Lawyer Monthly - May 2024

disinherited spouses and descendants can usually claim a forced share (Pflichtteil) against the heirs for payment of one-half of the value of their intestate share. E.g. if a disowned child would receive a 1/3 share but for a disowning provision in a will, she can still claim payment of 1/6 of the value of the estate. The value of gifts made by the decedent in the last ten years before the passing will be added to the date of death value of the estate for purposes of calculating the forced share. Forced share claimants are entitled to receive an inventory of the estate, which must include gifts made by the decedent and an appraisal of assets without a face value. Forced share claims to compel an inventory and appraisal, and payment of the resulting amount, are frequently the subject of estate litigation in Germany. The legal concept of trusts is not known to German law, which does not allow legal ownership on the one hand and beneficial ownership on the other hand to be separated. Consequently, assets in disclaiming a valuable inheritance suggesting that they will inherit debt. Therefore, it is critical for U.S. based heirs and attorneys to investigate an estate in Germany promptly in order to make an informed decision regarding the acceptance or disclaimer of an inheritance. The nomination of an executor (Testamentsvollstrecker) in a will, with authority to settle the estate, is the exception, not the rule in Germany. Even if there is an executor the settlement of the estate is not court supervised as we know it from probate proceedings in the United States. Unless a will provides for an executor no personal representative will be appointed. It is, therefore, critical for U.S.-based heirs and their attorneys to play a more active role controlling and holding the executor accountable. Spouses and descendants (and parents in the absence of descendants) can be disinherited entirely only under rare circumstances. Under German law, 18 LAWYER MONTHLY MAY 2024 Under German law, disinherited spouses and descendants can usually claim a forced share (Pflichtteil) against the heirs for payment of one-half of the value of their intestate share.

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