Anyone who inherits normally receives both the assets and the right to dispose of them. The administration of the estate separates these two aspects. The house, bank accounts and investment accounts belong to the heirs. However, it is someone else – chosen by the testator for this purpose – who is authorised to sell, transfer funds or close accounts.
This separation is deliberate. Anyone who makes such an arrangement accepts that their heirs will be restricted, because something else is more important to them. The aim is to protect a child who is unable or not allowed to manage money. The aim is to ensure that a business survives the succession. The aim is to prevent a divided family from paralysing itself for years on end.
Key points at a glance
- The executor takes possession of the estate and has the power to dispose of it; in other words, they may sell, transfer or encumber the assets. The heirs may no longer dispose of the assets of the estate that are subject to the executor’s administration (Sections 2205 and 2211 of the German Civil Code (BGB)).
- His office is a distinct one. He acts in his own name but on behalf of others, not as a representative of the heirs, and his office commences upon acceptance, not upon the probate court’s certificate.
- The appointment of an executor may only be made by will or by contract of inheritance (Section 2197(1) of the German Civil Code (BGB); in the case of a contract of inheritance, pursuant to Section 2299 BGB). The probate court may not appoint anyone of its own accord.
- The standard procedure is the execution of the estate. This ends once the estate has been distributed. The ongoing execution under section 2209 of the German Civil Code (BGB) continues and is, in principle, limited to 30 years (section 2210 BGB).
- Heirs may request an inventory of the estate, demand an account of the estate’s affairs, enforce the release of items not required, and claim damages. The testator cannot release the executor from these obligations (Section 2220 of the German Civil Code (BGB)).
- There is no ongoing supervision by the probate court. Anyone wishing to achieve anything must take action themselves.
- Even where the administration of an estate has been ordered, a claim for the compulsory share may only be brought against the heirs (Section 2213(1), third sentence, of the German Civil Code (BGB)).
- The fee is not specified by law. In practice, it is calculated in accordance with the recommendations of the German Notaries’ Association, which have been available in a new version since 2025 and replace the former Rhenish Table.
What the order does with the estate
Almost everything else is set out in Section 2205 of the German Civil Code (BGB). The executor is responsible for administering the estate; they may take possession of it and dispose of the individual items. They empty the bank account and reinvest the money, sell the property and terminate the tenancy agreement for the deceased’s flat.
The reverse situation is set out in Section 2211 of the German Civil Code (BGB). An heir may not dispose of an item of the estate that is subject to his or her administration. If he or she sells the inherited house nonetheless, the transfer of ownership is void. However, the contract of sale remains valid, and the heir may be liable to the purchaser for failing to deliver the property. As long as the appointment of the executor is not recorded in the land register, a purchaser who is unaware of this appointment could even acquire the property validly (Section 2211(2) of the German Civil Code (BGB)). For this reason, the Land Registry enters the appointment ex officio as soon as the heir is registered there (Section 52 of the Land Registry Act (GBO)). Thereafter, no one may plead ignorance, and acquisition in good faith is precluded.
The division of roles is also shifting in court. Only the executor may assert rights that fall within the scope of his administration (Section 2212 of the German Civil Code (BGB)). Conversely, creditors of the estate may choose whether to bring a claim against the heir or the executor, at least for as long as the latter is administering the entire estate (Section 2213(1) of the German Civil Code (BGB)). On the other hand, anyone who has lent money to the heir personally cannot access the estate whilst the administration is ongoing (Section 2214 of the German Civil Code (BGB)). This brief provision is one of the cornerstones of the will for people with disabilities.
The share of the estate itself is not subject to a freeze. Section 2211 of the German Civil Code (BGB) applies only to individual items of the estate, and according to the overwhelming majority of legal opinion, one’s own share of the estate is not included in this. A co-heir may therefore sell and assign their share of the estate by notarial deed even during the administration of the estate (Section 2033(1) of the German Civil Code (BGB)). The purchaser takes over the share together with the administration of the estate and has no more access to the individual items than the seller did previously. The right of pre-emption of the other co-heirs remains in force (Section 2034 of the German Civil Code (BGB)).
