In most cases, those who have been disinherited are not left empty-handed. The law guarantees close relatives a compulsory share – a financial claim against the heirs. However, this claim does not pay itself out automatically. There are often many months between the will being opened and the day the money actually arrives; in cases involving property in the estate or feuding families, it can even take years. And this period is rarely uneventful. People fight over information, argue about the value of the family home, and at some point, it’s only the solicitors who are still in contact.
At this point, there are two paths to take. You can pursue your claim – in court if necessary – and fight for every euro. Or you can draw a line under it, sell the claim and leave the dispute to someone who isn’t personally affected by it. This article focuses on the second option. You’ll find out what happens legally when you sell, what a buyer pays and why they pay less than the full value, what the process involves, and how to tell whether selling is the right option for your situation or whether one of the alternatives is a better deal.
Key points at a glance
- The compulsory share is a purely monetary claim against the heirs. It arises upon death and may be sold from that moment onwards, as the law expressly declares it to be transferable (Section 2317 of the German Civil Code (BGB)).
- The sale takes place by way of assignment, i.e. by transferring the claim to the buyer. A notary is not required for this, unlike in the case of the sale of a share of an inheritance.
- The purchase price is below the face value of the claim. In return, you will receive the money promptly, bear no financial risk and will not have to deal with the heirs any further.
- Once the sale has taken place, enforcement is the sole responsibility of the buyer, including all costs and the full litigation risk.
- Anyone who wants to secure the highest possible amount and has the time to spare is generally better off pursuing enforcement at their own expense or through litigation funding.
- The claim is generally time-barred three years after the end of the year in which you became aware of the inheritance and your disinheritance. If you wait too long, you will find yourself in a weak negotiating position.
- In principle, the future statutory share cannot be sold whilst the testator is still alive.
What is being sold is a monetary claim, not a share of the estate
To understand what is actually changing hands in this transaction, one must dispel a common misconception. Anyone who is entitled only to the compulsory share does not own any part of the estate. They do not own a single part of the house or any investment portfolio, and they have no say in how the estate is distributed. Instead, they have something else: a quantifiable monetary claim against the heirs amounting to half of their statutory share of the estate. The beneficiary is therefore simply a creditor, and the heirs are their debtors.
That is precisely what makes the sale so straightforward. A monetary claim is an asset like any other and can be transferred. Companies do this all the time when they sell outstanding invoices to a bank in order to gain immediate liquidity. The same principle applies to the compulsory share. The law even expressly states that this entitlement is inheritable and transferable (Section 2317(2) of the German Civil Code (BGB)). It is transferred by way of assignment (Section 398 of the German Civil Code (BGB)). Through this, the purchaser takes your place as the new creditor, and the heirs henceforth owe the money to them. The heirs do not need to give their consent to this; they do not even need to be asked in advance.
The law does not stipulate any specific form for this sale. An appointment with a notary is therefore not required, which saves time and money. Reputable buyers nevertheless always set out the purchase and assignment agreement in writing, and you should insist on this too, as without a written document it will not be possible to prove either the scope or the price at a later date.
However, only those who are actually entitled to a compulsory share may sell. The only persons entitled to a compulsory share are the deceased’s children; in their place, should they be absent, the grandchildren; furthermore, the spouse or registered partner; and the parents, the latter only if the deceased leaves no descendants. Siblings, nieces and nephews are never included. Furthermore, the person must have been excluded from the succession by will or inheritance contract, or must have received less than their compulsory portion. And the death must have occurred, as the entitlement only arises upon death. Any agreement concerning the compulsory share of the estate of a person who is still alive is void (Section 311b(4) of the German Civil Code (BGB)). The law permits such an agreement only amongst future statutory heirs – for example, amongst siblings whilst their parents are still alive – and in such cases it must be drawn up by a notary (Section 311b(5) of the German Civil Code (BGB)).
