How German inheritance law differs from the United States

If you have inherited, or expect to inherit, assets in Germany, a few structural differences from US law tend to catch people off guard. Here are the big ones.

No probate court running the estate. In the US, an estate is typically administered through probate, often by an executor under court supervision. Germany works on universal succession: at the moment of death, the heirs step directly into the deceased's legal position — assets and debts alike. There is usually no court-appointed administrator and no probate process in the American sense. What you often need instead is a certificate of inheritance (Erbschein) to prove your status to banks and the land registry.

Forced heirship — you cannot fully disinherit close family. US testators enjoy broad freedom to leave their estate as they wish. German law protects close relatives through the Pflichtteil (compulsory share): children, a spouse and sometimes parents are entitled to a minimum portion of the estate's value even if the will leaves them out. It is a monetary claim rather than a share of specific assets — but it is real, and it constrains planning.

The community of heirs. Where there is more than one heir, German law places them in an Erbengemeinschaft — a community that owns the estate jointly and must, in principle, act unanimously until the estate is divided. For families spread across countries this is a frequent source of deadlock, and resolving it is much of the practical work.

Inheritance tax is charged to the heir. German inheritance tax is levied on each beneficiary's share, with tax-free allowances that depend on how closely related you were to the deceased — a spouse and children have high allowances; distant relatives and unrelated beneficiaries far lower ones. The mechanics, rates and allowances differ substantially from the US federal estate tax.

Which country's law even applies? Under the EU Succession Regulation, succession is generally governed by the law of the deceased's last habitual residence — but a person can choose the law of their nationality in their will. For anyone with ties to both Germany and the US, getting this choice right, early, avoids a great deal of later conflict.

The upshot: German succession is faster in some ways (no probate) and more constrained in others (forced heirship, joint heirs). If German assets are in the picture, it pays to understand which rules apply before decisions are made.