The Right Words for the Expression of Sympathy: Speech to Wreath Choice

Finding the right words is very difficult, especially in a bereavement. No matter whether it is a funeral card, the inscription of a wreath ribbon or a funeral speech. The words should be chosen tactfully and carefully to pay the deceased the necessary honor. For those who find the choice of words difficult, we offer support and give some examples and tips for the appropriate words as a funeral service.

Pay Attention to the Level of Relationship to the Deceased

In order to find the right words and gestures in the case of bereavement, one should first of all be clear about the relationship one had with the deceased. It may well make a difference whether the basis of the expression of mourning was a rather business or clearly personal relationship. For example, surviving relatives do not expect profound thoughts when expressing sympathy if the deceased and the mourner had a purely business relationship. In this case, the standardized phrases (“With great dismay…”, “Deeply saddened I was…” etc.) may be used in the card text without any problems.

More demanding and also accompanied by the corresponding expectations of the relatives are condolences based on a previously very personal relationship with the deceased. For both sides – the immediate family of the deceased and the conductors – memories of shared experiences play a major role and influence the content and form of what is said.

But it can also be a great help for the conductor to find the right words and to fall back on the personal relationship with the deceased. The beginning of the conversation with the bereaved, even a speech or written condolences can help us to remember these personal encounters. Often, the right words and thoughts arise from these encounters, even without “outside” help.

The Introduction – Mourning and Salutation

And yet: It is often the moment of mourning that is the hardest. A funeral oration can be started well with a tactful funeral proclamation, condolence or condolences. Sayings of this kind deal with the topic of mourning, death, parting or loss. They are always empathetic and encourage reflection and contemplation.

For the entrance into a mourning procession it is however quite alright to begin with an important sentence or thought of the deceased, which remained in good memory to the conducting person. In this way, a personal bridge is immediately built between the deceased, the immediate bereaved and the speaker.

In the context of the later following personal words of condolence reference can be made to this saying. Afterwards follows the address of the mourning family. If there is a personal relationship to them, they should be adressed directly with their first name. More details: inheritance guide. Some formulations, which are well suitable as salutation, are for example love mourning family, love mourners, love family Mayer, …

The Words of Condolence – Personal Stories and Words of Condolence

After the salutation, the words of condolence should follow directly. Here the topic death can be adressed directly, but also personal memories of the deceased can be mentioned. Together experienced moments, small stories or anecdotes about the life of the deceased or simply the deep expression of grief. It is important to show the mourning family that the loss was also very painful for you, but that the memories, love and experiences are much stronger than death. Make sure to remain tactful and choose your formulations wisely. It helps to make some notes about the content of the speech before you start.

Stay True to Yourself

Many people are tempted to pretend to be sadder, more pious, more affected by expressions of sympathy than they really are. The reason for this attitude is often that the person conducting the conduction believes that a certain mourning attitude is expected of him. But the opposite is the case: whoever has not presented himself as a particularly spiritual person in his previous relationship with the deceased and the bereaved should not suddenly appear “more papal than the pope” in his words of condolence.

The basic rule is: Even in the event of a bereavement and with condolences, remain authentic. The person conducting the condolence should remain true to himself and his kind. Thus, a person who is fundamentally fun-loving and who has always met the deceased with humor and lightness may also take this attitude when expressing his or her condolences. Provided that one is really serious about this lightness. As a rule, people can sense very well whether their counterpart is really serious – even in the case of bereavement.

Grave and Wreath Ribbon – the Right Choice of Words

In the event of a bereavement, it is common for close family members, relatives and good friends to buy a wreath in memory of the deceased. For this purpose it is not only necessary to choose the flowers and the optical picture, but also to choose an inscription of the wreath bow. It can be both sayings, which come particularly from the heart but also a sensitive last greeting. Examples are words like ‘We will never forget you! – Yours …’ or ‘In silent remembrance’.

Mourning – Ideas and Suggestions for your Speech

So that you are not alone in writing the funeral proclamation, we have put together some ideas and suggestions for your funeral speech to help you find your bearings. Every funeral oration should contain something personal, which is why we recommend supplementing our ideas and suggestions with personal anecdotes or stories.

