Estate planning is like a game of chess, where every move must be carefully considered. For investors and private savers, it is essential to understand the regulatory framework to optimally protect and pass on their assets. From legal succession to wills and inheritance contracts: this article illustrates how to formulate the last will in a legally valid manner and how to avoid family conflicts. Each chapter provides insights on organizing succession in a way that respects individual wishes and ensures that investments remain in good hands.
Legal Succession: The Key to Fair Asset Distribution in the Family
In German inheritance law, legal succession is more than just a standard rule in the absence of specific testamentary provisions. It forms the basis for a fair and family-friendly distribution of the deceased’s assets. The succession is governed by an elaborate system that divides heirs into different classes and ensures that the next generation receives its fair share.
The hierarchical system begins with the so-called first order, which consists of the direct descendants of the deceased, such as children, grandchildren, and great-grandchildren. This position emphasizes the importance of family continuity and protects the financial interests of the immediate family.
If there are no descendants, the second order applies, which includes the deceased’s parents and their descendants. In the absence of heirs in the first two groups, succession passes to the third order, which includes grandparents and their descendants. This reflects family ties and the line of descent, which is considered a central element of succession.
Particular attention must be given to the rights of the spouse. The spouse enjoys an independent inheritance right, which significantly affects the division of the inheritance. The legal inheritance right of the spouse can amount to up to a quarter or even half of the estate and is closely tied to the existence of other entitled relatives.
Another fundamental aspect is the right to the mandatory share, which favors close relatives such as children, spouses, and parents, protecting them from complete exclusion. This right guarantees them a share equal to half of their legal inheritance, even in the presence of contrary testamentary provisions.
Legal succession is a solid support for testators who have not established a clear estate regulation. It offers a structured approach based on family relationships and assigns the transmission of assets in accordance with generally recognized family values. In practice, it minimizes potential conflicts and allows, through wills or further developed inheritance contracts, the integration of personal wishes and specific needs for customized estate planning.
Wills and Inheritance Contracts as Guidance for Harmonious Succession Regulation
In a world where the structuring of succession extends beyond one’s lifetime, wills and inheritance contracts offer valuable opportunities to precisely orient succession and prevent family conflicts. These documents are more than mere legal formalities; they are the expression of the last wishes and offer the possibility to individually regulate the succession.
A wil is the simplest form for ordering succession according to one’s wishes. Its flexibility allows the testator to make changes as long as they have the capacity to make a will. Its formal simplicity also characterizes its accessibility, as it can be drafted without the assistance of a notary. However, a poorly formulated will carries the risk of misunderstandings or conflicts among the survivors. Therefore, clarity in the provisions is essential.
The inheritance contract, on the other hand, serves as a more binding instrument, offering greater legal security through notarization. It is characterized by its obligation, as all changes can only take place with the agreement of the contracting parties. This makes it particularly valuable in business succession, where clear agreements are necessary. However, the rigidity of the inheritance contract requires that all eventualities be well considered, making it a more complex and costly process.
A joint will, often chosen by couples, constitutes a common legal provision. It offers protection for the surviving spouse and clearly regulates succession, with the final heirs usually being the children. This construction, as seen in the famous Berlin will, guarantees clear asset regulations, but leaves little room for adjustments after the death of a partner unless expressly provided for.
Legal succession applies when none of these provisions have been made. It offers a standardized distribution based on the degree of kinship, but does not always favor the individual wishes of the deceased. To avoid misunderstandings and uncertainties, it is advisable to timely create a will or inheritance contract. Regular checks and adjustments, as well as clear instructions, ensure not only the implementation of the last will but also family peace. It is important that these measures are always accompanied by expert advice to ensure legal security and to take advantage of timely tax benefits.