Inheritance Of Inheritance Rights

[Alessandro]

Sehr geehrter Herr Haarhaus,

Let's switch to English. My husband lived in North America for many years, but retained German citizenship. In 2003, my mother-in-law died in Germany. Her estate has not yet been settled, and the heirs are my husband, myself, and our 3 children. Her will has been opened by the local Amtsgericht, fess are paid, and that process is over. Then in 2006, my husband died, leaving 2 kinds of assets in Germany: his accounts and his rights to 45% of the assets in his mother's accounts. I am his sole heir. The accounts are cash or equivalent and depot=investment accounts. The amount of the estate in Germany puts me as wife and heir below the German inheritance tax Freibetrag=exemption amount. I may have to obtain the German Erbschein and have been in contact with the German consulate about it. My question is, how do I evaluate the part of the estate that is in Germany for the application? This determines the fee I have to pay for the Erbschein. Do I ignore the fact that I will inherit part of his mother's assets through being his heir? Do I evaluate the amount of his estate that derives from her will as of the date of his death? Or do I evaluate his amount of his mother's estate as of the present time? Please feel free to reply in German, since it will take less of your valuable time. As a translator, I understand German well, am familiar with the concepts, and have Romain and Schaefer and other dictionaries. Thank you so much in advance! Nancy

[Sevastianos]

Dear Nancy,

I am happy to be a your service.

In regard to the tax situation please note that the German tax exemptions maybe much lower than usual if the deceased lived abroad for a longer time. On the other hand, it could be though that the estate is not taxable at all, but this would depend on the kind of assets. There is an international double-taxation agreement between Germany and the U.S. in regard to inheritance taxes which you ought to check.

As far as the Erbschein is concerned, please note that you do not have to go through such proceeding neccessarily but only if someone demands the presentation of the Erbschein. If banks are involved and there is a testament and/or you have gone through an American probate I would ask if they accept it.

However, if you need an Erbschein you do not have always to see the next German general counsulate. If you can argue that it is located too far away and if the legal situation is simple - as this seems to be in your case - you could apply that the court absolves you from the requirement to present an affirmation of the correctness of your statements. In that case you may apply directly to the court or take a lawyer located in Germany which both would be cheaper than the involvement of the cousulate or a German notary. As far as I understand the local court at Berlin Schoeneberg is locally competent due to your husband´s last residence abroad. I operate my law office in this district and coul assist you in that matter.

Regarding your question: You have to consider all your husband´s assets including the ones he had inherited himself. You attribute the value at the time of his death. You ought to ask the banks because they have to give notice to the tax office on this issue.

Follow up:

Please note that you have huge spousal tax exemptions only if there is an unlimited inheritance tax liability. As your husband lived lived abroad for many years(how many?) this seems not to be the case here.

For the affirmation you cannot not go to a local Canadian office. You will have to swear the oath in front of a German officer.