Testamentary disposition

Last Will and Testament - A last will and testament is a declaration in which a person specifies what is to happen to their estate after their death. In the context of real estate, it determines who inherits a property, whether it should be sold or remain in the family, and what conditions apply. The most important forms are the will (unilateral, revocable at any time) and the inheritance contract (bilateral, amendable only by mutual agreement).

Forms and Formal Requirements

A holographic will must be written entirely by hand and signed (Section 2247 of the German Civil Code). Typed or printed wills are invalid; the date and place of execution should also be specified. A notarized will is certified by a notary and is particularly recommended for real estate assets, as it can replace the certificate of inheritance-the heir can have themselves registered as the new owner directly with the land registry office. An inheritance contract (Sections 2274 et seq. BGB) is notarized and is binding on both parties. It is frequently used between spouses or to regulate corporate succession.

The Berlin will is a special form of joint will between spouses: Both designate each other as sole heirs; only after the death of the last surviving spouse do the children inherit. For real estate owners in Nuremberg, however, the Berlin will can be tax-disadvantageous if high inheritance tax exemptions (€400,000 per child) are not fully utilized due to the chain of inheritance. Early tax advice is essential here.

Special Considerations for Real Estate Assets

Real estate poses a particular challenge in estate planning: It is indivisible (unlike cash or securities), often the largest asset, and emotionally charged. Without a clear testamentary disposition, a property passes to the community of heirs-who can only dispose of the property jointly, which in practice often leads to years of dispute.

Through specific dispositions, the testator can control the succession:

• Bequest: A specific property is allocated to a single person
• Order of partition: The testator determines how the community of heirs should divide the property
• Advance bequest: A co-heir receives a specific property in addition to their share of the estate
• Execution of the will: An executor is appointed to coordinate the distribution of the estate

Statutory share and property value

Even if a will exists, the testator’s descendants and spouse may be entitled to a statutory share-half of the legal inheritance share (Section 2303 of the German Civil Code). In the case of real estate, this claim can cause liquidity problems: The heir owns the property but must pay out the statutory share in cash. If no loan can be obtained to finance the statutory share and the heir does not want to sell the property, a classic dilemma arises. With early planning-such as through lifetime gifts while observing the ten-year period-the burden of the statutory share can be reduced.

Practical Tip for Property Owners in Nuremberg

We strongly recommend that property owners in the Nuremberg metropolitan region arrange their succession early and through a notary. A notarized will saves the heirs the cost of a certificate of inheritance (cost: several thousand euros, depending on the value of the estate) and significantly speeds up the correction of the land registry. Especially in the case of multi-family homes or mixed-use properties, it should be clearly stipulated whether the property is to be sold, transferred to an heir, or retained in the family-and how the statutory share will be settled.

In practice, we regularly see in Nuremberg and the surrounding region that missing or outdated wills-especially among owners who purchased their homes in the 1970s through 1990s and have not updated their wills since-lead to complicated inheritance disputes that drag on for years. An estate update every five to ten years, especially following major life changes (marriage, birth of grandchildren, divorce), is therefore strongly recommended. Contact us-we’ll connect you with experienced notaries and estate planning attorneys in Nuremberg.

Frequently Asked Questions

Do I need a separate will for each property?

No. A will applies to the entire estate. You can make specific bequests within it (e.g., “My son receives the apartment in Nuremberg, my daughter the house in Erlangen”). Such allocations are called bequests or distribution instructions. A single, well-structured will is sufficient even if you own multiple properties-provided that all properties are clearly described and the equalization payments are clearly regulated.

Can I bequeath a property to someone outside the family in my will?

Yes. The freedom of testamentary disposition allows you to name any beneficiary you choose. However, statutory heirs (spouse, children) have a right to a compulsory portion-this amounts to half of the statutory share of the inheritance and must be paid out in cash. The statutory share cannot be revoked by a will (except in extreme exceptional cases under § 2333 BGB), which can place a significant financial burden on the heir in the case of high-value real estate.

What happens without a will?

Statutory succession applies: spouses and children inherit jointly and form a community of heirs. All decisions regarding the property (sale, rental, renovation) must be made unanimously. In practice, this often leads to deadlocks and frequently ends in a partition auction-the least favorable method of liquidation, in which typically only 50-70% of the market value is realized.

What are the costs of a notarized will?

The costs of a notarized will depend on the value of the estate. For a property valued at 500,000 euros, notary fees for the will typically range from 500 to 1,500 euros-depending on the complexity of the provisions. In addition, there is a filing fee at the probate court. This investment is very small compared to the costs incurred by an inheritance dispute or a complex probate process.

Back to the Real Estate Glossary.