A common misconception concerns the role of the executor. He does not represent anyone. He does not act on behalf of the heirs or on behalf of the deceased, but in his own right. He requires neither a power of attorney nor consent to carry out his duties. He may provide proof of his status by means of a certificate of executorship issued by the probate court (Section 2368 of the German Civil Code (BGB)), which legitimises him in much the same way as a certificate of inheritance legitimises the heirs.
Processing or duration
The law recognises two basic forms, which differ in their purpose.
Execution of the estate is the standard procedure. The executor carries out the provisions of the will (Section 2203 of the German Civil Code (BGB)). They therefore fulfil legacies whereby the testator has bequeathed a specific item to someone, and conditions that oblige an heir to perform a specific act. He settles the debts of the estate and, where there are several heirs, divides the estate amongst them (Section 2204 of the German Civil Code (BGB)). His role then comes to an end. There is no statutory time limit for this, but there is a benchmark. The distribution must take place promptly, and an executor who simply administers an estate awaiting settlement for years is failing to fulfil their duty (Higher Regional Court of Munich, order of 25 May 2023, 33 Wx 36/23 e).
Permanent administration under Section 2209 of the German Civil Code (BGB) achieves the opposite. In this case, nothing is to be distributed. The administrator manages the estate on a permanent basis and, at most, distributes any income generated. This form is sometimes referred to as ‘administrative administration’; the same provision is meant. Section 2210 of the German Civil Code (BGB) sets a time limit of 30 years from the date of inheritance, though this is not a fixed limit. The testator may instead link the administration to the lifetime of the heir or the executor, in which case it continues beyond that period. This is the basis for the ‘disability will’.
Two special forms are narrowly defined. The executor of a reversionary legacy exercises the rights of the person who is to inherit at a later date until such time as the reversionary succession takes effect (Section 2222 of the German Civil Code (BGB)). The executor of a legacy ensures that a legatee carries out the obligations imposed upon them (Section 2223 of the German Civil Code (BGB)). It is also possible to limit the execution to the share of the estate of a single co-heir, whilst the others are free to dispose of their shares as they wish.
The form that applies is determined by the will, though this is often not apparent at first glance. If the will merely states that a particular person is to act as executor, this constitutes a settlement of the estate. The testator must specifically appoint an executor for a continuing executorship; it does not arise simply by waiting.
If the testator appoints more than one person, they shall act jointly. If they are unable to reach an agreement, the probate court shall decide, unless the will provides otherwise (Section 2224 of the German Civil Code (BGB)). Any of them may take necessary measures to preserve the estate on their own.
Why someone might appoint an executor
Minor children. If a child inherits, their parents normally manage the estate until they reach the age of majority. In the case of separated or divorced parents, this means that the surviving parent oversees the deceased parent’s money. Although they are obliged to manage the estate properly, they are subject to very little oversight. Section 1638 of the German Civil Code (BGB) allows for the exclusion of parental management of the inheritance, and the appointment of an executor is the usual way of transferring the administration to someone else instead. The executor has greater discretion than a parent or a guardian, as they do not require authorisation from the family court for their actions. They are bound only by the testator’s instructions and by the duty to manage the estate properly.
Heirs who live on social security benefits. If a disabled child who receives integration support or basic income support inherits, the inheritance may be largely depleted because benefits are withdrawn as long as assets are available. The ‘disability will’ is designed to prevent this and combines three key elements to achieve this: a non-exempt preliminary bequest, ongoing execution of the will, and specific instructions to the executor regarding the payments to be made to the child.
The key factor is the interplay between the two. The funding body rarely has direct access to the assets of the estate. It assumes the claims of the person entitled to benefits by transferring them to itself (Section 93 of Book XII of the Social Code [SGB XII]; in the case of integration assistance, Section 141 of Book IX of the Social Code [SGB IX]). The aim of this arrangement is to ensure that no such claim exists at all. The executor owes the child no payment; he or she grants benefits in accordance with the terms of the will. Furthermore, the non-exempt preliminary inheritance ties the child to the estate’s assets, because dispositions of land and gifts become ineffective upon the reversionary heir’s death (Section 2113 of the German Civil Code (BGB)) and enforcement proceedings by the executor’s own creditors are equally futile (Section 2115 of the German Civil Code (BGB)). Section 2214 of the German Civil Code (BGB) excludes these creditors from the outset.
