Germany.

Germany operates the foundational civil-law inheritance system under the Bürgerliches Gesetzbuch (BGB, 1900). Compulsory heirship (Pflichtteil) under §§ 2303–2338 BGB protects descendants, parents, and the surviving spouse with a monetary claim equal to half their statutory intestate share. The Erbschaftsteuergesetz (ErbStG) imposes inheritance and gift tax at progressive rates from 7% to 50%, with three tax classes (Steuerklassen I, II, III) determined by the relationship between transferor and transferee.

The Verschonungsabschlag regime under §§ 13a and 13b ErbStG provides up to 100% relief for qualifying business property (Betriebsvermögen), subject to compliance with retention and wage-sum tests. Section 28a ErbStG provides relief for very large business transfers above €26 million through a verification process. The Berliner Testament (joint will between spouses) remains a popular but tax-inefficient succession instrument, often triggering Erbschaftsteuer twice on the same wealth across two deaths.

The memoranda in this series address the recurring fact patterns in German cross-border estate planning — including Pflichtteil tension with Canadian and US testamentary freedom, the US–Germany 1980/1998 Estate and Gift Tax Treaty’s prorated unified credit mechanism, the Erbschein evidentiary regime versus common-law probate, the absence of a Canada–Germany estate treaty, the EU Succession Regulation 650/2012 framework, and the Familienstiftung (family foundation) regime as alternative to common-law trusts.