applicable personal allowance and the tax rate. In certain situations — particularly for international heirs — the tax position also directly affects the heir’s ability to access and transfer the inherited funds.

German inheritance tax law provides personal allowances (Freibeträge) that reduce the taxable value of the inheritance according to the heir’s relationship to the deceased. Spouses and registered partners benefit from an allowance of €500,000, children from €400,000 per parent, and grandchildren from €200,000. More distant relatives and unrelated heirs receive a significantly lower allowance of €20,000. Where the total inheritance value — including bank account balances — falls within the applicable allowance, no inheritance tax is due.

Where the allowance is exceeded, the surplus is taxed at rates ranging from 7% to 50%, depending on the relationship category and the size of the taxable amount. Rates at the higher end apply to larger inheritances passing to more distant relatives or unrelated heirs. Further details on applicable rates and brackets are available on our inheritance tax law page.

German banks are required by law to notify the tax authorities upon becoming aware of a customer’s death, ensuring the relevant tax office is informed of the account and its balance, regardless of any action by the heirs. Beyond this notification obligation, banks take a cautious approach to releasing funds where German inheritance tax may be payable. Under Section 20(6) of the Inheritance Tax and Gift Tax Act (ErbStG), a bank that releases inherited funds before any applicable tax has been settled can itself be held liable for that tax. In practice, this means banks — particularly in cases involving substantial balances or international heirs — will often require confirmation from the tax authority before proceeding with a transfer or payout.

For heirs outside Germany seeking to transfer inherited funds abroad, a tax clearance certificate (Unbedenklichkeitsbescheinigung) is typically required before a German bank will release funds for international transfer. This certificate — issued by the German tax authorities once the required documentation has been submitted and any applicable inheritance tax paid or secured — confirms that the authorities have no objection to the release of funds. Without it, the bank is likely to withhold the balance even where heirship has already been established through the Erbschein.

Obtaining the Unbedenklichkeitsbescheinigung involves filing a German inheritance tax return and engaging directly with the relevant tax authority — a process that can be demanding for heirs unfamiliar with the German tax system. Our lawyers regularly support international clients through this process.

The taxable value of an inherited bank account is not always limited to the balance at the date of death. Under German inheritance and gift tax law, gifts made by the deceased within the ten years prior to death are added back into the estate when calculating the taxable inheritance. Where the deceased made significant transfers from bank accounts to family members or others in the years before death, those amounts may reduce the personal allowances available to heirs and increase the overall tax exposure. The value attributed to earlier gifts diminishes progressively over the ten-year period, but the potential impact remains significant in many cases. Our lawyers can advise on how lifetime gifts affect the inheritance tax calculation in individual cases.

Not every inheritance is worth accepting. Where the deceased’s estate carries significant debts or other liabilities, the account balance – however substantial it may appear in isolation – may not reflect the true financial picture. Under German inheritance law, an heir who accepts the inheritance assumes personal liability for the deceased’s debts in proportion to their share of the estate. If total liabilities exceed total assets, accepting without proper assessment can leave an heir in a worse position than before.

Where this is a concern, refusing the inheritance (Ausschlagung) may be the right course of action. Refusal is a formal act under German law: it must be declared before the competent probate court (Nachlassgericht) or notarized, and cannot be made informally or implied by conduct. It is also subject to a strict deadline — six weeks from the point at which the heir becomes aware of the inheritance, extended to six months where the heir was residing abroad or the deceased was a foreign national at the time of death. Once this deadline passes, the inheritance is deemed accepted, and refusal is no longer possible.

Given the irreversibility of this position, it is important to seek legal advice promptly if there is any reason to question whether the estate is worth accepting. Our lawyers can assist in assessing the estate’s full financial position – including any debts or liabilities associated with the deceased’s bank accounts – to support heirs in making an informed decision within the available timeframe.

Heirs are not always aware of all the bank accounts the deceased held. Where the deceased managed their financial affairs privately, kept limited records, or held accounts across multiple institutions, it may not be clear from the outset which banks need to be approached or what balances exist. This is a practical challenge that frequently arises when inheriting a German bank account and can delay estate administration if not addressed early.

Germany’s Federal Notary Chamber (Bundesnotarkammer) operates an account search service — the Kontenabruf — that allows authorized parties, including heirs who have obtained a certificate of inheritance, to submit a formal inquiry identifying bank accounts held by the deceased at German credit institutions. The inquiry is processed centrally and returns details of any registered accounts, enabling heirs to identify institutions they may not have been aware of and approach them with the appropriate proof of heirship. Access to the Kontenabruf requires prior establishment of heirship, and our lawyers can assist in initiating the search once the necessary documentation is in place.

A related issue arises where an account is known to exist but has been inactive for an extended period. German banks are required to maintain records of dormant accounts, and, if contact with the account holder is lost, the balance remains held by the bank until a valid claim is made. Heirs presenting the required proof of heirship are entitled to claim the funds in a dormant account on the same basis as any other inherited German bank account, subject to the same tax and procedural considerations. Where the institution holding a dormant account cannot be identified, the Kontenabruf service is the appropriate starting point.