The instructions to the executor are not merely incidental. Without them, the executor would not know which distributions he is permitted to make. However, this alone does not render the will invalid (Federal Court of Justice, order of 24 July 2019, XII ZB 560/18), and the Federal Court of Justice has for decades considered such arrangements not to be contrary to public policy (landmark judgement of 21 March 1990, IV ZR 169/89). However, without clear guidelines, the executor is left to proceed blindly.
Often, the arrangement breaks down at another point. The child’s share of the estate must be at least equal to their statutory share. If it falls short of this, or if the child is disinherited entirely, a financial claim arises which the funding body may pass on. From a tax perspective, this arrangement also comes at a cost, as the preliminary heir is treated as an heir for the purposes of inheritance tax (Section 6 of the Inheritance Tax Act). Consequently, tax is levied on assets which, as a rule, the child will never have at their disposal.
Divided communities of heirs. A community of heirs can only dispose of the estate jointly. A single co-heir who refuses to cooperate brings everything to a standstill. The executor breaks this deadlock because they decide alone. However, this does not resolve every conflict; it often merely shifts it elsewhere.
Bequests and conditions. Anyone who bequeaths their mother’s jewellery to a niece or stipulates that the cats are to be looked after is otherwise relying on the heirs to cooperate. An executor ensures that such instructions are binding, and is liable if they fail to fulfil them.
Companies and shareholdings. Estates whose administration requires specialist knowledge are the classic use case, but legally speaking, they are the most challenging.
What is the best course of action now?
In two minutes, you’ll know where you stand. All it takes is five answers – no contact details or supporting documents required – and the results will appear on screen straight away.
This is what your analysis shows
Special case: companies and shares
In the case of a sole trader’s business, the standard procedure for the execution of a will is not possible because two areas of law conflict with one another. Under commercial law, the owner of a business has unlimited liability with their private assets; under inheritance law, however, the executor may only incur liabilities that are charged to the estate (Section 2206 of the German Civil Code (BGB)). Following a landmark ruling by the Federal Court of Justice, legal practice has resorted to two alternative solutions (judgement of 18 January 1954, IV ZR 130/53). Under the power of attorney solution, the heir is the owner and bears liability, whilst the executor manages the business as an authorised representative. Under the trust solution, the executor manages the business in their own name and bears personal liability for it.
In the case of company shares, the legal form is decisive. The execution of a will is permitted in respect of shares in a limited liability company (GmbH), and the executor then usually also exercises the voting rights, except where this would involve deciding on matters concerning themselves (Federal Court of Justice, judgement of 13 May 2014, II ZR 250/12). The articles of association may also impose restrictions. The execution of a will is also permitted in respect of limited partnership interests, and the Federal Court of Justice has most recently even confirmed this in a case where the heir was already a partner themselves (order of 12 March 2024, II ZB 4/23).
In the case of shares held by personally liable partners in an OHG or GbR, another issue arises first. Without a succession clause in the partnership agreement, the share does not pass to the heirs at all. The partner ceases to be a partner upon death, the partnership continues to operate, and the heirs are only entitled to a claim for compensation (Section 723(1)(1), § 711(2) of the German Civil Code (BGB); for an OHG, § 130(1) No. 1 of the German Commercial Code (HGB)). A simple monetary claim can be administered without difficulty. If, on the other hand, the partnership agreement provides for the transfer of the share, the result is only a partial solution. The executor administers the property rights, whilst voting and management rights remain with the heir, as the heir would otherwise be subject to unlimited liability without having a say in decision-making. With regard to the execution of the will itself, the legislature deliberately made no provision in the reform of partnership law effective from 1 January 2024. The usual solution is for the heir to request to be transferred to the position of a limited partner (Section 131 of the German Commercial Code (HGB)), thereby ending their personal liability.
What the executor must do
Nothing takes place until the office has been accepted. Acceptance is effected by a declaration to the probate court, at the earliest after the opening of the succession, and may not be for a fixed term or subject to any conditions (Section 2202 of the German Civil Code (BGB)). Anyone who fails to make a statement may be pressured by any of the parties involved. Upon application, the court will set a deadline, and once this has expired, the office is deemed to have been declined. A person may decline without giving reasons, as no one is obliged to accept an office that has been intended for them.
