Million inheritance in Munich: What happens when the family suddenly goes empty-handed - "Tax advantage if..."

Created: 01/14/2023 10:19 am

By: Andreas Thieme

Inheritance is often about a lot of money - in Munich sometimes millions.

© Jens Kalaene/dpa

The estate goes to the spouse or the children – this is how most people regulate their will.

But it is not always desirable for one's own family to inherit.

Anyone who decides to do so must observe a few rules, because inheritance law is complicated.

Specialist lawyer Prof. Wolfgang Böh gives important tips.

Munich - In more and more situations, inheritance is about assets being inherited by people who are not family members.

On the one hand, many people die without relatives, on the other hand, there are disputes in families and testators want to avoid the inheritance going to the family.

"In both constellations, points must be observed so that the inheritance can be processed without conflict," says specialist lawyer Prof. Dr.

Wolfgang Boeh.

He gives important tips on heritage.

▶ Tip 1: Since heirs outside the family often have no insight into the estate, it makes sense to appoint a lawyer as executor in the will so that he can handle the inheritance and act to avoid disputes.

▶ Tip 2: Heirs outside the family have a small tax allowance.

Only 20,000 euros are tax-free.

A tax advantage can be achieved if the inheritance is passed on to several people.

If you want to give the inheritance to your neighbors because they will take care of you throughout your life, then the neighbors, your wife and your children could each inherit 20,000 euros tax-free.

Munich: If friends should inherit instead of family - lawyer gives practical tips

▶ Tip 3: In any case, it makes sense to have a will advised by a lawyer, combined with advice on health care proxy.

Also included in this provision context is the examination of whether the prospective heirs commit themselves to lifetime consideration or advance payments, in particular to the care of the deceased.

▶ Tip 4: If there are still close relatives, it should be noted that they may be entitled to a compulsory portion.

This is proportionately 50 percent of the statutory right of inheritance.

Especially in the case of inheritance to outsiders, this compulsory portion claim can be significant.

This entitlement can be reduced in individual cases by the fact that it is already given to the prospective heirs while they are still alive.

▶ Tip 5: Even if there is an intact family, the issue should be taken into account when planning the succession, since it can unfortunately happen that close family members die before their death.

In the will, therefore, regulations on substitute succession in particular should not be underestimated, which regulate who becomes the heir if the actual heir ceases to exist before the succession.

These questions also apply to a lesser extent if an inheritance is to be inherited in a non-marital partnership.

This includes the same tax disadvantages and the need to actively draft a will.