Lawyer Monthly - May 2024

all obligations at the time of death (Universalsukzession). In most cases there is no personal representative securing and liquidating assets and paying the decedent’s debt. The heirs, who can only act jointly, personally have the respective authority and responsibility. This requires US based heirs to cooperate with heirs in Germany. Failure to cooperate can expose them to liability, and uninformed cooperation frequently results in foreign heirs receiving less than their fair share. Since heirs become debtors of the decedent’s obligations at the time of death they may inherit debt in Germany, for which they will become personally liable with their own assets. A six-month deadline applies to heirs outside Germany who wish to disclaim the inheritance (Erbausschlagung) and avoid this consequence. At the same time, heirs in Germany and their representatives may attempt to scare U.S. based heirs without detailed knowledge of the estate into Even if the substantive law of a foreign jurisdiction applies to succession in interest, the German court will always apply German rules of civil and probate procedure. What are the most common issues regarding the settlement of estates in Germany for US-based heirs or claimants? Inheritance and succession laws in Germany are notably different from their counterparts in the United States, and so are the rules governing the settlement of estates in Germany. US-based claimants and their local attorneys are often unaware of the issues and risks this creates. Under German law heirs become owners of all assets and debtors of WWW.LAWYER-MONTHLY.COM 17 German probate courts will usually apply German law to the entire German estate if a German resident leaves assets to heirs in the United States.

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