Immediately after taking up the role, the executor must provide the heirs with a list of the assets under his administration, together with any liabilities of the estate of which he is aware (Section 2215 of the German Civil Code (BGB)). The inventory must bear the date on which it was drawn up and the executor’s signature. At the heirs’ request, the executor must have the signature certified or have the inventory drawn up by a public authority or a notary, and the heirs are entitled to be present. The costs are borne by the estate.
Section 2216 of the German Civil Code (BGB), the key standard of care, applies to the administration itself. Every decision will subsequently be assessed against this standard. The executor must comply with the testator’s administrative instructions, though not at any cost. If compliance with them would significantly jeopardise the estate, the probate court may, upon application, set them aside.
In relation to the heirs, the law governing agency essentially applies pursuant to Section 2218 of the German Civil Code (BGB). The executor is obliged to provide them with information on the current state of affairs and to render an account of his administration; he must hand over any assets he has acquired, and he may claim reimbursement of his expenses. If the administration takes longer, the heirs may demand an annual statement of accounts. The executor is not required to provide this of his own accord; the heirs must therefore request it.
For the purposes of inheritance tax, he takes the place of the heirs. If the execution of a will has been ordered, he submits the tax return (section 31(5) of the Inheritance Tax Act), and the tax assessment notice is served on him (section 32(1) of the Inheritance Tax Act). This does not make him liable for the tax; that remains the responsibility of the beneficiary (Section 20(1) of the Inheritance Tax Act). However, he must ensure that the tax is paid from the estate, and he is personally liable if he fails to do so intentionally or through gross negligence (Sections 34(3) and 69 of the German Fiscal Code (AO)). Consequently, the estate is usually not distributed until the tax issue has been resolved. The Federal Fiscal Court has, however, limited the obligation to provide a declaration. This obligation exists only insofar as enforcement relates to the subject matter of the acquisition and the tax office requires the declaration from him (judgement of 11 June 2013, II R 10/11).
Finally, where there are several heirs, he draws up a plan for the division of the estate, distributes the estate in accordance with the provisions of Sections 2042 to 2057a of the German Civil Code (BGB) and prepares a final account. Before implementing the plan, he must consult the heirs (Section 2204(2) BGB).
There are four obligations from which the testator cannot exempt the executor: namely, the inventory of the estate, the proper administration of the estate, the rendering of accounts, and liability for his own errors (Section 2220 of the German Civil Code (BGB)). If the will states otherwise, that clause is invalid.
Where his powers end
The executor must not make gifts. He is prohibited from making dispositions without consideration, with a narrow exception for gifts that are in accordance with a moral duty or decency (Section 2205, third sentence, of the German Civil Code (BGB)). A sale at a price significantly below market value is also deemed to be gratuitous if the executor was aware of the disparity or, had they exercised due care, ought to have been aware of it. Even if the testator exempted them from any restrictions when incurring liabilities, this limitation remains in force. He may only make a promise to make a gift within the scope of Section 2205, sentence 3 of the German Civil Code (BGB) (Section 2207, sentence 2 of the German Civil Code (BGB)).
He may only incur debt to a limited extent. He may only enter into liabilities on behalf of the estate to the extent that this is necessary for its proper administration (Section 2206 of the German Civil Code (BGB)). The testator may grant him greater discretion (Section 2207, first sentence, BGB).
Transactions involving one’s own circle are risky. The prohibition on self-dealing under Section 181 of the German Civil Code (BGB) also applies to him, unless the will exempts him from it. If he sells a property forming part of the estate to his own spouse, this does not formally constitute self-dealing, as he is only a party to one side of the contract. Nevertheless, the Higher Regional Court of Braunschweig has restricted his power of disposal in such a case, not on the basis of Section 181 of the German Civil Code (BGB), but on the basis of the presumed intention of the testator (Section 2208 BGB). The sale was only valid with the consent of all heirs, whose status as heirs had to be formally proven (decision of 24 March 2026, 2 W 37/26).
The testator may also impose specific restrictions, such as excluding the sale of a particular property (Section 2208 of the German Civil Code (BGB)). Such restrictions must be included in the will itself, not in a collateral agreement. In any case, the testator has no authority over the heirs’ private assets.
