The will and 10 tips on how to manage your inheritance properly

The independently drafted will must be completely handwritten by the testator, otherwise it is invalid.

Unregistered partners and stepchildren are not taken into account in the legal succession.

In the case of complicated family structures or many heirs, it is worth going to a notary.

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If you want to leave something, it pays to have a well thought out will.\nThis often spares surviving dependants unpleasant feelings or even disputes. Nevertheless, only about 30 percent of potential testators in Germany have taken precautions with a will. 40 percent have never dealt with the subject, according to a study by Deutsche Bank. The reason is believed to be complicated tax requirements and also frequent changes in tax law.\nTo help you navigate everything, we've answered the most important questions about wills.

What does intestate succession say?

If you do not have a will, you do not need to worry about the distribution of your inheritance, because then the legal succession automatically applies. However, as the testator you then have no influence on how it is distributed. The legal succession is based on a family hierarchy in which the following order applies: children, grandchildren and great-grandchildren, parents, siblings, nieces and nephews. Partners in a registered partnership also have a right of inheritance. Stepchildren and partners who are not registered or married are not taken into account in the legal succession.

The community of heirs

Under German law, a community of heirs is a group of persons to whom the estate of a deceased person is jointly assigned. The individual persons are referred to as co-heirs as opposed to sole heirs. If, for example, a testator has not made a will and leaves several children, they form a community of heirs according to the legal succession. The surviving spouse may also belong to this community of heirs. Since the interests in such a community of heirs can differ greatly, it is easy for trouble to arise among them. To prevent this, many spouses opt for a Berlin will.

A will can take care of that:

A will governs the following things:

• Appointing heirs and heiresses

• Determine pre and post heirs and heiresses

• Exclude persons from inheritance (disinheritance)

• Arrange one or more legacies

• Partition order or advance bequest

• Grant probate

What are the different types of wills?

1. Handwritten or private will for more flexibility

In contrast to the legal succession, with a will you can state your own ideas and wishes and deviate from the legal succession. You are therefore free to decide how you wish to distribute your inheritance.

Although you can make a handwritten will informally with pen and paper, there are important things you need to consider. Surely you want to prevent your will from leading to legal disputes.

Only self-written is valid

The handwritten will is valid only if the entire document is written entirely by you. You cannot use a signed computer printout or a typewriter. This is the only way to prove that you drew up the document. If the handwriting is not legible, you may attach a printed reading copy to prove originality.

Better to register with the probate court

You can keep the handwritten will at home, but you have no guarantee that your last will and testament will actually be found. If you want to be sure, you can deposit your will with the probate court for a one-off fee of 75 euros plus 18 euros for registration. This guarantees that the will will be opened after your death.

Clear and easy to read

The handwritten or private will must be easy to read and needs a clear heading such as ‘Will’ or ‘Last Will’. The place and name must be clear and for the will to be valid, you must sign it with your full name at the end. If you add any changes later, these must also be dated and signed.

• Well readable

• Clear heading and wording

• Clear indication of place and name

• All changes must be dated and signed

• Only valid with signature

These restrictions exist:

Anyone wishing to draw up a handwritten will must be of age. If the testator is no longer able to write his or her own will, he or she must have a notarial will drawn up by a notary. Handwritten wills are only possible for individuals, couples in a registered partnership or spouses.

2. The notarial will - legally flawless

Here, too, you can circumvent the legal succession and decide for yourself who you want to appoint as your heir and to what extent. Even if you leave a larger estate, or if your family has a complicated family structure with many heirs, it may be worthwhile to engage a notary.

The notarial will is filed with the probate court as a printed document signed by you. Fees are also incurred for a notarial will. The costs for the preparation by the notary or notary public are additional and depend on the amount of the inheritance. If the value of the estate is in the five-figure range, it can cost between 75 and 350 euros, depending on the lawyer. If the value is in the six-figure range, it can cost over one thousand euros or more.

3. The contract of inheritance - an alternative to the will

Unmarried couples who are not living in a registered partnership can protect each other with an inheritance contract and appoint each other as heirs or heiresses. The contract of inheritance is also often used in business succession. In an inheritance contract, both parties, the testator and the beneficiary, agree to the contract. The contract of inheritance is drawn up by a notary. It protects both parties, because it is binding and unilateral changes cannot be made. Both parties must always agree.

4. The Berlin will - standard for married couples with children

The so-called Berlin will is mostly used by married couples with their own children. The spouses appoint each other as sole heirs. Often, one's own children are appointed as subsequent heirs who will inherit after the death of the second spouse. The Berlin will is also possible for registered civil partnerships, but not for unmarried couples. The Berlin will must also be handwritten by one of the spouses or civil partners. Both put the date and signature at the end.

Pros:

With a Berlin will, the remaining spouse or partner has maximum security and disposes of all the assets.

• Stepchildren can also be included in the succession and then enjoy an allowance of 400,000 euros for inheritance tax, just like natural children. In the case of statutory succession, they would be excluded from the inheritance.

• The Berlin will ensures that assets remain in the family. If the children are appointed as the final heirs, this cannot be changed after the death of one of the spouses. Even if the remaining spouse remarries.

Disadvantages:

Children do not inherit until both parents have died. In theory, they could claim their compulsory portion after the death of one parent, as the Berlin will effectively "disinherits" them until the second parent dies. This can be prevented with a compulsory share penalty clause. The clause explains the following: "Should children request their compulsory share after the death of the first parent, they will also only receive the compulsory share after the death of the second parent". In most cases, this would not be worth it for the children.

• If it is a large fortune, the inheritance tax can be very high. For children, the tax-free amount is 400,000 euros. If there is no Berlin will, children could claim the allowance twice, on the death of each parent. In the case of a Berlin will, one tax-free amount is omitted. The remaining spouse has to pay inheritance taxes first and after his or her death the children are liable to pay taxes again.

• This can be circumvented by children inheriting a share of the estate on the death of the first parent or receiving it in the form of a legacy. They can then claim the allowance. For the surviving spouse, a usufructuary right can then guarantee financial security.

• In principle, the Berlin will cannot be changed after the death of one spouse. A clause inserted during the lifetime of both could provide more flexibility.

To inherit or to bequeath? What is the difference?

If the word "bequeath" appears in the will, it is a bequest. A bequest can be objects, money, real estate or their use. The recipient of the bequest is not part of the community of heirs. He or she shares neither obligations nor rights of the community of heirs. However, a bequest is also subject to inheritance tax. Usually, a bequeathed is informed of the bequest in writing by the probate court.

Conclusion

Regardless of which type of will is better for your purposes, it is generally worth thinking about the distribution of your estate and making provisions for it. With a handwritten document, you can easily do this yourself and are also very flexible in the distribution of your estate. You are welcome to use Ninebarc for this purpose. Everyone should definitely check the legal succession with regard to their own family. If you do not agree, you need a will or a contract of inheritance to distribute your inheritance as you wish.

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