Beginning the Eulogy

• Dear Family XY,
• Dear Mrs. XY,
• We express our deepest sympathy for the death of your husband.
• I am deeply saddened and express my sincere condolences to you and your family on the death of your dear mother…
• We have prayed, trembled and hoped with you. But now we quietly mourn with you.
• We still cannot believe that your brother has left us forever…
• It hurts me a lot to lose a good friend…
• It is so unspeakably difficult to find suitable and comforting words.
• I would like to express my sincere condolences to you for the heavy loss through the death of your wife…
• It is so painful to lose a loved one so suddenly.
• We share with you the painful loss that you have suffered through the death of …
• We are all very saddened by the tragic loss of your beloved brother. Our sincere condolences as well as much strength for the difficult hours of mourning and farewell.

The Words of Condolence

• We will keep her in best memory and continue her life’s work in her spirit…
• Deeply touched, I would like to express my deepest sympathy to you.
• All who knew her were impressed by her charisma and her helpfulness…
• May the pain of death not overwhelm you and may the memory of our time together give you enough strength for the future.
• He was my best friend, I will never forget him…
• I wish you, supported by your children and grandchildren, to find enough strength to master the further path of life.
• We loved her very much, and her cheerful nature was always an example for us…
• I wish you a lot of strength and mutual love during this time
• Many people will remember her with gratitude and love…
• I hope that your grief will soon become a loving memory.

Sadness Quotes

Johann Wolfgang von Goethe

It is a distance that was, that we come from. It is a distance that will be that we go to.

The following quotation is also from Johann Wolfgang von Goethe. Absolutely true words, which anyone who has ever mourned can understand.

What you have deep in your heart,
one cannot lose by death.

Franz Kafka

You can see the sun slowly setting and yet get a fright when it is suddenly dark.

Ernest Hemingway

Only a few people are really alive and those who are never die. It does not count that they are no longer there. No one you really love is ever dead.

Dalai Lama

Inner happiness is not dependent on material circumstances. It is rooted in our mind

Confucius

All worldly things are only a dream in spring. Think of death as a homecoming.

Theodor Fontane

Still it will be! And as the deep peace
a quiet contraction now went through,
there it may be that isolated
the earth soul flew upwards.

Thomas Mann

The bonds of love are not cut with death.

William Shakespeare

We are such stuff as dreams are made on, and our little life is rounded with a sleep

Almost no Income Tax: New York Times

I myself have been dealing with finances for a long time. Why? Finances are a matter for the boss. Your tax advisor is often only “consultant”, not “designer”, I know that from my own experience. Then the New York Times had a headline yesterday:

Story: 750$ Income Tax

“Donald J. Trump paid $750 in income taxes (or federal income taxes in the United States) in the year he won the presidency. He paid another $750 in his first year in the White House. In 10 of the previous 15 years, he had paid no income taxes at all-mainly because he reported losing much more money than he earned.”

While the president is leading a re-election campaign, which according to polls is in danger of losing, his finances are under stress, he has suffered losses and hundreds of millions of dollars in debt, which he has personally guaranteed, are coming due. He is also under pressure from a decade-long dispute with the Internal Revenue Service over the legality of a $72.9 million tax refund that he demanded and received after declaring large losses. A negative ruling could cost him more than $100 million. – Extract New York Times.

At a briefing at the White House on Sunday, Trump denied the New York Times story and claimed that he pays “a lot” in federal income taxes.

“I pay a lot, and I pay a lot of federal income taxes” – Donald Trump

Trump added that he is willing to release his tax returns as soon as he is no longer audited by the Internal Revenue Service, which, he said, “treats me badly.”

Must a US president disclose his tax return?

Importantly, the President is not required to keep his tax returns during the audit, despite his repeated assertions to the contrary. Trump also refused to answer in the briefing how much he paid in federal taxes.

Tax Avoidance: How does he do that? 4 examples

The Times article describes a number of corporate and transactional tax claims that could raise significant audit issues for the president and his business organizations. It also points out ways in which the tax laws provide for entrepreneurs to reduce their taxes.

Note, for further details see the full article on Investopedia. Here are 4 examples from the article:

Casino ‘Waiver’ Loss

The Times’ research puts certain tax reduction strategies on Trump’s tax returns in the spotlight.

The $70.1 million refund received for 2005-2007 appears to be due to the recovery of approximately $700 million in business losses claimed for 2009. These losses were probably based on the allegation that Trump Atlantic City’s casino business was completely “abandoned” (Source: IRS. “Publication 544 (2019), Sales and Other Dispositions of Assets. Accessed Oct. 1, 2020).

