Uncertain because of
of your compulsory portion?
Our free calculator provides quick orientation.
Check possible share
Only a few details required
Mandatory portion for grandchildren and how those affected can enforce their claim
When grandparents pass away, many grandchildren are left with unanswered questions. There is often uncertainty as to whether there is a place in the line of succession or whether there is at least a pure monetary claim as a compulsory portion in the event that the will goes another way. The answer is usually more complex than expected. German inheritance law follows a strict order of precedence, which means that the grandchildren's generation is often initially left out of the equation. Unfortunately, no matter how close the relationship with the deceased grandparents is, it does not change this fact.
The decisive factor here is usually the legal succession. As long as your own parents are still alive, they have legal precedence in the event of inheritance. However, there are special life situations and family constellations in which the tide turns. Suddenly, grandchildren can assert their own payment claims to a considerable amount. It is therefore very worthwhile for the younger generation to understand when they will succeed in the line of succession and under what conditions a specific compulsory portion arises. Especially when tangible assets such as family property are involved, a close look at the details of the past is crucial.
Legal succession and why grandchildren often come away empty-handed
To better understand your own entitlement to a payout, it helps to take a look at the legal rules. In inheritance law, the so-called representation principle applies, which is basically just a cumbersome term for what is actually a simple rule. This principle states that a living relative blocks the path to inheritance for all subsequent generations.
In practice, the father or mother therefore becomes the sole representative for the entire branch of the family. This has a direct impact on the compulsory portion. If one of the parents is still alive at the time of death, grandchildren are left completely empty-handed. Curiously, this even applies if the father or mother themselves have been disinherited. In such a situation, only the parents are entitled to the pure monetary claim, while it is not yet the grandchildren's turn legally.
Enforce compulsory portion with Erbfinanz
If an out-of-court settlement fails, enforcing your compulsory portion can quickly become a financial burden. We examine your options objectively - from covering the legal costs to purchasing your claim.
When grandchildren are entitled to the compulsory portion and which exceptions apply
In order for grandchildren to be in a position to claim a payout, the actual link to the grandparents must be removed from the line of succession. This normally happens in two very different situations.
The most common case is predecease. If the father or mother has already died before the grandparents, grandchildren automatically take their place in legal terms and move up in the legal order of precedence. If the younger generation has not been included in the grandparents' will, this is precisely when the right to a compulsory portion arises.
An often underestimated method, however, is the official waiver of inheritance. If a living parent renounces their inheritance after the death of their grandparents, the grandchildren's generation also succeeds them. This can happen for personal reasons or due to excessive debt. Legally, it is then assumed that the parent no longer exists. This opens the door for those affected to either step in as a legal heir or, in the event of disinheritance, to assert a purely monetary claim.
| Situation | Parent still alive | Parent is already deceased |
| Grandchild is disinherited in the will | Usually no entitlement to payment, as parent takes precedence | Entitlement to a pure monetary claim exists |
| There is no will | No entitlement, as parent inherits | Grandchild becomes legal heir |
| Parent has disclaimed inheritance | Payment claim arises | Not applicable in this constellation |
Important difference: The waiver should not be confused with a notarised waiver of inheritance. If the parent has already contractually waived the inheritance during the grandparents' lifetime, this usually also affects the descendants. In this particular case, the grandchildren are usually not entitled to any payment at all, as the entire family branch is legally excluded from the succession.
Calculating the compulsory portion for grandchildren and determining the amount of the monetary claim
Before we get to the specific figures, one fundamental point is important. The compulsory portion is always a purely monetary claim. This is often misunderstood in everyday family life. Affected grandchildren never legally become co-owners of their grandparents' house and do not receive a share of the estate in the form of specific furniture or jewellery. Instead, those entitled to a compulsory portion simply have the right to a cash payment from the heirs. As far as the amount is concerned, the law is very clear. It sets the payment claim at exactly half of what descendants would normally have inherited in the statutory order of succession without a will.
To determine the personal quota, the focus is on the role of the deceased parent in the succession. The first step is to calculate what your own father or mother would have received if the legal succession had proceeded as normal. This fictitious share forms the starting point for the calculation. In the end, the grandchildren are entitled to exactly half of this sum as a pure monetary claim.
A concrete example calculation for the monetary claim
To make the calculation more tangible, it helps to look at a concrete example. Let's assume that the deceased father was an only child and the grandmother died before the grandfather. In this exemplary scenario, the total value of the estate is 200,000 euros.
If there had been no will, the father would have received the full 200,000 euros as sole heir. However, as the payment claim is exactly half of the statutory inheritance, the total amount involved in this case is 100,000 euros.
How much of this ultimately reaches the younger generation depends on the number of siblings. If a grandchild is the only child, this person alone is entitled to the amount of 100,000 euros. However, if, for example, three siblings share the entitlement, the sum is simply divided by three. In this case, each of the grandchildren would therefore have a pure payment claim of around 33,333 euros against the heir.
