American heir to an estate in Germany? Learn tax rules, probate steps, and how a U.S.-German law firm can maximize value and ease cross-border transfers.
Why Cross-Border Estates Feel So Complicated
German succession law is rooted in civil-law codes, not the common-law tradition familiar to most Americans. The governing statute—Bürgerliches Gesetzbuch (BGB)—automatically vests title in heirs at the moment of death. U.S. heirs therefore become Gesamtrechtsnachfolger (universal successors), meaning they inherit assets and liabilities in one bundle. In the United States, by contrast, the estate is treated as a separate legal entity that distributes assets only after probate. Understanding this ownership shift is the first step toward protecting yourself from hidden debts or co-heir disputes.
Civil-Law vs. Common-Law Probate
| Topic | United States | Germany |
| Court involvement | Mandatory probate unless assets in trust/Joint Tenancy | Probate optional; heirs may file for Erbschein (certificate of inheritance) to prove title |
| Executor role | Personal Representative controls estate | No executor by default; heirs act jointly unless a Testamentsvollstrecker is named |
| Intestacy share of children | Varies by state | All children share equally; surviving spouse receives at least ¼ |
German Inheritance Tax (Erbschaftsteuer) at a Glance
Germany taxes heirs—not the estate—based on relationship and asset class. Rates run 7 %–50 % after generous allowances (€400 k per child, €500 k for a spouse). U.S. residents can claim the U.S.–Germany Estate and Gift Tax Treaty (1981) to credit German tax against U.S. federal estate tax, preventing double taxation on worldwide assets above the $13.61 m (2025) exemption. State inheritance taxes in the U.S. generally do not credit treaty relief, so plan accordingly.
Common Tax Traps for Americans
- German real estate always falls under German tax, even if the decedent was U.S.-domiciled.
- 401(k) and IRA balances are usually but not aleays outside German taxation.
- Filing deadline is six months from notification—miss it and late-payment penalties and interest may apply.
Selling or Liquidating German Property
Because heirs acquire full title instantly, they can sell without probate once they hold an Erbschein or notarized U.S. will + apostille accepted by German land registries. Our team coordinates:
- Local valuation through sworn appraisers
- Brokerage listing in both German and international portals for best-price competition
- Capital-gains calculation and, where possible, treaty relief
- Remote closing so you never need to board a flight
Negotiating with Co-Heirs and Forced Heirship Rules
German law forces “compulsory shares” (Pflichtteil) for close family members disinherited by will. Disputes often arise when U.S. heirs expect sole ownership of vacation property. We routinely:
- Draft settlement agreements complying with § 2042 BGB (partition)
- Mediate buy-outs so one heir keeps the home while others receive cash equivalents
- Secure court approval when minors or incapacitated heirs are involved
How Our U.S.–German Law Firm Helps Heirs
- Carl Christian Thier, Attorney at Law and Rechtsanwalt, 20 + years cross-border experience—offices in Florida, New York, Munich, and Berlin
- Multilingual staff handling German registry filings, U.S. probate ancillary proceedings, and tax returns on both sides
- Network of real-estate brokers, art appraisers, and asset managers to maximize sales prices
- Flat-fee or success-based liquidation packages available
Next Steps for American Beneficiaries
- Collect documents – Death certificate, will, asset list.
- Email us for a free intake call – We outline jurisdiction, tax exposure, and immediate deadlines.
- Engage our dual-licensed team – We obtain your Erbschein, negotiate with co-heirs, liquidate assets, wire net proceeds, and file all necessary tax returns.
Ready to secure your German inheritance without the guesswork? Contact our U.S.–German inheritance team today for a complimentary strategy session.
*This blog post is for general information only and does not constitute legal advice or create an attorney-client relationship.