They would be permissible provided Trump received nothing in return for giving up its interest in the business. However, records of the bankruptcy proceedings show that Trump received 5% of the shares of the successor company, which would have disqualified any loss from the abandonment and limited its deduction to a loss of $3,000 for the year (source: IRS. “Part I, Section 165. Losses.” Accessed Oct. 1, 2020)

Consulting Fees vs. Employee Compensation vs. Gift

Unspecified “consultancy fees”, which can be seen in tax returns, may indicate a common strategy for reducing corporate income and taxes. The $747,622 in consulting fees paid to Ivanka Trump raises several questions. As an employee of the Trump organization, Ivanka should not be paid as a consultant, that is, as an independent contractor.

Unlike employee compensation, consultant fees avoid withholding taxes that are payable by the payer. But in order to be deductible, they must be reasonable, marketable amounts. Although a consultant is subject to reporting and taxation, Ivanka may be able to avoid any tax liability. As a real estate professional, Ivanka may have enough real estate losses to offset the payment. This fee deduction may cause the IRS to raise another issue. Officials may question that the fee – which far exceeds the annual gift tax exemption of $15,000 for 2020 – is in fact a transfer of assets to a family member on which the transferor owes gift tax (source: IRS. “Publication 950.” Accessed Oct. 1, 2020).

Business vs. Personal Expenses

Although not all Trump’s business expenses are explained, the article lists items that may be non-deductible personal expenses (source: IRS. “Publication 529.” Accessed Oct. 1, 2020)

It is noted that on this basis, the IRS may not allow deductions for aircraft used for personal travel and television entertainment expenses. Since the deductions for attorneys’ fees are stated as a lump sum, The Times wonders if the total amount includes fees paid to attorneys representing Donald Trump, Jr. in investigations and the President’s personal legal agreements to obtain confidentiality agreements from the plaintiffs.

Residence or Investment?

The Trump Seven Springs housing estate in Bedford, N.Y., asks additional questions. Although Forbes reported that Eric Trump described the property as a personal residence, Donald Trump called it an investment and deducted the $2.2 million property tax as a business expense. Wealth tax deductions for personal residences are subject to a $10,000 cap on state and local tax deductions (IRS. “Topic No. 503 Deductible Taxes.” Accessed Oct. 1, 2020).

Reading tips: Asset Accumulation & Co.

Here I have some reading tips for you:

1. “Billion-dollar gift: shares largely tax-free”
2. Taxes & Assets: learning from investor experiences

“Billion-euro Gift: Ahares Largely Tax-Free”

“Billion dollar gift for Döpfner – largely tax-free?” – this headline is not from me, but from the morning mail. In fact, Matthias Döpfner has turned the publishing house upside down as boss. While owner Friede Springer stands confidently behind his decisions. Print shares were sold, new online media such as Business Insider, Idealo, Immowelt and StepStone were acquired. Already in 2012 Döpfner has received a big share package for more than 70 million Euro, now a “billion-dollar gift” for the Axel Springer boss is going to go, according to Manager Magazin. The 57-year-old media manager is increasing his previous stake in Axel Springer SE from just under three percent to a total of around 22 percent.

Tip! How does it work that you can get a block of shares almost tax-free? A little further down in the article I explain the methodology, or rather the law behind it.

• • Give away shares: largely tax-free?

Understand and Convert Taxes & Build up Assets

Tax optimization, tax-free, the most popular buzzwords when it comes to wealth accumulation. But how do you actually convert private wealth into taxes? My tip, as before, is to learn from professionals who have all been through it.

Always remember: taxes are a matter for the boss.

• Convert taxes into private assets

Share Gift and Company, PS: Tax optimization is legal

Tip! How does it work that you can get a share package almost tax-free? A little further down in the article I explain the methodology, or rather the law behind it.

First of all, a brief overview: Mathias Döpfner, head of the Springer publishing house, is given a large block of shares as a gift. The parcel of shares given to him, from about 15 percent of Axel Springer SE, has an estimated value of a good one billion euros. According to current news, he will hardly have to pay taxes on it. A “billion-euro gift for Döpfner”, according to the Morgenpost. The Tagesschau (both German) summarizes it best:

“Springer boss Döpfner rises to become major shareholder of the Berlin media house. Publisher’s widow Friede Springer sells her confidant around 4.1 percent of the share capital and gives him another 15 percent or so”

Before we look at how such a gift is structured so that no or hardly any tax is due, here is a rough look at the publishing house Axel Springer SE and its development under Döpfner.