Higher payment claim due to supplementary claims for gifts
There are factors that can massively change the final amount of the monetary claim. Gifts made by grandparents to other people during their lifetime are a key factor. If larger assets such as a property or large sums of money were given away in the last ten years before death, this value is mathematically added back to the fictitious estate. This claim to a supplementary compulsory portion is an important protective mechanism for those affected. It effectively prevents the estate from being artificially emptied shortly before death in order to minimise the payment claims of those entitled to a compulsory portion.
On the other hand, grandchildren must also take into account what they themselves have already received in the past. Larger sums or valuables from the time before the inheritance can be offset against the later payment under certain circumstances. Whether and to what extent such gifts ultimately reduce the monetary claim depends heavily on the grandparents' stipulations at the time. In such cases, a detailed examination of the historical documents is essential. As banks or land registries do not provide information to disinherited children, a simple phone call is not enough. The necessary information about the estate and past gifts must be requested directly from the heirs via the statutory right to information.
The special features of the ten-year period for real estate
It is often popularly said that a gift is time-barred after ten years and no longer plays a role in the calculation. However, this is often a misconception, especially in the case of houses. If the grandparents have reserved a right of residence or usufruct over the property, this ten-year period usually does not even begin to run in legal terms. In such a case, a house that was transferred twenty years ago can still be included in full in the calculation of the pure monetary claim. As such property values and historical gifts often involve a lot of money, those affected often face expensive legal hurdles and high expert costs when trying to enforce their claims.
This is precisely where Erbfinanz comes into play as an enabler. As a specialised litigation financier, we assume the cost risk for legal enforcement or purchase the payment claim directly. This gives grandchildren immediate liquidity and enables them to exercise their rights without any financial risk of their own.
Hurdles to enforcement and why heirs often reduce the payout claim
Even if the legal situation looks clear on paper, the path to payment for grandchildren is often arduous. In reality, those affected encounter resistance that goes far beyond the mere calculation of quotas.
When there is no insight into the estate
The most common problem is the information gap. While the heirs have full access to accounts or land register extracts, the grandchildren's generation is left out in the cold. Without reliable receipts, however, it is almost impossible to calculate the monetary claim. It is important to know that banks or land registries do not provide information to disinherited children. The necessary information must be requested directly from the heirs via the statutory right to information. In practice, we at Erbfinanz often find that heirs refuse to provide this information or minimise the estate in order to reduce the amount paid out. Those entitled to a compulsory portion must be very persistent in order to find out what assets are actually available.
Dispute over the true value of property
Inherited houses or flats are particularly fraught with conflict. This is where different interests clash. The heirs like to set the value of the property as low as possible in order to have to service a lower monetary claim. The disinherited grandchildren, however, are interested in the actual market value. This difference can quickly amount to many thousands of euros. Without a neutral expert opinion, it is often impossible to resolve such a dispute, which prolongs the process and results in expensive legal fees or expert fees. This is precisely where we at Erbfinanz come in as facilitators and solution providers. We are not lawyers, but as a specialised litigation financier we assume the full cost risk for enforcement. Alternatively, we purchase the payout claim directly so that those affected receive immediate liquidity and do not have to wait years for their money.
Keeping an eye on the statute of limitations
Many grandchildren wait too long out of consideration or uncertainty before taking action. However, this can have fatal consequences, as the right to payment does not last forever. As a rule, this monetary claim becomes time-barred after three years. The period begins at the end of the year in which the person concerned learns of the grandparent's death and the lack of inclusion in the will. If this time elapses unused, the money is usually lost for good. It then no longer matters how justified the original claim was.
Important note on calculating the deadlineThe three-year limitation period always begins on 31 December of the year in which the person concerned learns of the death and disinheritance. For example, if the grandparent dies in May 2024, the period begins on 31 December 2024 and ends exactly at the end of 31 December 2027. If the pure payment claim is only claimed after this date, the heirs can legally refuse payment.
Advance payment for lawyers and experts
If the heirs are stubborn, legal action quickly becomes unavoidable. The path then ranges from an action for disclosure to expensive expert appraisals for family properties. The big problem here is the immense financial risk. Those entitled to a compulsory portion usually have to dig deep into their own pockets for such measures and make advance payments. If the estate ultimately turns out to be over-indebted, those affected may be left with the high costs of the proceedings. There is a constant risk of throwing good money after bad. This is precisely where Erbfinanz comes in as a strong solution provider and facilitator. We are not lawyers, but as a specialised litigation financier we assume the entire cost risk for enforcement. Alternatively, we also purchase the payout claim directly. This gives grandchildren immediate liquidity and allows them to realise their rights without any financial worries.
