Germany's Upcoming Wealth Transfer Highlights Gift and Early Inheritance Rules

Over the next decade Germany is expected to experience the largest wealth transfer in its history, as assets move to the next generation. Under German law a "gift" (Schenkung) is an irrevocable, non‑compensated transfer of wealth (§ 516 BGB). Simple cash gifts are effective without notarisation, but promises of future gifts and transfers of real estate, condominium ownership or company shares require a notarial deed (§ 518 BGB) to be valid. Early inheritance arrangements (vorweggenommene Erbfolge) combine gifting with future succession planning, allowing families to optimise tax allowances, secure clear ownership structures and avoid disputes after death. Practitioners usually recommend a written gift contract and, for sizable assets, notarised documentation to prevent form errors and future disputes.