{"id":1547,"date":"2025-04-30T00:00:23","date_gmt":"2025-04-30T00:00:23","guid":{"rendered":"https:\/\/urbanthier.de\/?p=1547"},"modified":"2026-05-24T12:53:52","modified_gmt":"2026-05-24T12:53:52","slug":"german-inheritances-from-the-usa-what-american-heirs-need-to-know","status":"publish","type":"post","link":"https:\/\/urbanthier.de\/en\/deutsche-erbschaften-aus-den-usa-was-amerikanische-erben-wissen-muessen\/","title":{"rendered":"German Inheritances from the USA: What American Heirs Need to Know"},"content":{"rendered":"
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German Inheritances from the USA: What American Heirs Need to Know<\/h1><\/div><\/div>\n\n
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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.<\/p>\n<\/div><\/div>\n\n

Why Cross-Border Real Estate Seems So Complicated<\/h3><\/div><\/div>\n\n

German inheritance law is based on civil law, not on common law, which is widely used in the United States. The governing law\u2014the German Civil Code (BGB)\u2014automatically 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.<\/span><\/p>\n<\/div><\/div>\n\n

Civil Law vs. Common Law Inheritance<\/h3><\/div><\/div>\n\n
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Topic<\/th>\n United States<\/th>\n Germany<\/th>\n <\/tr>\n <\/thead>\n
Court involvement<\/td>\n Mandatory probate, unless the assets are held in a trust or joint ownership.<\/td>\n A probate proceeding is optional; heirs can apply for a certificate of inheritance to prove their ownership claim.<\/td>\n <\/tr>\n
Role of the Executive<\/td>\n The estate administrator controls the estate.<\/td>\n No executor will be appointed; the heirs will act jointly unless an executor is named.<\/td>\n <\/tr>\n
The children's share of the inheritance<\/td>\n Varies by state.<\/td>\n All children share equally; the surviving spouse receives at least one-quarter.<\/td>\n <\/tr>\n <\/tbody>\n <\/table><\/div><\/div>\n\n

German Inheritance Tax at a Glance<\/h3><\/div><\/div>\n\n

In Germany, heirs\u2014not the estate itself\u2014are taxed based on their relationship to the deceased and the type of assets involved. After deducting generous exemptions (\u20ac400,000 per child, \u20ac500,000 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.<\/span><\/p>\n<\/div><\/div>\n\n

Common Tax Pitfalls for Americans<\/h3><\/div><\/div>\n\n
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  1. German real estate is always subject to German taxation, even if the deceased had their residence in the USA.<\/span><\/span><\/li>\n
  2. Balances in 401(k) and IRA accounts are generally, but not always, not subject to German taxation.<\/span><\/span><\/li>\n
  3. The filing deadline is six months from the date of notification\u2014failure to meet this deadline may result in late filing penalties and interest.<\/span><\/span><\/li>\n<\/ol>\n