German statutory succession explained simply

This article describes the legal position under German law.

A single employee with no children dies suddenly in an accident. He left no will and assumed his partner would inherit automatically – they had lived together for eight years. The reality: under statutory succession his parents inherit everything and his partner receives nothing. Even the car they bought together and the furniture pass to his parents. Had he known how statutory succession works, a simple will would have taken care of it.

I. How does statutory succession work?

Without a will or inheritance contract, statutory succession applies under sections 1924 ff. of the German Civil Code (BGB). The law divides relatives into classes – the closer the relationship, the stronger the claim. Heirs in an earlier class exclude all later classes entirely.

First-class heirs (section 1924 BGB):

Descendants of the deceased – children, grandchildren, great-grandchildren. Children inherit in equal shares. If a child has predeceased, that child’s own children take their place.

Second-class heirs (section 1925 BGB):

The deceased’s parents and their descendants – siblings, nieces, nephews. They only inherit where there are no descendants.

Third-class heirs (section 1926 BGB):

Grandparents and their descendants – uncles, aunts, cousins. They inherit where neither the first nor the second class exists.

Spouses (section 1931 BGB):

A spouse has a statutory right to inherit alongside relatives. Under the default matrimonial property regime (Zugewinngemeinschaft) the spouse inherits half alongside children, and three quarters alongside second-class heirs. Unmarried partners have no statutory right of inheritance – however long the relationship lasted.

II. Examples from practice

1. Married couple with two children

If one spouse dies, the surviving spouse inherits half (under the default regime) and the two children share the other half – a quarter each. That means the children are immediately co-heirs with a say in all estate matters. The surviving spouse cannot sell the family home without their consent.

2. Single person without children

If the parents are still alive, they inherit in equal shares. If one parent has died, the other inherits that half together with the deceased’s siblings. If both parents have died, the siblings inherit in equal shares.

3. Married without children, parents deceased

The spouse inherits three quarters and the deceased’s siblings inherit a quarter. Suddenly brothers- or sisters-in-law are co-heirs – with full rights to information, estate administration and consent.

4. Unmarried with a partner and one shared child

The child inherits everything – the partner receives nothing. If the child is a minor, the mother administers the estate as legal representative but has no entitlement of her own.

III. Common surprises

1. Parents and siblings inherit too

Many childless married people assume their spouse inherits everything automatically. In fact, under the default regime the deceased’s parents or siblings inherit a quarter. That creates unwanted communities of heirs and conflict.

2. Unmarried partners inherit nothing

Without a will or inheritance contract the partner receives nothing – even after decades together. Even jointly financed assets pass to the statutory heirs. Only spouses and registered civil partners have a statutory right of inheritance.

3. Stepchildren are not statutory heirs

Stepchildren only inherit from their biological or adoptive parents. If a stepfather did not adopt the children, they inherit nothing on his death – even if he raised them as his own for decades.

4. A community of heirs instead of sole ownership

Several statutory heirs automatically form a community of heirs (Erbengemeinschaft, section 2032 BGB). Every decision about estate assets requires unanimity. Any co-heir can force a division – the house must be sold, even if others want to remain living in it.

5. Distant relatives inherit before the state

Only where absolutely no relatives up to the fourth or fifth class remain does the state inherit (section 1936 BGB). If necessary the law will look for distant third cousins before the estate passes into public hands.

IV. When statutory succession becomes a problem

In blended families: stepchildren and unmarried partners receive nothing, while biological children from earlier relationships inherit – often not what was intended.

With businesses and property: communities of heirs cannot run a business and often have to sell property below value. The lack of decision-making capacity puts business value at risk.

In families in conflict: statutory succession knows nothing of personal relationships. The estranged brother or the daughter no longer in contact inherits regardless of the deceased’s wishes.

With international elements: where heirs live abroad or the deceased held foreign assets, different succession regimes collide. Without a will this leads to years of proceedings.

With substantial assets: statutory succession makes no use of tax planning. Allowances go unused, the tax burden rises unnecessarily and value is destroyed.

V. What you should do now

Statutory succession rarely matches your actual wishes and your circumstances. It is the legislator’s fallback – not your personal succession plan. Particularly with unmarried partners, blended families, property or businesses, it produces unintended and often damaging results.

Have your statutory succession modelled. I analyse your family situation, show you concretely who would inherit as things stand, and develop solutions that reflect what you actually want – whether a will, an inheritance contract or lifetime gifts.

Get in touch for a thorough initial consultation on statutory succession – so that your assets end up in the right hands and no unwanted surprises arise.