What heirs can claim despite the execution of a will
The probate court does not supervise the executor. Unlike in the case of a carer or guardian, there is no ongoing supervision, no regular reports and no authority that carries out checks on its own initiative. The court only takes action at the request of a party involved. If you do nothing, you will find out nothing.
The rights themselves are considerable. Heirs may request the inventory of the estate and insist that a notary draw it up (Section 2215(4) of the German Civil Code (BGB)). If the administration takes longer, they are entitled to an annual statement of accounts (Section 2218(2) of the German Civil Code (BGB)). Items which the executor clearly does not require must, upon request, be made available for free disposal (Section 2217 of the German Civil Code (BGB)), which is the usual means of making early payments during the settlement phase. In the case of a community of heirs, however, this release applies to all heirs jointly, not to any one individual. Instructions from the testator that would significantly jeopardise the estate may be set aside by the probate court (Section 2216(2) of the German Civil Code (BGB)). Furthermore, any person with a legal interest may inspect the declarations by which the executor has accepted, declined or resigned from office (Section 2228 of the German Civil Code (BGB)).
If the executor causes damage through his own fault, he is personally liable to the heirs and, insofar as a legacy is to be fulfilled, also to the legatee (Section 2219 of the German Civil Code (BGB)). Where there are several executors, they are jointly and severally liable for the full amount. The claim is subject to a limitation period of three years in accordance with the general rules (Sections 195, 199 of the German Civil Code (BGB)); the previous special limitation period of thirty years for claims arising from the law of succession was abolished on 1 January 2010.
The procedure depends on the nature of the claim. Claims for information, the rendering of accounts, authorisation and damages must be brought before the ordinary civil court. Matters to be dealt with by the probate court include the dismissal of the executor, the revocation of the testator’s instructions, the setting of a deadline for assuming office, and access to the files.
Dismissal under Section 2227 of the German Civil Code (BGB)
The application for dismissal goes the furthest. The probate court may remove the executor from office if there is good cause, in particular in the event of a gross breach of duty or an inability to manage the estate properly. Any party to the proceedings is entitled to make such an application, and according to the case law of the Higher Regional Courts, this also includes those entitled to a compulsory share (Higher Regional Court of Bremen, order of 1 February 2016, 5 W 38/15). There has not yet been a ruling on this matter by the Federal Court of Justice.
The standard is strict because the dismissal goes against the testator’s wishes. An executor who paid rent and security deposits into her private account and merely administered an estate awaiting settlement for over four years was dismissed (Higher Regional Court of Munich, order of 25 May 2023, 33 Wx 36/23 e). The same applies to an executor who paid themselves a fee that was no longer within reasonable limits (Hamburg Higher Regional Court, order of 28 August 2019, 2 W 66/19). The same applies to an executor who described a co-heir as a ‘low-class’ client and accused her of despicable lies, as this gives rise to doubts as to the impartiality of their conduct of office (Higher Regional Court of Zweibrücken, order of 17 February 2025, 8 W 11/24).
Not every error is sufficient. The Saarbrücken Higher Regional Court dismissed an application, even though the executor had initially submitted a self-serving distribution plan, the inventories of the estate were incomplete, the distribution of the estate was delayed and there was a dispute over his remuneration. All the shortcomings were remediable, and no replacement executor had been appointed. Dismissal would have brought the execution of the will to an end without a replacement, thereby achieving the opposite of what the testator intended (order of 10 September 2024, 5 W 47/24). Personal aversion, annoyance at the executor’s manner, or mere mistrust are, in any case, insufficient grounds.
The arrangement itself cannot be abolished; only the person carrying it out can be replaced. The quickest way to bring the matter to an end is therefore for the enforcement officer to resign.
Execution of a will and the compulsory share
The ruling does not alter the claim itself, but it does have a significant impact on its enforcement.
The claim is brought against the heirs. Section 2213(1), third sentence, of the German Civil Code (BGB) makes it clear that the compulsory share can only be claimed against the heir even if the executor is administering the entire estate.
