Executor

Executor - a person named by the testator in a will or inheritance contract who, following the testator’s death, carries out the testator’s final wishes and properly administers the estate. The legal basis for this is found in Sections 2197 through 2228 of the German Civil Code (BGB). Especially in cases involving real estate assets and complex estates, the executor is an indispensable tool for preventing disputes among heirs and ensuring that assets are liquidated in accordance with market conditions.

Duties and Powers of the Executor

Following the testator’s death, the executor assumes responsibility for administering the estate and ensures that the testamentary dispositions are carried out. Their core duties include safeguarding and managing the estate’s assets, fulfilling bequests and conditions, and distributing the estate fairly and promptly among the heirs.

The law distinguishes between two main forms: In settlement execution, the executor carries out the last will, distributes the estate, and then concludes their term of office-usually within a few months to a few years. Continuing administration, on the other hand, extends over a longer period; the executor then manages the estate on an ongoing basis, for example until a minor heir reaches the age of majority, until certain conditions are met, or for a period of up to 30 years specified by the decedent.

Legally, the executor has far-reaching powers: He may dispose of estate assets, enter into contracts, lease, manage, and sell real estate, and take out loans in the estate’s interest. The heirs are restricted in their ability to dispose of the estate as long as the executorship continues-they may not sell or encumber estate real estate on their own authority.

At the same time, the executor is subject to strict duties: He must manage the estate properly, act with care and diligence, provide the heirs with regular information, and render accounts. In the event of a breach of duty, he is personally liable to the heirs for damages-a significant liability risk that professional executors cover with appropriate professional liability insurance.

Remuneration and Appointment

The executor’s remuneration is primarily determined by the testator’s instructions. If the testator has not made any provisions, the executor is entitled to reasonable remuneration (Section 2221 of the German Civil Code). In practice, courts and experts often follow the recommendations of the German Notary Association (the so-called Rhinow Table), which provide for remuneration of approximately 2-4% of the gross estate value, scaled according to the size of the estate.

In the case of particularly extensive or complex estates-such as those involving multiple properties, ongoing leases, equity interests, or international elements-the remuneration may also be higher, as the time required and the liability risk are significantly greater. An estate comprising five rented apartment buildings requires considerably more work than a portfolio of securities of the same value.

The appointment is made by the probate court, which appoints the person named by the decedent as executor and issues them a certificate of executorship-an official document that legitimizes the executor vis-à-vis authorities, banks, and the land registry. The position is voluntary: the designated person may decline to accept it. Private individuals (trusted persons), as well as attorneys, tax advisors, notaries, or specialized service providers, may serve as executors. For real estate estates, we recommend selecting a person with experience in real estate law or real estate management.

Executor and Real Estate Sale

In estates involving real estate, the executor plays a particularly important role: They are the only person authorized to sell the estate’s real estate-an executor’s note in the land registry makes this publicly visible and protects buyers from competing claims by the heirs. Without this notation, heirs could attempt to sell the property in parallel, which would lead to significant legal uncertainty.

The executor typically engages a real estate agent who appraises the property at market value and markets it. The agent negotiates the purchase price, signs the purchase agreement, and ensures that the proceeds are distributed among the heirs in accordance with the will. For buyers, a clearly authorized executor is a relief, as they have only one point of contact and do not need to obtain consent from the individual heirs.

Practical Tip for Nuremberg and Franconia

For real estate assets in the Nuremberg metropolitan region, we recommend carefully reviewing the appointment of an executor. Especially in cases involving multi-family homes, communities of heirs, or when properties are spread across different neighborhoods-such as Altenfurt, Langwasser, Gibitzenhof, or Fürth-an experienced executor can prevent disputes among the heirs and ensure a market-driven sale.

We advise consulting with a notary or attorney in Nuremberg who specializes in estate law while you are still alive to tailor the execution of the will precisely to your specific financial situation. In doing so, you should also specify the powers granted to the executor (e.g., private sale without a minimum bid, engagement of real estate agents and appraisers) and how the compensation is determined. We work closely with experienced estate administrators in the region and support executors in the market-based valuation and marketing of estate properties.

Frequently Asked Questions

When is an executor advisable?

An executor is particularly advisable when the estate is complex-for example, involving multiple properties, business shares, ongoing lease or tenancy agreements, or a large community of heirs with potential for conflict. Execution of a will also offers additional legal certainty and control in cases involving minor heirs or when the decedent wishes to ensure that bequests are fulfilled exactly (e.g., payment of a monetary bequest to a specific child). Even if the heirs get along well, a neutral executor can help make difficult decisions (e.g., timing of a sale, pricing) professionally and without conflict.

Can the heirs remove the executor?

The heirs cannot simply remove the executor-he acts on behalf of the decedent, not the heirs. However, they have the option to apply to the probate court for the executioner’s dismissal if there is good cause-such as a gross breach of duty, persistent inaction, a conflict of interest (e.g., if the executor is personally interested in purchasing the property), or an inability to manage the estate properly. The probate court will decide after reviewing the circumstances and will hear the executor before granting dismissal.

How does the execution of a will affect real estate sales?

As long as the executorship is in effect, only the executor may dispose of estate real estate-not the heirs themselves. A notice of executorship is entered in the land register, signaling to buyers, banks, and authorities that only the executor may act as a contracting party. This provides legal certainty for all parties involved. The executor proves their authority to the notary by presenting the certificate of executorship issued by the probate court-this document is a prerequisite for any valid act of disposition regarding estate real estate.

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