The fear of a family dispute
Another hurdle that should not be underestimated is the emotional burden. Many grandchildren shy away from the harsh conflict with uncles or aunts because they don't want to be labelled as greedy or are very afraid of ruining the family peace for good. In practice, this psychological pressure often means that claims for payment that are actually certain are not even made. It is not uncommon for those entitled to a compulsory portion to be fobbed off with a far too low settlement by the heirs out of sheer insecurity.
Important checkpoints for the payment claim
- The legal basis of the claim. First of all, it must be crystal clear whether one's own parent has already predeceased the deceased or has officially renounced the inheritance.
- The will and the opening. Those affected should check whether the will or the opening protocol of the court is available. It is important to know that the probate court no longer has jurisdiction once the will has been opened. The pure monetary claim must then be addressed directly to the heirs.
- The actual estate value. All previous information about the grandparents' family property, bank balances or life insurance policies must be compiled. As banks and land registries generally do not provide information to disinherited persons, all missing documents relating to the statutory right to information must be strictly requested from the heirs.
- Past donations. Particular attention should be paid to information on house transfers or major gifts of money within the last ten years. If a usufruct was agreed for real estate, this critical period is legally extended accordingly.
- The impending statute of limitations. Grandchildren must calculate whether more than two years have passed since the end of the year of death. If there is a noticeable approach to the three-year period, there is an urgent need for action to ensure that the money is not irretrievably lost.
Enforce payment claim for grandchildren without cost risk
In practice, this uneven playing field often leads to grandchildren waiving their rightful monetary claim. In most cases, the financial risk and the expected stress simply seem too great. This is precisely where Erbfinanz comes in. We do not interfere directly in the legal conflict, but as facilitators we remove the economic hurdles that may have held those affected back in the past.
Our role is to take the cost risk off the shoulders of those entitled to a compulsory portion. As lawyers in Germany are not legally permitted to work purely on a commission basis, Erbfinanz closes this gap as a specialised provider. This leaves descendants free to take the necessary steps together with their own legal advisor. The constant worry about the next bill for experts or the court is completely eliminated. We offer two different models to ensure that those affected receive exactly the right support.
Litigation funding for legal fees and expert witnesses
Many grandchildren refrain from enforcing the monetary claim because they do not want to advance the high costs of legal assistance or experts. This is where our financing model comes into play. If, after a careful examination, we come to the conclusion that the claim for payment has a chance of success, we will cover all the costs of the proceedings.
In concrete terms, this means that Erbfinanz pays the lawyer, the court costs and also the necessary experts. Those entitled to a compulsory portion do not have to make any advance payments. We only receive a previously agreed percentage share of this if payment is actually received at the end. If, contrary to expectations, we lose the case, we bear the financial loss alone. Grandchildren therefore take no risk and can have their purely monetary claim consistently enforced.
Sale of a compulsory portion for an immediate payout without a waiting period
Sometimes life situations do not allow you to wait years for a judgement or settlement. If those affected wish to avoid a legal dispute altogether and value quick liquidity, Erbfinanz will also purchase the payout claim directly. The claim is then assigned to us for an agreed sum and the money is available immediately.
The big advantage of this is that grandchildren no longer have anything to do with the legal dispute from this moment on. The hassle with the heirs or the months of waiting for court mail are completely eliminated. The risk of whether and when the money is actually collected is transferred entirely to Erbfinanz. The financial security is immediate and reliable.
Knowing your rights and overcoming obstacles
The legal situation for grandchildren is actually clearly regulated, even if it often causes confusion. As long as the father or mother is still alive, the compulsory portion is not normally an issue for the next generation. However, this changes immediately when descendants succeed in the line of succession due to the death of their own parent. From this moment on, legal claims often arise for the payment of considerable sums from the assets that the grandparents have built up over decades.
Unfortunately, in practice it is often the case that being right and being proved right are two completely different things. Many heirs take advantage of their strong position, refuse to provide the legally required information or simply hope that the other party will give up at some point. Many grandchildren are understandably put off by the risk of ending up with high costs for legal assistance and expert opinions.
Those affected should not allow themselves to be prematurely intimidated by this complicated situation. If the legal requirements are right, persistence almost always pays off in the end. If you are unsure whether a monetary claim exists or whether it is worth the effort, Erbfinanz will be happy to help you make an initial assessment.
We offer the opportunity to discuss your personal situation with us without any obligation. Grandchildren can use the enquiry form to describe the key details of their case. We will examine the situation free of charge and explain the available options in a sober and transparent manner. Regardless of whether it is a question of assuming the cost risk or a direct purchase of the claim, those entitled to a compulsory portion know quickly and without any risk where they stand.
Note: This article is intended to provide general information and does not replace individual legal advice in specific cases. Despite careful checking, we accept no liability for the accuracy of the information provided.
