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4 clusters · 13 sources · 30 days · First seen · Last updated

Inheritance and estate planning laws in Europe

Overview

Legal frameworks in Germany and Switzerland govern the distribution of assets through testamentary instructions and statutory succession. In Germany, the Bürgerliches Gesetzbuch (BGB) dictates that if no valid will exists, assets are distributed based on kinship orders. Specific regulations include a six-week deadline to renounce an inheritance under § 1944 BGB and the right to a compulsory portion for close relatives under § 2303 BGB. For a handwritten will to be legally valid, it must be entirely written by hand and include the testator’s name, location, and date. To mitigate disputes, legal instruments like a ‘Berliner Testament’ can be utilized.

Inheritance tax liability in Germany is determined by estate value and kinship, with significant tax-free allowances for spouses, children, and grandchildren. Recent developments involve the German Federal Constitutional Court reviewing the constitutionality of tax regulations, particularly regarding business assets. The State of Bavaria has filed a motion arguing that current nationwide rules are inequitable due to stagnant tax-free allowances since 2009.

In October 2026, the German Federal Fiscal Court (Bundesfinanzhof) issued rulings affecting business and inheritance taxation. Regarding business sales, the court addressed whether payments to managing shareholders for continued service should be classified as employment income or part of the sale price under § 17 EStG, noting that the entire value increase of a participation should be captured under that statute. Additionally, the court clarified the tax exemption for the ‘family home,’ establishing that garden and pathway areas used in conjunction with the property can be included in the tax-exempt residential area. This ruling follows concerns regarding rising real estate values and the financial burden on heirs.

Entities

Sparkasse Freiburg-Nördlicher Breisgau · Bundesverfassungsgericht · German Civil Code · Bundesfinanzhof · Zentralverband des Deutschen Handwerks

Timeline

  1. [BUSINESS] 4 sources
    Bundesfinanzhof issues rulings on business sales and inheritance tax

    The German Federal Fiscal Court has issued rulings clarifying tax classifications for business share sales and expanding the scope of inheritance tax exemptions for family homes to include garden areas.

  2. [BUSINESS] 3 sources
    Germany: Inheritance law and tax exemption guidelines

    An overview of German inheritance law and taxation, detailing statutory succession rules and tax-free allowances for various levels of kinship.

  3. [CULTURE] 2 sources
    Estate planning and inheritance laws guide asset succession

    Experts emphasize proactive estate planning, including formal wills in Germany and early property transfers in Switzerland, to prevent family disputes and manage legal succession.

  4. [POLITICS] 5 sources
    Germany: Legal principles of inheritance and statutory succession

    An overview of German inheritance law explains how statutory succession and the Civil Code (BGB) distribute estates in the absence of a will or during legal disputes over testamentary intent.

Sources

ad-hoc-news.de · anwaltspraxis-magazin.de · beobachter.ch · economag.de · fiala.de · gmbhchef.de · handwerksblatt.de · muenster-journal.de · openpr.de · portal-der-erinnerung.de · puffbohne.de · volksfreund.de · wochentlich.de

This summary has been updated 3 times: see revision history