Here’s a quick reading tip: Today it flickered through the news tickers of the world. According to the New York Times, US President Trump pays only 750 Euro income tax. It gets even better, according to the New York Times Trump paid no income tax in 10 of 15 years from 2000 onwards. How does he do that?

• If the US president pay only $750 income tax

Axel Springer SE: Development under Döpfner

As already described in the introduction, he needed changes and Friede Springer clearly sees him as her successor.

The rapidly growing online business boosted earnings before interest, taxes, depreciation and amortization to 309 million euros in the first six months. This is the highest operating profit in the history of the Group. The digital business accounts for around a third of the profit – and the trend is rising, so that Handelsblatt.

How does the turnover develop over time? The Federal Statistical Office reports: “In 2019, the turnover of Axel Springer SE was more than 3.1 billion euros […]. There has been a tendency for revenues to increase since 2007, but the highest revenues of almost 3.3 billion euros were generated in 2015.

AxelSpringer SE at a glance:

• CEO is Mathias Döpfner since Jan. 2002
• The major owner is Kohlberg Kravis Roberts & Co. (43.54%)
• Revenues in 2019 amounted to EUR 3.1 billion
• 16,120 employees in 2019
• Headquarters is Berlin
• The founder of the publishing house was Axel Springer

Subsidiary of Axel Springer

While print shares were disposed of, Döpfer and Springer invested primarily in digital business models. The Axel Springer SE includes among others:

• AWin (Affiliate Platform)
• Ideal
• Immowelt Holding AG
• StepStone

Of course, the publishing house still includes print products, as well as BILD and TV stations like WELT.

• Bild group (Bild , Bild am Sonntag, bild.de)
• Bild magazines (like Computer Bild, Sport Bild, Auto Bild, Audio Video Foto Bild)
• Welt Group (Welt, Welt Kompakt, Welt am Sonntag, welt.de)
• Welt-TV (World, N24 Documentary)

Axel Springer SE: Share Price (Realtime)

Finally, a look at today’s share price with a review of the year:

• WKN: 550135
• ISIN: DE0005501357
• Symbol: SPR

73 million: First transfer already 2012

The Süddeutsche will report as early as 2012 on the first transfer of shares from Friede Springer to CEO Mathias Döpfner worth around 73 million euros.

“The generosity has a “purely private background”

The Pressehaus said:

In order to fend off overly curious journalists, Springer agreed on this language regulation. It also has an impact on how much tax Döpfner has to pay on the gift, so on in Southern Germany.

“If the tax office were to come to the conclusion that the reason for the share transfer was Döpfner’s employment relationship, he would have to pay millions in wage tax on the gift. With the solidarity surcharge, around EUR 36 million in taxes would be due. If, on the other hand, Döpfner succeeds in convincing the office that Friede Springer gave him the shares out of pure affection, he could save a lot of money. Under certain circumstances he would then even have to pay only around 2.5 million Euro to the tax office.”

Why Largely Tax-Free? Explanation

First of all there is a tax-free amount for all donations. The regulations are laid down in the Act on Inheritance and Gift Tax.

Free Amount in Case of Gift (Capital): Outside the Family

In general, the following rates from the Inheritance Tax and Gift Tax Act (ErbStG) § 16 allowances for inheritance and gift apply.

(1) In cases of unlimited tax liability (§ 2 paragraph 1 number 1) the acquisition remains tax-free:

1. Of the spouse and the life partner in the amount of 500 000 euros;
2. Of children within the meaning of tax class I No. 2 and children of deceased children within the meaning of tax class I No. 2 in the amount of 400 000 Euro;
3. Of the children of the children within the meaning of tax class I No. 2 in the amount of 200 000 Euro;
4. Other persons in tax class I in the amount of 100 000 Euro;
5. Of persons in tax class II in the amount of 20 000 euros;
6. (omitted)
7. Other persons in tax class III in the amount of 20 000 Euro.

The Morgenpost reports accordingly:

Actually, the publisher’s widow’s gift to her top manager would not be such a generous one. For gifts outside the family, 50 percent gift tax is due above the allowance of 20,000 euros. In this case, this means almost half a billion euros. But there are exceptions, for example for business assets.”

