Berlin, Hamburg, Munich, Cologne, Dusseldorf — throughout Germany, over 121 billion euros are inherited and gifted every year. Have you just inherited something? An inheritance is not only a financial gain, but also a significant responsibility with strict deadlines, tax pitfalls, and often emotional conflicts. The sudden access to wealth — whether it is money, real estate, or valuables — brings challenges that many heirs underestimate. How do you deal with the financial and emotional consequences? What deadlines must you strictly adhere to? And how can a self-help group specifically help you? Read here the complete step-by-step guide. Back to overview: Inheritance & Estate.
An inheritance is a significant disruption that often comes unexpectedly. Suddenly, you are faced with decisions about assets, taxes, deadlines, and possibly also family conflicts within an inheritance community. Many people feel overwhelmed and seek guidance. An inheritance self-help group is a valuable starting point — both for emotional support and for exchanging experiences about legal and financial strategies.
You are not alone — and you have less time than you think.
The numbers speak for themselves: wealth transfers through inheritances and gifts regularly reach peaks beyond the 121-billion-euro mark in Germany. The current figure comes from the Federal Statistical Office. Hundreds of thousands of people face the same questions as you every year. Use this.
Important Deadlines: What You Need to Know Immediately
Before you think about investment strategies: An inheritance has strict legal deadlines. Those who miss these may inherit debts or pay unnecessary penalty interest.
The Five Critical Deadlines at a Glance
6 weeks — Deadline for renouncing the inheritance (from knowledge of the inheritance case and being called as an heir)
6 months — Extended renunciation deadline for foreign inheritance
3 months — Notification obligation to the tax office for inheritance tax
3 years — Deadline for the tax office to set inheritance tax
30 years — Statute of limitations for compulsory share claims (normally 3 years from knowledge)
Warning: Anyone who does nothing in the first weeks is automatically considered an heir — including all debts of the deceased.
First Steps After an Inheritance
The first and most important step after an inheritance is to remain calm — but not for too long. Many people feel overwhelmed by the new situation, especially if the inheritance is complex. You should take time to get an overview of the overall situation before making important decisions. A well-thought-out approach helps to optimally utilize the inheritance.
Checklist: The First 14 Days
Request multiple death certificates from the local registry office (at least 5 originals)
Have the will opened at the probate court, if available
Apply for a certificate of inheritance, if necessary
Review bank accounts, investment accounts, insurance policies, and contracts
Request land register extracts for existing real estate
Create an inventory of the estate (assets and liabilities)
If there is suspicion of over-indebtedness: Check the possibility of renouncing the inheritance
Contact a tax advisor and possibly a specialist lawyer for inheritance law
Check and secure documents
Secure all important documents such as wills, land register extracts, insurance policies, bank statements for the last twelve months, and ongoing contracts. These documents form the basis for all further steps and are crucial later for the inheritance tax declaration.
No hasty sale
Real estate, artworks, or other valuables should not be sold hastily. Have the value professionally assessed to ensure that you achieve the correct price. For real estate, a certified market value appraisal is often worthwhile — also for the correct determination of inheritance tax.
Seek professional advice
Experts such as tax advisors, specialist lawyers for inheritance law, or asset managers can help you clarify the legal and financial aspects of the inheritance. For inheritances over 500,000 euros, the advice becomes practically indispensable.
Tip: An inheritance self-help group can provide valuable guidance as a supplement — especially during the initial emotional phase.
Not every inheritance is a gain. If the estate is over-indebted or contains more burdens than assets, you can decline the inheritance — but only within six weeks.
Reasons for declining an inheritance
The deceased’s debts exceed their assets
Rehabilitation-required real estate with high remaining debt
Claims of third parties for compulsory portions that consume the estate
Tax burden exceeds the value of the inheritance
Strategic transfer to the next generation (generation leap)
How the decline works
The decline must be personally declared to the probate court or notarially certified. The fee depends on the estate’s value and usually ranges between 30 and several hundred euros. Important: A decline applies to the entire inheritance — picking cherries is not possible.
Note: If you are unsure about the debt situation, you can apply for a probate insolvency proceeding or a probate administration — your personal assets will then be protected.
Inheritance and taxes: Exemptions and tax classes
An inheritance brings tax obligations. The amount of inheritance tax in Germany depends on the family relationship and the value of the inherited assets. To avoid unpleasant surprises, you should know the exemptions and tax classes precisely.
If spouses or children inherit the family home and continue to live in it for another ten years, it remains completely tax-free — for children up to a living area of 200 square meters. Those who move out earlier lose the exemption retroactively.
Note: A tax advisor is indispensable for assets beyond the exemptions — the consultation costs are usually between 0.3 and 1 % of the tax savings.
Heirs’ community: When multiple people inherit
When multiple people inherit together, an heirs’ community is automatically formed. This is one of the most common sources of conflict in German inheritance law — and one of the main reasons why self-help groups are so in demand.
Typical conflict areas
Should the property be sold, rented out, or used personally?
How will the household goods be divided?
Who will manage the estate?
How will compulsory portions be fulfilled?
Solutions
Settlement agreement among heirs — consensual division, notarially certified
Withdrawal — one heir is paid out and leaves the community
Mediation — often cheaper than a court process in deadlocked conflicts
Partition auction — last option in complete blockage (often with value loss)
Insider tip: A partition auction regularly results in proceeds 20 to 40 % below the market value. An out-of-court agreement is almost always more economical.
Inherited property: Sell, rent out, or use it yourself?
In most larger inheritances, a property is the most valuable component. The decision on what to do with it shapes your financial future for decades.
Decision matrix
Option
Advantages
Disadvantages
Suitable for
Self-use
Tax exemption possible, rent-free living
10-year commitment, location constraint
Heirs with housing needs at the location
Rent out
Ongoing yield, appreciation, inflation protection
Management effort, tenant risk, maintenance
Long-term oriented heirs
Sell
Immediate liquidity, clear situation
Capital gains tax possible, market risk
Heir communities, acute cash need
Gift/transfer
Intergenerational planning, tax allowances every 10 years
Investing the inheritance: Real estate, ETFs or savings account?
Many heirs face the question of how they can use the inherited wealth meaningfully. A good investment strategy is crucial to preserve or increase the value of the inheritance. Diversification minimizes risks — focusing on one asset class maximizes them.
Investment strategy based on inheritance amount
Investing 1 million — Strategies for seven-figure wealth
Investing 10 million — Family office level
Example allocation: 500,000 euros inherited
50,000 € (10 %) — Money market account as emergency fund and liquidity buffer
An inheritance brings tax obligations. The amount of inheritance tax in Germany depends on the family relationship and the value of the inherited assets. To avoid unpleasant surprises, you should know the exemptions and tax classes precisely.
