Personal succession planning is one of the most important precautionary measures for investors and private savers. A well-considered succession plan not only protects the estate but also the family from unnecessary conflicts. While legal succession provides a basic structure, a personalized will allows for tailored wealth distribution. In this article, we will examine the importance of legal succession and provide practical guidelines for drafting a will to avoid family disputes.
The Role of Legal Succession in Well-Considered Succession Planning
In the careful design of a succession plan, legal succession plays an essential role, especially when no wills or other provisions have been made. These regulations underscore the importance of clear and legally recognized structures established in the German Civil Code (BGB). This system is based on the degree of kinship, meaning that children, spouses, and parents are the typical beneficiaries of a deceased’s estate.
The heart of legal succession is the concept of degree of kinship. Children and their descendants belong to the so-called first order and have priority rights to inheritance. Following them in the hierarchy are close relatives such as parents and siblings. Another central point is the inheritance rights of the spouse, which ensures that the spouse always receives a certain share of the estate, regardless of the existence of direct descendants. Particularly significant is the right to a minimum inheritance, which guarantees that close relatives cannot be completely disinherited, as they are entitled to at least the minimum portion stipulated by law.
Legal succession offers numerous advantages in practical succession planning. It ensures that, in the absence of a will, the rights of close relatives are protected. This not only provides certainty in planning but also protects delicate family ties and helps to avoid disputes over the distribution of the estate by establishing clear directives regulated by law.
However, the testator can deviate from the standard regulation through a will, thereby exercising the so-called freedom of testament, as long as the rights to a minimum share are respected. Alternatively, an inheritance contract can be established, which serves as a legally binding document to affirm the testator’s specific needs. Another option that should not be neglected is the transfer of assets during one’s lifetime to optimize potential inheritance taxes and resolve any potential conflicts in a timely manner.
Thus, legal succession constitutes the backbone of succession planning, continually charting the routes for orderly asset transfers, providing legal certainty, and serving as a protective mechanism for close relatives. At the same time, it leaves room for personalizations and individual decisions of the testator to clarify their personal intent in the distribution of inheritance.
Drafting a Will: Ensuring Peace for the Family
Drafting a will is not only a precautionary act but also an important tool for preserving family peace. By providing clear and unequivocal guidance on the distribution of the estate, it is possible to significantly reduce the potential for disputes. The process of drafting a will requires precise steps and diligent planning.
First of all, the choice between a holographic will and a notarial will determines the form of the final provision. A holographic will must be entirely handwritten by the testator and signed with their full name. Although this method is simple and cost-effective, it requires clear legibility and precise formulations. In contrast, a notarial will, drafted and authenticated under the supervision of a notary, offers greater legal certainty. Particularly in complex situations and within a large community of heirs, it is advisable to seek the expertise of a notary.
The content of a will must be detailed and formulated precisely to avoid misunderstandings. At the beginning, the provision should have a clear title, such as “Will” or “My Last Will.” It is also essential to add place and date to ensure the document’s timeliness. It is important to provide a detailed list of heirs and the exact distribution of the estate. Optionally, an executor can be appointed to oversee the execution of the will. In our digital age, digital assets, such as online accounts and access data, should not be overlooked.
Adhering to legal formalities is crucial for the validity of the will. A holographic will must indeed be entirely handwritten by the testator. The signing with first and last name is equally fundamental, and the text must be clearly legible to avoid disputes.
To protect the will from loss or unauthorized changes, it is advisable to deposit it at the probate court and to register it in the central will registry. This ensures that the document is easily retrievable and unaltered in the event of death. Moreover, it is advisable to seek consultation from a lawyer experienced in inheritance law to avoid legal mistakes and ensure the correct implementation of the last will.
Finally, it should be noted that a will can be modified or revoked at any time by the testator. A new will automatically cancels a previous one. Married individuals or those in a registered civil partnership have the option to create a joint will, which must be signed by both partners. All these measures contribute to ensuring that the last will is not only respected but also implemented smoothly, helping to quell any familial tensions at the outset.