Last Will in Germany: What U.S. Citizens Must Know

If you are a U.S. citizen with property, heirs, or investments in Germany, your American estate plan may not work as intended. German inheritance law applies its own strict rules for wills, heirs, and compulsory shares. Trusts—commonly used in the U.S.—are not automatically recognized. Without a German-compatible will, you risk disputes, delays, and unexpected tax burdens that could undermine your entire estate plan.

Without a will, German intestate succession applies automatically. This means:

• Spouses and children inherit fixed quotas, not necessarily what you intended.
• Compulsory share (Pflichtteil) rights may override your wishes.
• Complex family structures (blended families, dual citizenship, business assets) require precise planning.
• Only coordinated cross-border wills allow tax optimization under both German inheritance tax and U.S. estate tax rules.

German law distinguishes between two main instruments:

• Testament (Will): A unilateral declaration, revocable at any time. Allows full flexibility but may trigger disputes if unclear.
• Inheritance Contract (Erbvertrag): A binding agreement, often between spouses or business partners. Provides certainty but limits later changes. Common in succession planning for family enterprises.

Choosing the right instrument is crucial—especially for U.S.–German families who need both flexibility and enforceability.

U.S. living trusts, widely used to avoid probate, have no equivalent in German law. German courts may treat trust assets as if they still belong to the deceased, meaning:

• Assets may still go through German probate.
• Inheritance tax may apply immediately.
• Recognition depends on court interpretation, creating uncertainty.

Safer alternatives include German wills, inheritance contracts, and targeted legacies (Vermächtnisse).

German law recognizes two main will forms:

• Holographic Will: Must be fully handwritten, dated, and signed. Cheap and private, but prone to errors and disputes.
• Notarial Will: Drafted and certified before a German notary. Provides maximum legal certainty, easier probate, and reduced litigation risk.

Couples may also use a joint will (Berliner Testament), where each spouse names the other as sole heir and children as final heirs. This structure secures the surviving spouse but can trigger compulsory share claims from children after the first death.

Cross-border wills face unique risks:

• Ambiguous wording may be interpreted differently under German vs. U.S. law.
• Legal terms like “heir” or “beneficiary” have different meanings in each system.
• Poor translations create costly misunderstandings.
• Without a clear choice-of-law clause, German law may apply even if you live abroad.

Tip: Always have bilingual wills reviewed by professionals in both jurisdictions.

Inheritance Law Pages

• Choice of Law: Under the EU Succession Regulation, you may choose German or U.S. law to govern your estate—but you must do so explicitly in your will.
• Recognition of U.S. Wills: They are valid in Germany only if they meet formal requirements.
• Compulsory Share Rights: Spouses, children, and sometimes parents can claim part of the estate regardless of your wishes.
• Executor Appointment: Highly recommended in international estates to ensure smooth cross-border administration.
• Tax Planning: Spouses enjoy a €500,000 tax exemption, but U.S. estate tax must also be considered to avoid double taxation.

• Form errors can render the entire will invalid.
• Contradictory clauses create litigation.
• Failure to coordinate with U.S. estate planning may result in double taxation.
• Ignoring compulsory share rights leads to lawsuits.

1. Always include a choice-of-law clause to avoid uncertainty.
2. Use notarial wills for maximum legal security.
3. Anticipate compulsory share claims and plan liquidity.
4. Ensure bilingual precision—poor translations cause costly disputes.
5. Coordinate with U.S. and German tax law to minimize exposure.

A cross-border will is not a simple document—it is the foundation of secure estate planning for U.S. citizens with German assets. Only a carefully drafted, bilingual, and tax-optimized will ensures that your wishes are respected, your heirs avoid disputes, and your legacy is preserved across borders.

German Attorney Nicola Casper-Hoesl drafts, reviews, and aligns wills and inheritance contracts for U.S.–German families—clear, enforceable, and tax-efficient on both sides of the Atlantic.