Free amount for donation: Within the family (excursus)

Within the family you have a higher allowance:

• Spouses and registered partners: 500.000 Euro
• Donation to children: 400.000 Euro
• Gift to grandchildren: 200.000 Euro

If there is little or no degree of kinship, the tax-free amount is, as described, only 20,000 euros.

Share Package Almost Tax-Free: Method Explained

Why is a large part of the share package now largely tax-free?

The package has a volume of 15%. During the transfer, a law was exploited to prevent the possible insolvency of companies. Due to the high volume, Axel Springer SE could get into financial difficulties. As a reminder, the gift tax outside the immediate family is 50%, the tax-free amount is only 20,000 euros.

Gift tax: 50%

Exempt amount: 20.000 Euro

Tax-free: Possible financial threat to Axel Springer SE

The possible financial threat to Axel Springer SE is therefore the legal sticking point, which is why a large part of the tax (according to current news [03.10.2020]) is waived.

Gift, Capital Gains, Real Estate – Almost Tax-Free ?

We have answered the question from the headline: “Largely tax-free? Now we come to the second part: “Can I do that too?” Short answer: Yes. The way: Coaching from a professional, learn, understand, actively apply. The important thing is that taxes are a matter for experts.

You want to Save Taxes like a Pro?

You want to save taxes like the professionals? I don’t write any names because I don’t want to make a big advertisement, but there are great tax coaching services just a google search away.

I have been following several self-made real estate investors for a long time. Anyone who has made it from zero to a millionaire with legal methods can only be a good role model for me.

The best thing about tax optimization, it is absolutely legal!

US President Pays only 750 Dollars Income Tax

As I have reported here in the article about the American President’s meager 750$ reported taxes, tax optimization is common practice. Everyone who submits a tax return and for example deducts travel expenses is actively minimizing taxes.

Financial optimization is especially about understanding and knowledge: Knowing that your tax advisor does not have and will never have. If he or she did, he or she would be an investor himself.

In other words: If you know the legal methods and ways of tax optimization, you can instruct your tax consultant to do the right things. The tax consultant should then take care of the operational work. Everything strategic, methodical, you should master.

Understand and Convert Taxes & Build up Assets

Tax optimization, tax-free, the most popular buzzwords when it comes to wealth accumulation. But how do you actually convert private wealth into taxes? My tip, as before, is to learn from professionals who have all been through it.

Always remember: taxes are a matter for experts.

• Convert taxes into private assets

Intestate succession

In principle, the topic of “inheritance and estate” is always in good hands with a (specialist) lawyer. The construction of pre- and post-heirs is complicated. Nevertheless, there are a few easy-to-understand principles that every property owner should know and can also easily implement themselves. Here are some questions that come up again and again and which we will answer in the following.

• Pre-heir and post-heir – what is it all about?
• My mother is the previous heir. Is she allowed to sell her part of the house so easily?
• Is the owner (previous heir) entitled to sell the house without the consent of the subsequent heir or does the latter have to agree to the sale?
• I’m heir apparent, now what?
• House sale despite succession?

Pre-heir – post-heir: what does it mean?

Anyone who wants to bequeath something is free to determine the heirs and can therefore also transfer his or her inheritance to several persons in a staggered manner. The subsequent heir is then the person who receives the inheritance only after another person – the so-called previous heir – has previously inherited. The testator can, for example, choose an occasion or a point in time for the succession to occur, such as coming of age or passing the master’s examination.

The previous and subsequent heirs are both legal successors of the testator. However, they do not form a community of heirs in which they would inherit at the same time, but inherit one after the other due to the instigation of the testator.

Pre- and post-heirs for married couples – safeguarding assets in the family

The inheritance regulation by means of a pre- and post-heir is often used by married couples. In this way, they can ensure that all their joint assets remain in their own family. For this purpose, the spouses each name the other as a pre-heir and the joint children as a post-heir. Even in the event of remarriage after the death of one spouse, the assets cannot be inherited by the new spouse.

Pre-heirs – tasks, duties and rights

Pre-heirs are also referred to as ‘temporary heirs’. This is because they only have limited power of disposal over the estate. Particularly in the case of inherited real estate, this situation has consequences for both sides – i.e. the previous and subsequent heirs. First of all there is the inheritance tax. This is always payable initially by the previous heir.

