What happens if I do not leave a will?
January 15, 2022 | 55,00 EUR | answered by Otto Dornbusch
Dear tax consultant,
My name is Renata Vöss and I am facing the decision of whether or not to leave a will. I have not yet delved into the topic of inheritance tax and am not sure what would happen if I do not leave a will.
At the moment, I do not have concrete plans for my inheritance, as I am unsure of how to best distribute my assets. However, I am concerned that my relatives could be faced with legal and tax consequences after my passing if I do not leave a will.
Therefore, I would like to know what impact it could have if I do not leave a will and how the distribution of my assets would be regulated. Are there legal regulations that automatically come into effect if there is no will? What tax aspects need to be considered and what options are available to best settle my estate?
I appreciate your expertise and thank you in advance for your support.
Sincerely,
Renata Vöss
Dear Mrs. Vöss,
Thank you for your inquiry regarding inheritance tax and wills. It is understandable that you are concerned about the legal and tax consequences that may arise if you do not leave a will. In this case, the legal regulations on inheritance, which are governed by the Civil Code (BGB), come into effect.
If you do not leave a will, the statutory succession comes into effect. This means that your assets will be distributed to your legal heirs according to the legal provisions. Your legal heirs primarily include your children, your spouse or registered partner, and/or your parents. If there are no legal heirs, the so-called "statutory succession of orders" comes into play, which takes into account the relationships of kinship.
It is important to note that the statutory succession may not always align with your personal preferences. If you wish to exclude certain individuals from inheritance or distribute assets in a targeted manner, it is advisable to establish a will or inheritance contract. With a will, you have the opportunity to regulate your estate according to your individual wishes and thus optimize the legal and tax situation for your heirs.
Regarding the tax aspects, it should be mentioned that inheritances and gifts are generally subject to inheritance tax. The amount of inheritance tax depends on various factors, such as the value of the estate, the relationship of kinship between the deceased and the heirs, and the tax exemption amount that each heir is entitled to. By addressing the issue of inheritance tax early on and potentially creating a will, tax optimizations can be made to reduce the tax burden for your heirs.
Therefore, I recommend contacting an experienced tax advisor or notary early on to discuss your individual situation and find a tailored solution for the regulation of your estate. I am happy to answer any further questions and assist you in planning your inheritance.
Best regards,
Otto Dornbusch
