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When should one deal with inheritance?
As early as possible, advises a lawyer.
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Photo: Francesco Carta / Moment RF / Getty Images
I'm wiping through the rest of the gravy on my plate with a piece of dumpling when my dad says, "We have to sort this out now before we die."
He speaks of my great-grandparents' house.
The house that now belongs to him, a tenement house with four apartments, in which he and I lived during our studies and which is more than 600 kilometers away from where I currently live.
The house that my brother and I will inherit one day - but only in 20 years, please.
It's Boxing Day, I was just wondering whether to look at "Love Actually" or "Harry Potter" after dinner, and suddenly we're talking about the death of my parents.
I choke the dumpling down and sit up straight.
I am 27 years old, my parents are in their early 60s and healthy.
Aren't we too young to talk about wills and inheritance?
A part of me - the part that first dials mom and dad's landline number after a harmless rear-end collision - is reluctant to believe that at some point they will no longer be there.
Another part of course knows that it will come that way.
And he definitely doesn't want to argue about an inheritance.
Heritage - an unpleasant topic for many Germans
In Germany, up to 400 billion euros are inherited or given away every year, estimates a study by the German Institute for Economic Research on behalf of the Hans Böckler Foundation.
The sum is huge - but not all people who want to bequeath something at some point have already made a will.
In general, 60 percent of Germans consider inheritance to be a topic that is reluctant to deal with.
This was the result of a survey by the Allensbach Institute for Demoscopy on behalf of Deutsche Bank.
It's no different with me.
And yet my father's sentence has never gotten out of my head since Christmas dinner.
Do I really have to deal with my legacy now?
How does Erben actually work?
"The younger you are, the better you can solve it with inheritance"
Melina Maria Beu, specialist lawyer for inheritance law
I do some research on the internet and finally call Melina Maria Beu, specialist lawyer for inheritance law.
She tells me that my parents chose the moment for our conversation very well.
"The younger you are, the better you can solve it with inheritance."
Because whoever inherits something in Germany has to pay tax - but only if the inheritance exceeds a certain tax exemption.
In order to stay below this tax allowance, you can transfer part of your assets to your partner or children before you die, says Beu.
In principle, the same taxes apply to such a donation between the living, but the same tax exemptions apply - for a period of ten years.
So if my father gave us a part of the house 20 years before his death, the value of which does not exceed the tax allowance, no taxes would be incurred, explains Beu.
Ten years later he could repeat that.
In this way, he would gradually reduce the value of the actual inheritance - and with it the amount of inheritance tax.
So if my father wants to talk to my brother and me about the house right now, he is primarily helping us.
Apart from tax advantages, such a conversation is also important because you never know when you will die, says Beu.
There are also family constellations that complicate inheritance, such as blended families.
They are not provided for in statutory inheritance law.
If there was no will, biological children from previous relationships would automatically inherit when the father or mother died - but not stepchildren.
For example, if the father owned the house in which he lived with his second wife and their children, after his death only the biological children from his first relationship would be co-owners - and could have the house auctioned.
My parents have been married for 30 years and only got me and my brother.
Do we still have to talk about her will now?
"Many postpone until the end to even deal with inheritance"
Melina Maria Beu, specialist lawyer for inheritance law
Basically, everyone with wealth should think about how they want to regulate their inheritance, says Beu.
In a will you can describe in your own words what you want in the event of death.
For example, the spouse could inherit everything first - or the best friend could inherit the jewelry and the godson could inherit the car.
I can now understand why my parents listened to an entire lecture on the subject of inheritance - they also told us that at Christmas dinner.
That they are already dealing with it and also talking to me and my brother about it is good, but unusual, says Beu.
Her clients are usually in their 70s or even older.
"Many postpone until the end to even deal with inheritance."
How do you inherit correctly?
I now understand that this is not a good idea.
But how do I inherit correctly?
First you should get an overview of the wealth that could be inherited, says Beu.
Then you could get advice from a lawyer on drawing up the will;
an initial consultation costs a maximum of 250 euros.
Even a will on a beer mat is valid as long as it is handwritten with the place, date and signature, says Beu.
However, she recommends depositing the will with the probate court, according to the German Forum for Inheritance Law it costs 75 euros.
This is how you make sure that it doesn't get away - for example because someone finds it who doesn't agree.
In order to prevent disputes among the heirs, you can also draw up an inheritance contract, says Beu.
Unlike a will, this is a contract that the testator and heir sign together and which is binding even after death.
This could, for example, include inheritance requirements.
Or we children could promise to forego our compulsory portion when one parent dies and let the other parent inherit everything first.
You can also make a corresponding contract with a donation like the one my father is planning, says Beu.
How to clean up the attic
After 45 minutes I hang up and take a deep breath.
So we could conclude an inheritance contract and have part of the property given as a gift before my parents died.
I feel myself becoming calmer.
It feels like I've finally set out to clean up the attic.
Things packed in boxes, labeled and carefully stowed away.
My father is right, we have to sort this out while my parents are still alive.
It has nothing to do with the fact that they will soon die - it has to do with the fact that we can save money and not have to argue later.
My parents want to look for a lawyer now.
And maybe we'll have everything sorted out by the next Christmas dinner.
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