• The previous heir must pay the inheritance tax from the funds of the previous inheritance.
• The previous heir is only the heir until the next of kin occurs.
• If a property is inherited and occupied by the previous and subsequent heirs themselves, no inheritance tax is payable
• The property must be owner-occupied for at least ten years after acceptance of the inheritance
• The owner-occupied living space must not exceed 200 sqm.
• Only then no inheritance tax is due

Statistics – Heritage in Germany

Read more facts and figures here: Real Estate Statistics. We also have other interesting studies, surveys and statistics on the topic: Inheritance in Germany.

Restriction of disposition – exceptions and rights of the previous heirs in real estate transactions

The previous heir cannot dispose freely of the estate. Inheritance law imposes certain restrictions on the disposal of the estate by the previous heir, because in the event of a subsequent inheritance, the assets should accrue to the subsequent heir undiminished. For example, the previous heir may not sell or give away any property from the estate without the consent of the subsequent heir. The previous heir may use other inheritance items for himself, but he is obliged to compensate the successor for the value of the item after the succession has occurred.

However, the testator may exempt the predecessor from many of these restrictions. This is then referred to as an exempt preheir. The “exempt estate” – which may then also include real estate – may be sold by the exempt previous heir alone, without having to obtain the consent of the subsequent heir.

Pre-inheritance & post-inheritance – advice from a lawyer

Broker tip: Watch out when buying inherited real estate

If a property from an estate is to be sold, there are many details to consider – for the seller and also for the buyer. At the latest here – after a lawyer has also been consulted for advice – the broker should come into play. The experts at Lukinski – Lukinski – have the necessary expertise to help with these complex issues.

Especially important: the real estate agent has the necessary distance to accurately determine the value of an inherited property. With inherited houses, money is often given away unnecessarily because the heir wants to get rid of his inherited property quickly. The opposite is also possible: so many memories and emotions are attached to the inherited house that the value is set too high. The property is then difficult to sell.

Find a broker as a pre-heir

Finding a broker as a pre-heir means paying attention to very special services. This is because the broker must be very familiar with the legal intricacies of succession and the connections between the pre- and post-heir.

Lukinski will perform for you as a pre-heir:

• The neutral valuation of your inherited property
• The professional sifting and arrangement of all documents from the inheritance necessary for the sale
• The professional and sales-promoting staging of your object (photos/videos)
• Your emotional state is given special consideration
• The proper creation of an appealing sales exposé
• The discreet placement of your property in all relevant media
• The analysis of our extensive customer file for suitable buyers
• The discreet organisation and execution of viewing appointments
• The discreet conduct of negotiations with prospective buyers (if desired, without your presence)
• Finalization of the purchase contract in cooperation with notaries

When will the broker be paid?

A reputable agent and real estate salesperson will only be paid upon a successful closing and will discuss their fee rate right at the beginning of the sales process. Openness and transparency are therefore fundamental criteria by which the house seller recognizes the good broker.

How much is inherited in Germany?

Here you can see inheritances and gifts in Germany. The survey ranges from 2008 to 2018 and shows that over 110,000 inheritances are distributed each year. Great potential for dispute if the community of heirs does not agree. Here you can find more interesting studies, surveys and statistics on the topic: Inheritance in Germany.

You can find more statistics at Statista

How much money is inherited?

Since 2014, Hamburg in particular has been at the top in Germany. Hamburg is currently at the top with 167.80 euros. In no other city is so much inherited. With a population share 2.19% of total Germany (1.82 million out of 82.79 million), a total volume of 305,731,600 euros is inherited annually.

• Population share Hamburg 2.19%
• Inheritance in Germany (comparison year) 109,635; statistically 2,401 inheritances in Hamburg
• Total inheritance (Hamburg / year) 305.731.600 Euro

You can find more statistics at Statista

Pension equalisation – what happens to the pension in the event of divorce

Pension equalisation only becomes an issue when you get divorced, because both partners want to be secure for their old age after the divorce. However, how is this pension equalisation distributed, who benefits from it and how fair is it really?

The facts – who benefits from pension equalisation?

People who work acquire pension entitlements for old age in different ways. While employees are usually compulsorily insured with the German pension insurance, civil servants are entitled to a civil servant pension and self-employed people ideally provide for their old age on their own responsibility.

In the event of divorce, the equalisation of p ensions ensures that the spouse benefiting from it is able to provide for his or her own retirement independently of the other partner. Originally, the legislator had the housewife marriage in mind with this claim, in which the wife looks after the joint children and therefore foregoes her own income and savings for old age. In the case of pension rights equalisation, the pension rights acquired during the marriage are therefore divided equally between the partners. However, this entitlement does not apply to non-married and non-marital partners, as in these relationships each person remains responsible for his or her own pension.