Two judgements are required for enforcement. If the heir does not pay, a judgement against him alone is of little use, because the money is held in the estate under administration and he has no access to it. Section 748(3) of the Code of Civil Procedure (ZPO) therefore also requires a judgement against the executor, requiring them to allow enforcement against the estate (Section 2213(3) of the Civil Code (BGB)). In the absence of this second judgement, the only recourse is to seize the heir’s private assets. The executor may, however, pay the compulsory share voluntarily from the estate, and as a rule he does so, because the compulsory share constitutes a liability of the estate.
The heir is also obliged to provide information. The right to an inventory of the estate is directed against the heir in accordance with the wording of Section 2314 of the German Civil Code (BGB), and the execution of the will does not alter this. The heir cannot simply claim that the executor is in possession of the documents. He must obtain them from the executor (Federal Court of Justice, order of 15 January 2025, IV ZR 166/24). For the beneficiary, this means having to go through two additional steps and, consequently, facing longer waiting times.
As a general rule, the costs of enforcement do not reduce the statutory share. The decisive factors are the composition and value of the estate as at the date of death (Section 2311 of the German Civil Code (BGB)). Any fees incurred thereafter are borne by the heirs. An exception may only be considered if the administration also benefits the person entitled to the compulsory share (Federal Court of Justice, judgement of 10 July 1985, IVa ZR 151/83).
Finally, it remains the case that the right to a compulsory share is inheritable and transferable (Section 2317(2) of the German Civil Code (BGB)). It may therefore be assigned or sold without the need for consent from heirs or executors.
The pitfall for heirs entitled to a compulsory share
The situation becomes complicated when a person is both entitled to a compulsory share and has been named as an heir. The appointment of an executor is regarded as a restriction within the meaning of Section 2306(1) of the German Civil Code (BGB). Anyone who, as a restricted heir, wishes to receive the full statutory share in cash must renounce their inheritance.
This decision is subject to a time limit and is irrevocable. The time limit is six weeks, or six months in the case of an inheritance from abroad (Section 1944 of the German Civil Code (BGB)), and it only begins once the person concerned has become aware of the restriction, not upon becoming aware of the inheritance (Section 2306(1), second clause, of the German Civil Code (BGB)). Renunciation cannot be made informally; it must be declared in a record drawn up by the probate court or in a form certified by a public authority (Section 1945 of the German Civil Code (BGB)). From a financial perspective, the comparison is difficult because a share of the estate under administration is often worth more than half the statutory share, albeit becoming available later. Anyone who makes a decision based on a misunderstanding of the legal situation may, under certain circumstances, still be able to contest the acceptance (Federal Court of Justice, judgment of 29 June 2016, IV ZR 387/15); however, this is not a reliable solution. In this scenario, the legal position can usually be clarified by a solicitor before the deadline expires.
The situation is different if an heir receives less than their statutory share. In that case, they are entitled to the difference as the remaining statutory share, and they are not required to renounce the inheritance for this reason (Section 2305 of the German Civil Code (BGB)).
If the payment is blocked or delayed
Normally, the compulsory share is claimed and paid out by the heirs in the usual way. Things become difficult if the information provided is incomplete, the value of the estate is set too low, or the matter is passed back and forth between the heirs and the executor without any progress being made. This is precisely when Erbfinanz steps in to help. 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, confidential and takes just a few minutes to complete.
Who is eligible to take up the post
The law imposes hardly any requirements and merely specifies who is ineligible for the role. The appointment is invalid if, at the time of taking office, the person is legally incapacitated or has limited legal capacity, or has been assigned a guardian to manage their financial affairs (Section 2201 of the German Civil Code (BGB)). A legal qualification is not required. Non-lawyers may also hold the office, as the Legal Services Act expressly lists the execution of a will as a permitted ancillary service (Section 5(2)(1) of the Legal Services Act).
The question remains as to who to appoint. A close relative knows the family, often works without remuneration and is more readily accepted. However, they are rarely in a position to assess a property valuation or prepare an inheritance tax return, and they are liable for their mistakes just as a professional would be. A specialist solicitor, tax adviser or notary costs money, but brings experience to the table and remains outside family conflicts. In situations where the family is at odds, this is where the real benefit lies.
In principle, a sole heir cannot assume the office, because the power to dispose of the estate and the restriction on disposal would then be concentrated in a single person, leaving nothing to be administered. The Federal Court of Justice allows an exception where the role is limited to the immediate fulfilment of a legacy specifically directed against that person, and where the probate court can appoint a substitute executor in the event of a conflict (judgement of 26 January 2005, IV ZR 296/03). A co-heir may hold the office, but this places them in a dual role in which every decision regarding the distribution also affects them personally.
