Cross-Border Estate Planning

Owning property or financial assets in both Germany and the United States can create major legal and tax challenges for families. Without proper planning, heirs often face conflicting inheritance laws, probate disputes, and even double taxation — leaving your estate tied up for months or years.

Cross-border estate planning goes far beyond writing a simple will. It ensures your estate is recognized in all relevant jurisdictions and protects your family against:

• Double taxation (German inheritance tax and U.S. estate tax)
• Non-recognition of wills or trusts abroad
• Forced heirship claims under German law (Pflichtteil)
• Frozen assets such as real estate or bank accounts

Germany and the U.S. apply fundamentally different inheritance rules:

• Forced Heirship in Germany: Close relatives may be entitled to a compulsory share, regardless of your will.
• Trusts in the U.S.: Common estate planning tools in America are often not recognized under German law, leading to unexpected tax consequences.
• Probate Differences: German probate courts and U.S. state probate systems operate under different timelines, executor powers, and document requirements.

Understanding and reconciling these differences is critical to avoid disputes and ensure a smooth transition of assets.

In certain cases, different parts of the estate fall under different legal systems. For example:

A U.S. citizen living in Germany dies owning real estate in Florida and bank accounts in Munich. German law may apply to the bank accounts, while Florida probate rules govern the real estate.

This “split succession” creates complexity and often requires parallel procedures in both countries.

Not every country treats heirs equally. Key differences include:

• Germany: Compulsory share is a monetary claim by close relatives.
• France, Italy: Heirs may have a direct property interest in the estate.
• U.S.: Most states allow near-complete freedom of testation, with limited spousal protections.

These differences matter — your choice of residence or citizenship can directly impact whether forced heirship applies.

Inheritance Law Pages

A will is generally valid if it complies with the law of:

• The country where it was executed,
• The testator’s nationality, or
• The testator’s last habitual residence.

⚠️ But not all forms are accepted abroad. For example, German “Berliner Testaments” (joint wills) may be invalid in countries like Italy or Greece, as they are seen as against public policy.

For estates within the EU, the European Certificate of Succession allows heirs to prove their rights across member states without needing separate local probate proceedings. It streamlines estate administration, but it is not recognized in the U.S.

Even if one unified inheritance law applies, taxation remains separate. Germany’s inheritance tax and the U.S. estate tax can both apply, creating the risk of double taxation.

Germany has inheritance tax treaties with only a few countries — including the United States. Proper planning can make use of these treaties, exemptions, and credits to reduce or avoid double taxation.

1. Elect applicable law early
2. Keep asset inventories updated across all countries
3. Coordinate wills to ensure recognition in both Germany and the U.S.
4. Plan for taxes with advisors in both jurisdictions
5. Appoint an executor with authority and access in both countries

Cross-border estate planning is never one-size-fits-all. It requires careful alignment of laws, tax regimes, and probate procedures across borders. With the right planning, you can protect your legacy, minimize taxes, and give your heirs clarity and security.

German Attorney Nicola Casper-Hoesl provides dual-jurisdiction expertise, ensuring your estate is recognized, respected, and smoothly transferred in Germany.