Estate (Nachlass)
Upon an individual’s death, all rights and obligations of the decedent - the estate (Nachlass) - pass to the "heir". See § 1922 German Civil Code (BGB). Generally, even contractual agreements, e.g. a lease contract, pass to the "heir". However, some (contractual) rights may end with the death of a person and will then not pass to the "heir". Some assets pass "outside of the estate", e.g. by way of a payable on death account (Vertrag zu Gunsten Dritter) or life insurance (Lebensversicherung). In contrast to the laws of most common law jurisdiction, e.g. the U.S., the estate is not a legal entity for German tax purposes, e.g. German inheritance tax (Erbschaftsteuer) or income tax (Einkommensteuer).
Related publications
- Administration of a nonresident Decedent’s German Assets
- Administration of a U.S. Domiciled Decedent’s German Assets by a U.S. Personal Representative
- Disclaiming an Inheritance in order to avoid German Inheritance Tax
- Executor of the Estate under German Law
- German Inheritance and Probate Law - FAQ
- German-American Probate and Inheritance Law - FAQ
- Intestate Succession in Germany
- Liability for Estate Debts in Germany