When drawing up a will, the possibility of the preferred candidate becoming unavailable is usually not taken into account. They may die, fall ill or decline the role beforehand. Provision is usually made for this by appointing a substitute executor (Section 2197(2) of the German Civil Code (BGB)) or by leaving the choice to a third party (Section 2198 BGB). If neither of these provisions is in place, the instruction is rendered ineffective, as the probate court may only appoint someone if the testator has requested this in their will (Section 2200 of the German Civil Code (BGB)). Although the existence of such a request can be determined by interpretation, this is precisely the dispute that the provision was intended to avoid.
The cost of executing a will
Remuneration
Section 2221 of the German Civil Code (BGB) entitles the executor to reasonable remuneration, unless the testator has stipulated otherwise. The law does not specify anything further – neither a method of calculation, nor a percentage, nor an upper limit.
This gap is filled by practical guidelines. For decades, this was the ‘Rheinische Tabelle’ in its 2000 version. The German Notaries’ Association has replaced it with new guidelines, which are due to apply to estates from 1 January 2025. The basic fee for the administration of an estate is calculated as a percentage of the value of the estate on the date of death, with debts generally not being deducted:
| Assessment basis | Basic remuneration |
|---|---|
| up to 350,000 € | 5,0 % |
| up to 700,000 € | 4,0 % |
| up to 3,500,000 € | 3,0 % |
| up to 7,000,000 € | 2,0 % |
| up to 35,000,000 € | 1,5 % |
For larger estates, the rate falls further, down to 0.75 per cent for estates of 350 million euros or more. Surcharges are added to the base amount if the administration is complicated, for example due to a disorderly estate, multiple properties, assets held abroad, disputing parties or complex tax matters. Conversely, reductions are provided for if the estate is handed over in good order, if the executor was already familiar with the financial circumstances during the testator’s lifetime, or if the scope of duties has been reduced by mutual agreement. In total, the remuneration must not exceed three times the basic amount nor fall below half of it. In the case of long-term administration, an annual surcharge of between one-third and half a per cent of the assessment basis is added, but this must not be less than two to four per cent of the annual gross income.
This is not binding. Courts treat such recommendations as a guide and, in the event of a dispute, assess what was appropriate in the specific case. Anyone claiming additional charges must demonstrate the extra work involved.
The remuneration is paid from the estate, as it constitutes a liability of the estate. In the case of an estate administration, it becomes due upon completion of the work; in practice, this is usually when the inheritance tax return is submitted. The executor may pay themselves this remuneration without consulting the heirs, though at their own risk. If they overreach, it could cost them the claim and, in extreme cases, their position. Anyone wishing to avoid this dispute should set out the remuneration in their will, for example as a fixed sum, an hourly rate or a waiver.
Two clarifications regarding VAT. The rates quoted are net. VAT is also payable on bailiffs commissioned on a private basis as soon as the activity is of a sustained nature, i.e. takes place over a longer period and comprises many individual transactions. In the case of a genuinely one-off task carried out swiftly, this condition is usually not met. Irrespective of this, the remuneration remains exempt from VAT as long as the enforcement agent complies with the limits of the small business scheme, which, since 2025, have been 25,000 euros in the previous year and 100,000 euros in the current year (Section 19 of the German VAT Act (UStG)).
Court costs and taxes
A one-off fee is payable for the certificate of execution of a will; this is lower than expected because the value of the matter is limited to 20 per cent of the value of the estate and estate liabilities are not deducted (Section 40(5) of the GNotKG). For an estate worth 400,000 euros, the value of the matter is therefore 80,000 euros; the fee according to Table B is 219 euros. If the probate court also requires an affidavit, a second fee is payable.
For the purposes of inheritance tax, the remuneration for the administration of an estate is deductible, as it forms part of the costs of settling the estate. The costs of ongoing administration are not deductible, as Section 10(5)(3), third sentence, of the Inheritance Tax Act (ErbStG) expressly excludes administrative costs. In the absence of itemised evidence, the tax office deducts a flat-rate sum of 15,000 euros for estate administration costs, increased from the previous 10,300 euros with effect from 1 January 2025. This amount is available for the estate as a whole, not separately for each heir. Whether it is worth providing itemised evidence is therefore a matter of calculation, as anyone who does so must provide evidence of all estate-related costs.
