American heir to an estate in Germany? Learn about tax rules, probate procedures, and beyond, how a German-American law firm can maximize value and facilitate cross-border transfers.

German inheritance law is based on civil law, not on common law, which is widely used in the United States. The governing law—the German Civil Code (BGB)—automatically transfers ownership to the heirs upon death. US heirs become universal successors, meaning they inherit assets and debts jointly. In contrast, in the US, the estate is treated as a separate legal entity, with its assets distributed only after completion of the probate process. This understanding of ownership is the first step in protecting yourself from hidden debts or inheritance disputes.

In Germany, heirs—not the estate itself—are taxed based on their relationship to the deceased and the type of assets involved. After deducting generous exemptions (€400,000 per child, €500,000 for spouses), tax rates range from 7% to 50%. U.S. citizens can take advantage of the double taxation treaty between the U.S. and Germany (1981) to offset German inheritance tax against U.S. inheritance tax and thus avoid double taxation of worldwide assets exceeding the exemption of $13.61 million (2025). State inheritance taxes in the U.S. generally do not take treaty exemptions into account; therefore, appropriate planning is necessary.

1. German real estate is always subject to German taxation, even if the deceased had their residence in the USA.
2. Balances in 401(k) and IRA accounts are generally, but not always, not subject to German taxation.
3. The filing deadline is six months from the date of notification—failure to meet this deadline may result in late filing penalties and interest.

Since the heirs acquire full ownership immediately, they can sell the property without going through probate proceedings as soon as they have a certificate of inheritance or a notarized U.S. will with an apostille that is recognized by German land registry offices. Our team coordinates:

• Local appraisal by sworn experts
• Listing by real estate agents on German and international portals for best price competition
• Calculation of capital gains and, where possible, exemption under a double taxation treaty
• Remote closing, so you never have to board a plane again

German law provides for mandatory shares for close family members who have been disinherited by will. Disputes often arise when U.S. heirs claim sole ownership of a vacation home. We routinely handle these cases:

• Drafts of settlement agreements in accordance with Section 2042 BGB (Partition)
• Arranging for a legacy so that one heir retains the house while the other heirs receive a corresponding sum of money.
• When minors or heirs who are legally incapacitated are involved, court approval must be obtained.

• Carl Christian Thier, Attorney, over 20 years of cross-border experience – Offices in Florida, New York, Munich and Berlin
• Multilingual staff who handle German registry entries, U.S. probate proceedings, and tax returns in both countries.
• Network of real estate agents, art appraisers, and wealth managers to maximize sale prices
• Fixed-price or performance-based liquidation packages are available

1. Gather all necessary documents – death certificate, will, asset inventory.
2. Contact us by email for a free initial consultation – we will explain the jurisdiction, tax risks, and immediate deadlines.
3. Engage our dual-licensed team – we will procure your certificate of inheritance, negotiate with co-heirs, liquidate assets, transfer the net proceeds, and file all necessary tax returns.