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Germany · USA

Inheritance law between
Germany and the USA

Estates with a connection to Germany and the United States can involve different legal systems, assets and authorities. We advise on cross-border inheritance matters and, where required, coordinate the cooperation with advisors in the United States.

Request a consultation Germany-USA

Overview

When is an estate a German-US matter?

An international estate does not require an unusual set of facts. It is enough that one of the persons involved lives in the United States or that an account is held there. Typical situations are:

  • the deceased lived in Germany, the heirs live in the United States
  • the deceased lived in the United States, assets are located in Germany
  • real estate in Germany forms part of the estate
  • bank accounts, securities accounts or shareholdings are located in the United States
  • German-American families with a center of life in both countries
  • business assets with a US connection

In all of these cases the estate touches two legal systems at once. Succession, the formal validity of a will, proof of heirship and the administration of the estate may each be assessed differently.

Applicable law

Which succession law applies?

From the German perspective, the EU Succession Regulation determines which law applies to the estate. As a rule, it refers to the last habitual residence of the deceased and applies universally – including where that residence was in a third country such as the United States.

Where a third country is involved, it must also be examined whether the law so designated accepts the reference or refers back to, or on to, another law. The United States has no uniform succession law: the law of the individual state is decisive, and for real estate it often follows different connecting factors than for movable assets.

In addition, a person may choose the law of the state of which he or she is a national. Such a choice of law can create clarity – but it must fit the assets and the documents already in place. General statements are out of place here; each case has to be examined individually.

Planning

Wills and estate planning between Germany and the USA.

Those who hold assets in both countries should not execute two independent documents, but one coordinated arrangement. We assess existing wills, draft new dispositions with the foreign connection in mind and advise on lifetime transfers. Notarial deeds are recorded by Darja Hannekum as German civil-law notary (Notarin) – an independent, impartial public office holder, not comparable to a US notary public – at her official seat in Ahrensburg.

Discuss your estate planning

  • existing wills and contracts of inheritance
  • cross-border estate planning
  • German real estate in the estate
  • business succession with a US connection
  • coordination of several documents
  • powers of attorney and advance planning

Taxes

Inheritance tax and US tax law.

Tax advice – on German inheritance tax as well as on US estate or inheritance taxes – lies with the tax professions. This is a matter of professional responsibility: each question belongs with the advisor qualified to answer it.

At the same time, the tax side is regularly decisive in a German-US estate, because both countries may assert a right to tax and deadlines are running. We therefore point out at an early stage where tax questions are affected and work with German tax advisors, Certified Public Accountants (CPAs) and other tax professionals – in step with the succession planning, so that both sides fit together.

Administration

Administering an estate across borders.

An international estate requires different documents, forms of proof and procedures – and they run in parallel rather than one after the other.

01

Establishing the facts and the assets

Where the last habitual residence was, which assets are located where, and which wills or other dispositions exist.

02

Determining the applicable law

Assessment under German conflict-of-laws rules, coordinated with the law of the US state concerned.

03

Proving heirship

A certificate of inheritance (Erbschein) or a notarial will together with the record of its opening by the probate court – the key to the land register and the banks (inheritance law).

04

Dealing with the assets

Bank accounts, securities accounts, real estate and shareholdings in Germany; in parallel, where applicable, probate proceedings in the United States.

05

Partition of the estate

Distribution among the heirs and, where required, dissolution of a community of heirs (Erbengemeinschaft).

Tax questions in Germany and in the United States are handled by tax advisors, CPAs and other tax professionals; we coordinate with them.

Cooperation

Two legal systems, one point of contact.

We advise on the German side of the estate: determining the applicable law, drafting wills and transfers, proving heirship and administering the assets located in Germany.

Where the law of a US state is concerned – for probate proceedings there, for example, or for assets located in that state – the assessment is made by, or together with, attorneys licensed in that state, and we coordinate the cooperation. We prepare the questions, obtain their assessment and bring the results together.

Questions and answers

Frequently asked questions on German-US inheritance matters

Which succession law applies to a German-US estate?

From the German perspective, the EU Succession Regulation determines the applicable law; as a rule, it refers to the last habitual residence of the deceased and also applies where that residence was in a third country such as the United States. If the law so designated refers back to another law, this may have to be taken into account. As the United States has no uniform succession law and the law of the individual state applies instead, each case requires individual examination.

What happens if an heir lives in the United States?

As a rule, an heir’s place of residence does not change the applicable succession law – that is determined by reference to the deceased. In practice, however, questions arise concerning proof of entitlement, service of documents, powers of attorney and payment abroad. In addition, German authorities and institutions require different forms of proof than American ones, and there are tax questions to be assessed by tax advisors and CPAs.

What applies to German real estate where the heirs live in the United States?

For real estate located in Germany, the land register (Grundbuch) is decisive; heirship is proven to the land registry, as a rule by a certificate of inheritance (Erbschein) or by a notarial will together with the record of its opening. Where the heirs live in the United States, this proof is the practical core of the administration – which is why it should already be considered at the planning stage.

Is a German will recognized in the United States?

As to form, a broad standard applies: a will is generally formally valid if it meets the requirements of the place where it was made or of other recognized connecting factors. Whether and how a German will is given effect in probate proceedings in a particular US state is, however, governed by the law of that state – a question we clarify together with attorneys licensed there.

Do I need two wills, one for Germany and one for the USA?

Sometimes yes, sometimes no. Two coordinated wills can make administration easier in both countries; uncoordinated documents, by contrast, may in the worst case revoke one another – for instance through blanket revocation clauses. If two wills are made, they must be precisely aligned in content and in scope.

How is a German-US estate administered?

In Germany, by identifying the heirs, proving heirship, disposing of bank accounts and real estate and, where applicable, partitioning the estate among the community of heirs. In the United States, separate probate proceedings under the law of the relevant state may be required alongside. Both strands run in parallel and should be coordinated.

Your contacts

Inheritance law with an international dimension.

Darja Hannekum, Rechtsanwältin and German civil-law notary

Darja Hannekum, LL.M. (University of Miami)

Rechtsanwältin & German civil-law notary (Notarin)
Certified Specialist Lawyer for IT Law (Fachanwältin für IT-Recht)

Master of International Law (Miami), Rechtsanwältin and notary. She advises on succession arrangements and, as notary, records deeds at her official seat in Ahrensburg – wills and transfers of real estate, for example.

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Germany · USA

Think across borders.
Act with legal clarity.

Tell us about your matter between Germany and the USA. We will consider how we can assist you and which other advisors should be involved where appropriate.

Request a consultation

Hamburg +49 40 60 85 09 01 Ahrensburg +49 4102 77 87 230 info@hannekum-partner.de