It is particularly unwelcome for heirs that ongoing enforcement does not reduce the taxable value of the inheritance. When determining the value, restrictions on disposal arising from testamentary dispositions are expressly disregarded (Section 9(3) of the Valuation Act). Tax is therefore levied on the full value of assets over which the heir may have no control for decades. At least the heir does not have to pay the tax up front, as it is to be paid by the executor from the estate. A deferral of payment is only possible under the strict conditions set out in Section 28 of the Inheritance Tax Act (ErbStG).
How the term of office ends
In most cases, the process ends once the tasks have been completed. Once the estate has been distributed, the tax paid and the final account settled, the executor’s duties are complete. In the case of ongoing administration, the office ceases upon the occurrence of the event to which the testator has linked it; otherwise, it ceases after 30 years (Section 2210 of the German Civil Code (BGB)).
The office may be terminated prematurely in three ways. It ceases upon the death of the executor, or if a circumstance subsequently arises in relation to him which would have rendered the appointment invalid from the outset (Section 2225 of the German Civil Code (BGB)). The executor may himself give notice of resignation to the probate court, and such notice takes effect even if given at an inopportune time; in such a case, however, he may be liable for damages (Section 2226 of the German Civil Code (BGB)). Finally, the probate court may dismiss him upon application (Section 2227 of the German Civil Code (BGB)).
Upon the expiry of the office, the executor’s certificate ceases to have effect by operation of law; it does not need to be surrendered for this purpose (Section 2368, second sentence, of the German Civil Code (BGB)). The entry in the land register is deleted upon application. The power of disposal reverts to the heirs, and from that point onwards they make their own decisions again.
What is the best course of action now?
In two minutes, you’ll know where you stand. All it takes is five answers – no contact details or supporting documents required – and the results will appear on screen straight away.
This is what your analysis shows
Frequently Asked Questions
How long does it take to execute a will?
There is no statutory time limit for the administration of an estate. For a straightforward estate, a few months is a realistic timeframe; however, where property, businesses or disputes amongst the heirs are involved, it takes considerably longer. The only requirement is that the work be carried out promptly. A lengthy duration alone does not justify dismissal; it depends on the reasons.
Is the executor permitted to sell the house without the heirs’ consent?
In principle, yes. He has the power of disposal, and he requires neither consent nor consultation. Restrictions apply in the case of a sale below market value, where the testator has imposed restrictions, and in transactions within his own circle, such as with his spouse.
Does the executor need a certificate of inheritance?
It is not required for the executor’s own purposes; the executor’s certificate is sufficient for this, both in dealings with banks and with contractual partners. A further requirement arises at the Land Registry, as proof must also be provided there as to who has become an heir. A handwritten will is not sufficient for this purpose, not even after it has been opened by the probate court (Section 35(1) of the Land Registry Act (GBO)). In such cases, a certificate of inheritance is also required, the costs of which are borne by the estate.
What happens if the estate is insolvent?
In that case, the administration of the estate is not the appropriate course of action. An executor who is authorised to administer the estate may apply for the opening of estate insolvency proceedings (section 317(1) of the Insolvency Code). This also protects the heirs, as their liability is thereby limited to the estate.
What it all boils down to
The administration of an estate shifts decision-making power from the heirs to a single individual, over whom no official body exercises supervision. This may be sensible, but it always comes at a cost.
Anyone drawing up a will therefore faces a simple test: is there a reason strong enough to deprive the heirs of their freedom? Where there is no such reason, the provision merely incurs costs. Where it is justified, the success of the provision depends on the care taken in its wording, and in practice three matters are typically addressed: the person in question, a substitute in the event of their incapacity, and remuneration.
Anyone who unexpectedly finds themselves faced with a bailiff should draw the opposite conclusion. The heirs no longer have the power to decide on the estate, but they retain their rights of control. The inventory of the estate, the rendering of accounts, the release of assets and liability are laid down in law and cannot be waived. They only take effect when someone enforces them.
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.