In inheritance law, the term “estate planning” is used when a future testator makes arrangements during their lifetime for the event that they die. This type of provision makes it much easier for the surviving dependents to handle the estate and to divide and use the inheritance according to the will of the testator. Unpleasant family disputes and nerve-racking court proceedings, which often last several years, can thus be prevented and taking leave of the deceased made easier.

However, succession planning and creating advance directives also means clarifying key issues relating to old age, illness and frailty. With the help of a precautionary power of attorney or bank mandate, a living will and an advance directive, you can decide for yourself what should happen in the event of illness or need for care. Those who take care of their provisions at an early stage can spend the rest of their lives carefree in the knowledge that they have settled everything for the unpleasant event of an emergency and have not left their surviving dependents in the dark about their own last will and testament.

The compulsory portion or statutory share secures that the beneficiaries receive a minimum share of the estate of the deceased. The idea behind this is that the testator has a certain duty of care for close relatives such as the spouse or their own children even after death. There are various reasons for not wanting these legal heirs to share in one’s estate and therefore disinheriting them. However, these relatives are generally entitled to the compulsory portion regardless of the will of the testator and this amounts to half of the statutory inheritance quota. In particularly serious cases, it is possible to deprive the relatives of the compulsory portion by means of appropriate wording in the last will if, for example, they are criminals or are seeking the testator’s life.

The legal obstacles to deprive someone of their compulsory portion are very high. However, it is possible to reduce the compulsory portion by certain measures when still alive. This is often done by lifetime donations to third parties or one’s own children which reduce the estate. Especially in case of real estate this can be useful as real estate often constitutes a big part of the estate as it has a high value. When trying to reduce the compulsory portion, many things should be taken into account as the person entitled to compulsory portion has a claim to augmentation of compulsory portion if the decedent dies within the first ten years after the donation which is reduced by 10% each year. Furthermore, the reduction of the compulsory portion can get problematic if the donor reserves a right to continue living in the real estate or any other right to the subject of donation.

To make sure not to fall into a trap and actually reduce the compulsory portion in alignment with your own wishes, we highly recommend seeking legal advice. With us, you are legally on the safe side!

One might assume that in inheritance cases it only matters what properties the decedent had at the time of his death and that this is all the heirs and the persons entitled to compulsory portion can claim. However, the legislator wanted to avoid that statutory provisions can be fully bypassed by lifetime donations. Therefore, such gifts are taken into account to a certain extent in case of the decedent’s death and can alter the claims of the decedent’s close relatives in a way that was not intended.

The persons entitled to compulsory portion have a claim to augmentation of compulsory portion if less than ten years have passed after the donation or if the testator still had reserved a right to the subject of donation. Just like the claim to compulsory portion, the claim to augmentation of compulsory portion constitutes a payment claim of the entitled persons against the heirs. If, for instance, someone disinherits their son and gives a plot of land as a gift to their daughter, this may be out of a good intention however, it can lead to her brother having a very high claim against the daughter who has no choice but to pay that amount of money.

Apart from this risk, a lifetime donation provides certain benefits as well. In regard to taxes, those advantages can be quite significant compared to statutory provisions on inheritance tax. We would be pleased to consult you concerning the advantages and disadvantages of lifetime donations and to consider all relevant options for your specific situation with you.

Do you already know who you want to inherit your estate, but want to ensure that someone else can use the estate for a certain period of time in the event of your death? If so, it makes sense to include clear instructions regarding prior and subsequent inheritance when drawing up a will. In a joint will of spouses, it is often agreed that in the event of the death of one spouse, the other spouse will receive the estate first and the children should only inherit once the other spouse has passed away as well. The surviving spouse is referred to as the provisional heir and the children are the subsequent heirs. If you want to leave your estate to your grandchildren, another option would be to stipulate that their parents are to inherit the estate first as provisional heirs and then the grandchildren receive the estate as subsequent heirs when they come of age, for example. For the purpose of asset protection, prior and subsequent inheritance can also be useful in other constellations, for instance when divorced spouses, patchwork families or business succession play a role.

The appointed provisional heir is obliged to administer the estate properly in such a way that the subsequent heir is not disadvantaged by any dispositions. For example, the provisional heir may not sell any real estate that is part of the inheritance.

The actual structuring of prior and subsequent inheritances should be accompanied by a lawyer in order to avoid later misunderstandings in the interpretation of the will and to inform the parties involved of possible disadvantages from a tax perspective. We would be happy to advise you on your individual questions relating to estate planning.

In a last will and testament, anyone can determine what is to happen to their estate in the event upon which the estate passes to the heirs. This does not require a notary – even a few handwritten lines on a piece of paper can constitute a will. However, we recommend to seek legal advice to ensure that your last will and testament is actually carried out in accordance with your wishes. This will ensure that the inheritance contract or will does not raise any questions and instead clarifies every important aspect.

In a will, you can determine who you want to appoint as your heirs, who you want to leave a legacy to, what conditions you want to impose on both and how the execution of the will should be carried out. Those arrangements can be made regardless of family relationships.

An inheritance contract, on the other hand, can only be concluded with other persons – for example an heir or a legatee – and subsequently binds both parties, meaning that the testator can no longer make a deviating testamentary disposition without a corresponding clause in the contract. This can be useful if the appointment of an heir in the inheritance contract is linked to a specific counter-performance and you appoint the person who will care for you in old age as your heir, for example. An inheritance contract is also the best choice for benefitting non-married partners, which is why unmarried couples often use this alternative to a will. It is important to note that an inheritance contract only becomes legally effective with notarization – unlike a will.

A spouse’s will is the joint will of married couples in which the spouses are each other’s beneficiaries. The most common form of a spouse’s will is the so-called “Berliner Testament”, in which the other spouse is appointed as sole heir upon the death of one spouse and the joint children later on inherit everything when the second spouse also dies. The problem with this form of will is that people often forget that the children have a claim to a compulsory portion even in the event of the first death, which they can assert against the surviving spouse. Furthermore, the surviving spouse may wish to make a different testamentary disposition after the first succession, but this is not possible due to the binding effect of the spouse’s will. It is also difficult to amend or revoke such a will during your lifetime. We would be happy to advise you on how you can draw up a joint will that will still meet your expectations in the distant future.

Especially in conflict-ridden family situations, there is often a risk that a dispute will break out between the heirs over the division of the estate. But even otherwise very harmonious families can get into emotionally grueling conflicts due to grief, an uncertain inheritance situation and possible misunderstandings. This can sometimes lead to years of court proceedings that put an enormous strain on the family.

Poorly worded wills can lead to disputes that were not foreseen, let alone intended, by the testator. It is therefore important to consider exactly what your own wishes are and what interests your future heirs have when making provisions for inheritance. It can be useful to sit down with the future heirs and involve them in the estate planning. The concept of mediation under inheritance law has proven its worth here, as the discussion and planning are conducted by an external mediator in a way that focuses on the interests of all parties, and everyone works together to find a solution that ultimately satisfies everyone involved.

As it is often difficult to talk to relatives about one’s own death, many people want to make their last will and testament without the knowledge of their future heirs. If these are formulated clearly and in legal jargon, the will and testament often avoid disputes. However, if there is a chance that conflicts may arise in the event of an inheritance, various clauses can be included in a will to set out how conflicts between the heirs should be resolved, for example by including a mediation clause in the will so that the heirs initially seek an amicable solution instead of a legal dispute.

We will be happy to advise you on conflict prevention in testamentary dispositions and find a solution with you that will avoid unnecessary disputes between your family members as far as this is possible.