U.S. Spouse, German Assets: Why You Can’t Rely on U.S. Rules

If you are married to a German citizen or own property together in Germany, your inheritance rights as a spouse will not be determined by U.S. law alone. German inheritance law applies to assets located in Germany — and it works very differently from what most Americans expect.

• Statutory Heir Status – The surviving spouse is always an heir, but other heirs (children, parents) share the estate.
• Impact of Marital Property Regime – In the default system (community of accrued gains – Zugewinngemeinschaft), the spouse’s statutory share increases by one-quarter.
• Fixed Quotas Without a Will – If there is no will, the spouse inherits according to fixed percentages, which can trigger disputes or tax burdens.
• Variation by Applicable Law – Couples can choose whether German or U.S. law governs succession, but this must be done explicitly.

A U.S. trust that benefits the surviving spouse is not automatically a recognized substitute for a will or inheritance contract in Germany. Trusts are not clearly regulated under German law and are often treated as if the assets still belong to the deceased — meaning probate and inheritance tax still apply.

Bottom line: If you want to protect your spouse in Germany, you must plan under German legal instruments.

• Berlin Will – Mutual designation of each other as sole heirs; simple, but may trigger compulsory share claims by children.
• Compulsory Share Rights – Children are entitled to a fixed percentage, even if excluded in the will.
• Choice of Law – Explicitly decide whether German or U.S. law governs your estate.
• Tax Planning – Spouses benefit from a €500,000 inheritance tax exemption in Germany. Further exemptions are possible.
• Successor After Second Death – Define who inherits after both spouses pass away.
• Executor Appointment – Strongly advised for international estates to ensure smooth administration.

In the U.S., a living trust is often used to avoid probate and protect the surviving spouse. In Germany, however, trusts have no clear statutory framework. Courts may treat trust assets as part of the estate, meaning:

• The surviving spouse may not automatically control the assets.
• German inheritance tax could apply immediately.
• Recognition depends on the trust’s structure and whether German formalities were met.

• Relying on a U.S. Trust Alone – German law does not automatically recognize U.S. trusts; assets may still need German probate.
• Not Checking the Marital Property Regime – Your inheritance share depends heavily on whether you have community of accrued gains or another system.
• Overlooking Compulsory Share Rights – Children can demand part of the estate immediately, even if the spouse is named sole heir.
• Ignoring Applicable Law Choice – Without an explicit choice, German law may apply even if you live in the U.S.
• Failing to Optimize for Taxes – Poor planning can trigger unnecessary inheritance tax.
• Delaying Legal Review – Cross-border issues get harder and costlier to fix after death.

Inheritance Law Pages

✅ Avoid relying solely on U.S. trusts for spousal protection.
✅ Confirm your marital property regime and understand its effect on inheritance shares.
✅ Claim available tax exemptions.
✅ Name an executor for international estates.
✅ Seek professional legal advice for both jurisdictions.

Spousal inheritance in Germany is full of traps for the unprepared — especially for U.S. citizens married to Germans or owning assets in Germany. Proper planning ensures that your spouse is protected, disputes are avoided, and taxes are minimized.

German Attorney Nicola Casper-Hoesl helps international couples create legally sound wills, inheritance contracts, and tax strategies that work in both Germany and the U.S. — protecting your marriage, your assets, and your legacy.