Statutory share or inheritance share: two different sales
Many texts on this subject confuse two separate transactions that have little to do with one another in legal terms. Anyone named as a co-heir in a will who wishes to withdraw from the community of heirs is selling their share of the inheritance. This contract must be notarised (Section 2371 of the German Civil Code (BGB)); the remaining co-heirs may exercise a statutory right of pre-emption within two months (Section 2034 BGB), and the sale does not relieve the seller of liability to creditors for the debts of the estate.
When it comes to the compulsory share, things are simpler. Anyone who has been disinherited was never part of the community of heirs and is not liable for the debts of the estate. They are selling a pure monetary claim, without any formal requirements, without pre-emption rights and without having to renounce any rights. If you are unsure which situation applies to you, a simple check will help. If your name appears in the will as an heir, it concerns a share of the estate. If you have been overlooked or expressly excluded, it concerns the statutory share, and this article deals solely with that.
What your claim is worth and what a buyer would pay for it
Every negotiation begins with the nominal value, that is, the amount the heirs actually owe. This is calculated on the basis of two factors. The first is your share, which is half of the statutory inheritance share. The second is the value of the estate on the date of death, after deduction of liabilities (Section 2311 of the German Civil Code (BGB)). An example will make the calculation clearer. A widowed father leaves behind two children and assets worth 400,000 euros after debts. He names his daughter as sole heir, meaning his son is disinherited. Without a will, the son would have inherited half; his compulsory portion is therefore a quarter, or 100,000 euros. If the deceased made substantial gifts in the last ten years, a supplementary claim may apply, which further increases the amount (Section 2325 of the German Civil Code (BGB)).
A buyer pays less than 100,000 euros for this claim, and it is only fair to state this clearly. The discount is not a ploy, but the price the buyer pays for what they are taking on. From the moment the contract is signed, the buyer bears all the costs of enforcement, the risk that the estate may be smaller than anticipated, the risk that the heirs may be unable to pay, and the certainty of having to wait for their money until the claim has been recovered. All of this is shifted from your shoulders to theirs with the signing of the contract.
The size of the discount depends less on negotiating skills than on the quality of the information. The clearer the circumstances, the better the price. A clear will, verifiable bank balances, an extract from the land register and realistic figures for the property can be assessed; vague assumptions about alleged assets cannot. This is the most important lever that sellers themselves have at their disposal. As a beneficiary entitled to a compulsory share, you can request information from the heirs regarding the contents of the estate – in the form of a notarised inventory of the estate, if desired – and demand a valuation of individual items, such as a valuation report for the property. The costs of this are borne by the estate (Section 2314 of the German Civil Code (BGB)). Anyone who exercises this right before seeking offers will be negotiating with figures rather than estimates. Conversely, unresolved family circumstances, assets held abroad, valuations likely to be disputed and an approaching limitation period tend to drive prices down, as the limitation period continues to run for the buyer after the sale.
This is how the sale works
The process from initial contact to payment almost always follows the same pattern, and it is shorter than many people expect.
- Clarify authorisation and quota. The starting point is the will and the family structure. These determine whether a claim exists and, if so, the proportion of the estate to which it relates.
- Estimate the value of the estate. Now all the available documents are being collated, ranging from bank statements and the land registry extract to the estate inventory. Any gaps in this picture are factored into the price as a safety margin.
- Review the offer and sign the contract. The purchase and assignment agreement sets out the purchase price and when it is due, the exact scope of the claims being sold, and the representations and warranties you are making. Please ensure that claims for a supplementary compulsory share are also expressly included, as they often represent a significant proportion of the value.
- Payment and handover. Once the contract has been signed, the purchase price is paid, often within a few weeks of the initial enquiry, depending on the circumstances. The buyer notifies the heirs of the assignment and, from that point onwards, enforces the claim in their own name and on their own behalf. You are no longer involved as a party to the proceedings; at most, you may be called upon to give evidence as a witness in any subsequent legal proceedings.