• Everyone who works acquires pension rights for old age
• In the event of a divorce, the provision for old age must be regulated for both partners, which is regulated by the pension equalisation scheme.

Which pension entitlements are included? – Pension & Co.

The figures make it clear how important pension equalisation is, because in 2011 more than 716,000 retired people benefited from pension equalisation and supplemented their pensions with an average of 210 euros per month by transferring the pension entitlements of their ex-partner. But which pension entitlements are included in the pension rights adjustment at all? The law stipulates that all pension benefits acquired by a spouse through employment during the marriage are included in the pension equalization. However, benefits that are of a compensatory nature, such as pensions from accident insurance or life insurance, are not eligible for equalisation.

• The pension belongs to the entitlements that are regulated within the framework of the pension rights adjustment.
• Not eligible for compensation are benefits that have a compensatory character

Avoiding pension rights adjustment – is this possible?

Pension equalisation is not always fair and is therefore not applied in certain cases. If the marriage lasts less than three years, if the equalisation value is less than 50 euros per month or if the pension difference is only about 25 euros per month or less, pension equalisation is not considered necessary.

However, if none of the above points apply, pension equalisation can also be prevented in another way. Anyone who has excluded pension equalisation in a notarised marriage contract avoids pension equalisation proceedings in the event of divorce. However, such an agreement can still be concluded during the divorce as long as the spouses are both financially secure for old age and agree to the agreement. However, a pension equalisation can also be avoided by combining it with the equalisation of gains pending on divorce. Here, for example, a property can be transferred for old-age provision, provided that the family court considers this agreement to be appropriate.

• Pension rights adjustment is not necessary in certain cases
• The pension equalisation can also be excluded by a notarised agreement.

Conclusion on pension equalisation – this is how important the regulation is for married couples

At first glance, the pension equalization is fair for both parties, but in practice it shows only problems with which the spouses have to struggle. It becomes particularly problematic for married couples who only divorce at an advanced age. Where both partners together were well provided for in old age, they often find themselves with only two poor households after the divorce. If a divorce is finalized at a young age, both parties still have the opportunity to supplement their pensions as they continue to work, while older couples often face financial ruin. So instead of a schematic division, it can often be more beneficial for older couples if one party keeps the pension rights and exchanges them for other assets, such as a property. So the legislation here is not entirely optimal, as it does not offer everyone the same opportunities and can be particularly difficult for older couples by necessity.

• The pension equalization actually regulates the provision in old age fairly, but does not take into account the disadvantage that some groups draw from it
• Older spouses in particular are not favoured by pension equalisation

The most important questions about pensions after divorce

When it comes to divorce and pensions, many questions arise. The equalization of pensions and the fair provision in old age for both parties is an important topic. To ensure that no questions remain unanswered for you, the experts at Lukinski answer all important questions on the subject of divorce and pensions.

What is the pension equalization in divorce?

The pension equalisation deals with all entitlements to a pension in old age acquired during the marriage. It is therefore about the pension and how it is divided between the spouses.

How fast is a divorce?

The length of a divorce depends first of all on whether the divorce is contested or amicable. Amicable divorces usually take between three and six months, while contested divorces can be delayed for up to a year.

What are the costs of divorce?

The cost of a divorce varies from case to case. The court determines much of the cost, which also depends on how many lawyers are needed and how long the divorce takes.

Who pays for the divorce?

Normally, the costs are offset against each other. This means that each party pays its own lawyer and half of the court costs incurred.

What is gain in marriage?

A gain describes an increase in assets that occurred during the marriage. At the end of the marriage, this must be calculated for the mutual equalisation of gains.

How long does it take to process the pension rights adjustment?

A divorce in which the pension equalization is omitted usually takes no longer than four months. Divorces where the pension equalisation is observed take between five and nine months.

Can the divorce be denied?

Divorce can be refused by the spouse in principle. However, this is not possible on a permanent basis, as a compulsory divorce can be decided by the court after three years at the latest.

Divorce: guide, help and tips

Divorce is complex, it’s true. But you are not alone! Many let themselves separate and in fact, a large part always finds a good solution. Only a small part ends in a quarrel. So that you can prepare well, you will find here our small guides and tips on divorce, family, money and real estate.

• Divorce: Guide