Community of Heirs (Erbengemeinschaft) in Germany – Your Rights, Obligations and Exit Strategies

Inheriting together with siblings, distant relatives, or even people you barely know can be both a blessing and a burden. Under German law, when multiple people inherit, they automatically form a community of heirs (Erbengemeinschaft). This legal construct is one of the most conflict-prone areas of inheritance law: it ties heirs together as co-owners of the entire estate until a final division takes place. While it can preserve assets temporarily, it also creates stalemates, disputes, and legal risks—especially when heirs are scattered between Germany and the U.S.

A community of heirs arises automatically upon succession. All assets and liabilities form one undivided estate jointly owned by the heirs. Unlike a partnership, it has no independent legal personality: each heir represents both themselves and the others. Until division, every decision concerning the estate must be taken collectively, which makes cooperation indispensable. The structure is inherently temporary—its purpose is to manage the estate until distribution, not to last indefinitely.

The management of an Erbengemeinschaft depends on the type of action:

• Ordinary administration: Everyday matters, such as paying utility bills, can be decided by majority vote, weighted by inheritance shares.
• Extraordinary transactions: Measures such as selling real estate or taking out loans require unanimous consent.
• Information rights: Each heir has a right to inspect estate assets, documents, and debts.
• Blockades: If heirs cannot agree, the probate court may appoint an estate administrator (Nachlassverwalter) to act in the best interests of all.

While no heir may sell individual estate assets on their own, each heir may sell their entire inheritance share. Such transfers must be notarized. Co-heirs have a statutory right of first refusal to prevent outsiders from entering the community. For U.S.-based heirs, selling a share can be an effective exit strategy, though it requires careful valuation and negotiation.

All co-heirs are jointly liable for the debts of the estate. This means creditors may claim the full debt from one heir, who must then seek internal contribution from the others. To protect personal assets, heirs can:

• Invoke the three-month defense, delaying personal liability shortly after succession.
• Apply for limitation of liability to the estate (Dürftigkeitseinrede).
• Initiate estate insolvency proceedings if debts exceed assets.

Any heir has the right to demand division of the estate. This can occur:

• Amicably: Through a notarized partition agreement, distributing assets by consensus.
• Judicially: Through a partition lawsuit, which may end in forced division.
• Partition sale: As a last resort, real estate may be sold via public auction—often resulting in lower prices and additional costs.

Once division is completed, the community of heirs ceases to exist and each heir owns their share independently.

German law requires certain equalization measures within heir communities:

• Advancements and gifts: Lifetime transfers by the deceased to children may be offset against inheritance shares.
• Caregiving contributions: If one heir cared significantly for the deceased, they may be entitled to compensation.
• Partition directives: A testator may issue binding instructions on how assets are to be divided, which heirs must follow unless all agree otherwise.

• Disputes about whether to sell family real estate.
• Blocked bank accounts due to lack of signatures.
• Mistrust between heirs regarding disclosure of assets and debts.
• Co-heirs living abroad unable to act promptly.
• Unequal expectations—some want to keep assets, others want immediate liquidity.

Without clear agreements, these conflicts escalate quickly into litigation.

1. Request a full inventory of assets and debts early to ensure transparency.
2. Define internal rules in writing—set thresholds for expenses and powers of attorney.
3. Protect yourself against liability—consider invoking liability limitations.
4. Aim for a notarized partition plan rather than a forced sale.
5. Use mediation or legal negotiation before resorting to lawsuits.

A community of heirs is one of the most challenging aspects of German inheritance law. While it arises automatically, it rarely reflects the heirs’ true wishes. For U.S.-based heirs, distance, language barriers, and conflicting interests can make matters even more complicated. The key is to know your rights, act early, and secure professional guidance to protect your inheritance and exit the community on the best possible terms.

German Attorney Nicola Casper-Hoesl assists international heirs in managing, dissolving, or exiting communities of heirs—strategically, efficiently, and across borders.