However, you are not entirely free of obligations. Like any seller, you are responsible for ensuring that the item sold belongs to you and is free from hidden defects. In other words, the claim must be valid and must not have already been assigned, waived or excluded by a notarised waiver, and the details you provide regarding the case must be accurate. You are not, however, required to guarantee that the heirs will ultimately be able to pay. This risk falls to the buyer once the contract is signed.
When a swift conclusion is more important than that final one per cent
Sometimes, drawing a clear line under the matter is worth more than the highest possible sum. In such situations, Erbfinanz offers to purchase your claim. You can sell your statutory share to Erbfinanz and receive payment promptly, without having to settle the dispute with the heirs yourself. What happens to the claim afterwards is our concern.
We’ll discuss whether this approach is right for your situation during a no-obligation enquiry. It’s free, discreet and takes just a few minutes.
'Definitive' means 'definitive'
Once the asset has been transferred, the claim has been removed from your estate – and this applies both ways. If the estate later turns out to be significantly larger – because a securities account is discovered or the house fetches a higher price than expected – the buyer stands to benefit. There is no legal entitlement to a top-up payment. Anyone wishing to safeguard against this scenario can try to agree in the contract on a subsequent share of any substantial additional proceeds. The same applies in reverse. If the realisation of the estate yields less than hoped for, this is no longer your concern, provided your representations remain accurate.
For some, this finality is the real drawback of the sale. For many others, it is its very purpose. A dispute over a compulsory share is rarely just an item on a balance sheet. It demands attention for years on end, it keeps you in contact with people with whom you have cut ties, and it sits uninvited at the table during family gatherings. The sale replaces this open-ended situation with a figure and a date. Whether this trade-off works out for you cannot be said in general terms, but it is a legitimate calculation in which time and peace of mind are genuine factors.
Sell, implement it yourself or arrange financing
Selling is one of three ways to turn a claim into cash, and it is not the right option for everyone. It is therefore important to take a dispassionate look at all three before signing anything.
The traditional approach is to pursue the claim at one’s own expense. A solicitor requests information and payment from the heirs; if necessary, legal proceedings follow. If the claim is successful, the full amount is recovered, reduced only by one’s own costs, insofar as these are not borne by the other party. To achieve this, you must advance the solicitor’s and expert’s fees, bear the financial risk should you lose the case, and remain personally involved in the dispute for its entire duration. Incidentally, many of these proceedings end in a settlement with the heirs – that is, a lump-sum payment in exchange for a waiver of their claims. From a financial perspective, this is also a sale – albeit to the other party themselves.
The second option is litigation funding. In this case, the claim remains yours, but a litigation funder assumes the full cost risk of enforcing it and, in return, receives a pre-agreed share of the proceeds only if the case is successful. Legal representation is always provided by a specialist solicitor. This approach generally results in a higher sum than an immediate sale, as no buyer needs to factor the assumed risks into the price. Above all, it requires patience, as payment is only made once the heirs have paid.
The sale is the third option and the only one that reverses the order. The money comes first, followed by enforcement, and that is no longer your problem.
Which approach is right depends on two questions. How urgently do you need the money – because you’re due to take out a loan, are under pressure from debt, or simply want to bring a phase of your life to a close? And what is the conflict costing you in terms of energy, sleep and relationships that might still be salvaged? If both answers are straightforward, there is a strong case for asserting your claim and taking the higher sum. If either of these aspects is causing difficulties, there is a practical reason to consider selling. In almost every situation, simply waiting is the only disadvantage. The claim usually becomes time-barred after three years, calculated from the end of the year in which you learnt of the inheritance or disinheritance. After that, the heirs can permanently refuse payment, and a time-barred claim is practically impossible to sell. Even as the limitation period approaches, offers are generally significantly lower.
If you want to get your way without having to make the first move
Normally, the compulsory share is claimed from and paid out to the heirs as a matter of course. Things become difficult if the heirs make payment difficult, undervalue the share or drag the matter out. This is precisely when Erbfinanz steps in. We can bear the cost risk of enforcement, so that you do not have to pay for solicitors, expert reports and court costs up front. Legal representation is always provided by a specialist solicitor.
