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.

Protect Your Spouse. Protect Your Legacy.

I help U.S.-German couples create cross-border estate plans that work in both countries — secure, fair, and tax-efficient.

Under German law, spouses are statutory heirs — but not automatically the sole heirs. In blended families or without a will, your inheritance share may be smaller than you think, children may have immediate claims, and a U.S. trust intended to protect your spouse could be ignored entirely in Germany. Proper cross-border estate planning is essential to avoid costly surprises.

What Does German Spousal Inheritance Law Regulate?

• 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 – A choice of law is possible, but narrower than most people assume: you may only choose the law of a country whose nationality you hold, and the choice must be made expressly or follow clearly from the terms of the will.

No Trust Substitute for Spouses in Germany

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.

Will Planning for U.S.-German Couples

• 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 – You may elect the law of a country of which you are a national. A German national who is not also a U.S. citizen cannot elect U.S. law; a U.S. citizen living in Germany can elect the law of their U.S. state. Dual nationals may choose either.
• Tax Planning – German law grants a surviving spouse a personal exemption of €500,000 — but that full figure applies only where the estate is subject to unlimited German inheritance tax liability. If neither spouse lives in Germany and only German assets pass, the exemption is reduced in proportion to the German share of the total transfer, and the supplementary pension exemption is not available at all. The German–U.S. estate tax treaty can restore part of that benefit and prevent double taxation, but only if it is claimed correctly and on time.
• Successor After Second Death – Define who inherits after both spouses pass away.
• Executor Appointment – Strongly advised for international estates to ensure smooth administration.

Special Note: U.S. Trusts and German Law

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.

Mistakes to Avoid in U.S.-German Spousal Inheritance

• 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.

Practical Tips for U.S.-German Couples

✅ 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.

Frequently Asked Questions (FAQs)

Conclusion

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 S. 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.

Important notice regarding U.S. law: Nicola S. Casper-Hoesl is admitted to practice law in Germany (Rechtsanwältin, Rechtsanwaltskammer München) and registered as a Foreign Legal Consultant in Colorado (Reg. No. 57176). She is not admitted to the Colorado bar or the bar of any other U.S. jurisdiction and does not advise on U.S. federal or state law, including U.S. tax law. Where a matter involves U.S. legal or tax questions, these are coordinated with U.S.-licensed attorneys and CPAs. The information on this page is general information, not legal advice.