Germany is home to roughly 150,000 Americans — military families at US bases, corporate expatriates in Frankfurt and Munich, academics in Berlin and Hamburg, and tech workers in the growing startup scene. Germany offers excellent quality of life, strong rule of law, and a well-functioning legal system. But for Americans, German estate planning is genuinely complex: Germany has forced heirship rules, a significant inheritance tax with relatively modest exemptions for non-German family members, and a unique interaction with the US-Germany estate tax treaty.
This guide explains the German Pflichtteil (forced heir share), the Berliner Testament for couples, the Brussels IV election for US nationals, German inheritance tax (Erbschaftsteuer), and the US-Germany estate tax treaty.
German succession law is governed by the Bürgerliches Gesetzbuch (BGB — German Civil Code). By default, the law applicable to your estate is determined by your habitual residence. For Americans habitually resident in Germany, German law applies — including German forced heirship rules — unless a Brussels IV election is made.
German intestacy rules (gesetzliche Erbfolge) follow a strict order of Erbordnungen (orders of inheritance). The first order consists of descendants (children, grandchildren); the second order consists of parents and siblings; and so on. A surviving spouse receives a fixed share in addition to the shares of the first or second order — typically one-quarter to one-half depending on the marital property regime.
Even with a will, certain close relatives have a legally enforceable claim to a minimum share of the estate — the Pflichtteil (mandatory portion). Those entitled to the Pflichtteil include:
The Pflichtteil is half of the statutory intestacy share. For example, if a child would receive 50% under intestacy, their Pflichtteil is 25% of the estate. Critically, the Pflichtteil is a monetary claim — not a right to specific assets. The heir can demand payment in cash from the estate, even if this requires selling assets the testator wanted to keep together.
You can exclude your children from inheriting under your will, but you cannot prevent them from claiming their Pflichtteil. The only way to eliminate a Pflichtteil claim is a formal Pflichtteilsverzicht (waiver agreement), signed before a German notary, in which the entitled person voluntarily waives their claim — usually in exchange for a lifetime gift or other consideration.
ExpatLegalWills helps Americans in Germany create a US-law will that works as the foundation of their cross-border estate plan. Start online today.
Create Your Expat Will at ExpatLegalWills →Under Brussels IV, a US national habitually resident in Germany can elect that US law governs their entire estate. Since US law (under any state) has no forced heirship rules comparable to the Pflichtteil, a Brussels IV election should theoretically allow Americans to disinherit their children in Germany.
However, German courts may treat the Pflichtteil as an Eingriffsnorm (overriding mandatory provision) that applies regardless of the elected law. German courts have issued varying judgments on this question. The safest approach is to assume the Pflichtteil may be claimable even with a Brussels IV election, and to consult a German-qualified attorney if you need certainty.
The Berliner Testament is a popular German will form for married couples. In a Berliner Testament:
The Berliner Testament is binding on both parties — once made, neither spouse can unilaterally change or revoke the will without the other's consent (unless specific provisions allow for this). For Americans married to German nationals or living in Germany, the Berliner Testament may be an attractive structure, but it has German inheritance tax implications — the children's Pflichtteil claim matures on first death, and they may demand payment then.
German inheritance tax applies to inheritances received by German residents and to assets with German situs. The key features:
Tax rates range from 7% (small amounts to close family) to 50% (large amounts to unrelated parties). For a child receiving €1 million (after the €400,000 exemption), the taxable amount is €600,000 — taxed at 15% = €90,000 in German inheritance tax.
The United States and Germany have an Estate and Gift Tax Treaty (most recently amended in 1998). Key benefits:
The treaty is genuinely beneficial for US-German couples and estates, but its application requires careful analysis by a cross-border tax specialist.
ExpatLegalWills helps Americans in Germany create a US-law will covering their worldwide estate — the essential first step before tackling German-specific issues.
Start Your Expat Will at ExpatLegalWills →