Your no-obligation enquiry is free of charge and confidential.
What to look out for when selling
The most costly mistakes happen before the contract is signed. The most common is selling blindly – that is, without having exercised the right to information and without having at least roughly estimated the value of the estate. Without this basis, it is impossible to assess an offer. It can prove just as costly if supplementary claims arising from lifetime gifts are overlooked, whether in the valuation or in the wording of the contract. And anyone who waits for the limitation period to expire will, in the end, no longer be negotiating the price, but whether anyone will even buy the estate at all.
The best way to assess the buyer is to check four key points. A reputable provider will not charge any money for an assessment or a quote; upfront costs of any kind are a warning sign. They will explain clearly how their offer is derived from the face value of the claim and the deductions, rather than simply quoting a lump sum. They will not pressure you, but will give you time to review the contract – including, if you wish, with your own solicitor. And they will specify that the purchase price covers everything and that no further claims will be made against you, provided your details are correct. If any of these points are missing, it is worth taking a closer look, regardless of how high the offer is.
Frequently Asked Questions
Do the heirs have to agree to the sale?
No. The assignment takes effect without the consent or involvement of the heirs. They usually only find out about the sale when the assignment is notified to them; after that, they can only make a payment to the purchaser that discharges the debt.
Can I sell just part of my entitlement?
Legally speaking, yes, a monetary claim can also be partially assigned. Whether a buyer agrees to this is a matter for negotiation. This might be conceivable, for example, if you need part of the sum immediately and wish to recover the rest yourself or through financing.
How soon will I receive the money?
This depends primarily on how quickly your claim can be substantiated. If a will and relevant details of the estate are available, it often takes only a few weeks from the initial enquiry to the payment being made. A contested claim in court, on the other hand, can drag on for several years.
Are there any taxes payable on the proceeds of the sale?
For the purposes of inheritance tax, the compulsory share only becomes relevant once you make a serious claim for it; furthermore, anyone who realises the value of this entitlement by selling it may also trigger the tax liability. The key factor is the personal allowance: €400,000 for children and €500,000 for spouses and registered civil partners. Below these thresholds, the inheritance is generally tax-free; however, any gifts made by the deceased within the last ten years are taken into account. For larger sums, it is therefore important to consider the tax implications before signing.
Can I sell my future statutory share whilst my parents are still alive?
Not to an outside purchaser; such a contract would be void. It is possible, during the testator’s lifetime, to draw up a notarised contract between future statutory heirs; in practice, however, it is more common to have a notarised waiver of the compulsory share in return for a settlement paid by the future testator themselves.
What matters in the end
Selling your statutory share is a clear-cut exchange. You give up part of the sum and, in return, receive what a court case can never offer: a fixed sum, a payment date that’s not too far off, and an end to the dispute. Whether this is a good deal depends on what you’re currently short of in your life. If you have the time and patience to spare, pursuing your claim yourself or securing litigation funding will generally yield a better outcome. If, on the other hand, reaching a settlement is your priority, selling your statutory share is the quickest way to achieve it.
You shouldn’t make this decision based on guesswork. Find out your valuation, exercise your right to information, ask for an explanation of the calculations behind each offer, and compare the immediate payment with what the alternatives are realistically likely to yield. Then the sale will not be a stopgap measure, but an informed decision.
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Note on the content of this guide
The articles in this guide are intended to provide general information on inheritance law matters. They do not constitute legal advice and are no substitute for advice in individual cases. Whether a claim exists, and if so, to what extent, always depends on the circumstances of the specific case. Only a solicitor can provide a definitive assessment; in matters of inheritance law, this is usually a specialist solicitor in inheritance law.
All content is carefully researched and regularly reviewed. However, legislation and case law are subject to change. We are therefore unable to guarantee that the content is accurate, complete or up to date.
Note on the use of artificial intelligence
The articles in this guide are produced with the help of artificial intelligence and are editorially reviewed and approved.