MYHOME REAL ESTATE - THE ORIGINAL SINCE 2014
Parents of a child with a disability or in need of care face a unique challenge when it comes to estate planning: A direct inheritance could result in the child losing government assistance (basic income support, welfare) - because social services count personal assets against benefit eligibility. The so-called “disability will” or “needy person’s will” resolves this dilemma through a clever legal structure. For property owners in Lauf an der Pegnitz who, in addition to managing real estate assets, are also providing for a disabled child, this instrument is indispensable and must be planned well in advance.
The disability will combines three legal instruments from the German Civil Code (BGB): preliminary inheritance (Sections 2100 et seq. BGB), permanent executorship (Sections 2197 et seq. BGB), and the waiver of the statutory share by the other siblings. Together, they ensure that the disabled person is formally an heir-but does not have the inheritance as freely available personal assets.
The arrangement works as follows: The disabled child is appointed as the preliminary heir. The siblings or other persons are named as reversionary heirs. An executor assumes full administration of the estate for the duration of the preliminary heir’s life. Without the executor’s consent, the preliminary heir cannot dispose of estate assets-including real estate.
The social welfare office, pursuant to SGB XII, verifies whether the individual has available assets of their own. The estate under executorship is not considered freely disposable assets under social welfare law-because the disabled person cannot dispose of them. This precludes social welfare recourse against the estate. The Federal Court of Justice (BGH) has confirmed this legal principle in several decisions, most recently clarified by lower courts through 2025.
An important aspect: The disability will requires that the other siblings’ waiver of their statutory share be notarized. Otherwise, siblings could assert claims to their statutory share after the death, which would burden the estate under probate administration and destabilize the overall plan.
| Item | Legal Basis | Cost Estimate |
|---|---|---|
| Notarized will with disability provision | §§ 2100, 2197 BGB, GNotKG | €1,000-3,500 depending on estate value |
| Note regarding reversionary heirs in the land register | § 51 GBO | €100-300 land register fee |
| Annual compensation for the executor | DTVM recommendation | 0.5-1.0% of the estate value p.a. |
| One-time fee upon assuming office | DTVM recommendation | 1.0-1.5% of the estate value |
| Real estate management by the executor (annual) | Individual | €300-600 per year plus management fees |
| Increased exemption (heirs with disabilities) | Inheritance Tax Act § 13(1)(6) | Up to €890,000 (degree of disability) |
Source: Civil Code §§ 2100 et seq., 2197 et seq., Inheritance Tax Act (ErbStG), Court Fees Act (GNotKG), German Association for Inheritance Law and Asset Succession (DTVM), Bavarian Justice Portal, as of Q1/Q2 2026.
A special tax benefit: Under § 13(1)(6) of the Inheritance Tax Act (ErbStG), disabled heirs may claim an increased personal exemption under certain conditions. The increased exemption amount depends on the degree of disability and the age of the heir. In the case of a 100% degree of disability and complete loss of earning capacity, the exemption amount can rise to up to 890,000 euros-in addition to the regular kinship exemption. This calculation should be coordinated with a tax advisor specializing in inheritance tax.
The execution of a will involving real estate entails special requirements. The executor must manage the property: concluding and terminating lease agreements, commissioning maintenance, and performing WEG administrative tasks. They manage rental income in a special estate account. Annually, they must report to the probate court or the beneficiary. Major actions-particularly the sale of the property-require the approval of the probate court (Lauf an der Pegnitz Local Court).
A key point: The executor must continuously verify which distributions from the estate (e.g., rental income to the disabled person) do not jeopardize social assistance benefits. If the distributions exceed the amount permitted under social welfare law, there is a risk of losing state benefits. This requires close coordination with the responsible social welfare office.
Appointing a sibling as executor saves costs but carries the risk that the sibling may die, become ill, or be unable to fulfill the role. Professional executors (attorneys, tax advisors, and support organizations such as Caritas Mittelfranken or Lebenshilfe Nürnberger Land) offer continuity.
> For a realistic assessment of the property’s value-which is incorporated into the draft will and the executor’s fee calculation-the valuation tool from leadmarkt.ch provides a quick, data-driven basis.
A will for a person with disabilities that does not cover all details correctly can fail. The most common mistakes:
No waiver of the statutory share by siblings: Without a notarized waiver of the statutory share by the other children, they can assert these statutory share claims, which burden the estate under the TV. Social services could then access these claims.
Unclear distribution rules: If the will does not clearly stipulate under what circumstances the executor may make distributions, uncertainties arise. Social services will carefully examine whether such distributions would eliminate the need for social assistance.
Failure to name reversionary heirs: Without clear successor heirs, the estate will end up in an unclear situation upon the death of the disabled person. The successor heirs must be precisely named.
No substitute executor named: If the executor dies or becomes unable to serve and no substitute has been named, the probate court must appoint a new one-a time-consuming and uncertain process.
Lauf an der Pegnitz is a small town with approximately 26,000 residents in the Nürnberger Land district-known for its historic old town and the deep roots of its middle-class families. The region has several disability support organizations (Lebenshilfe Nürnberger Land, the Diakoneo Foundation with locations throughout the region), which can also be involved as executors or advisory partners in estate planning.
The competent probate court for testators in Lauf is the Lauf an der Pegnitz Local Court. In legal disputes regarding the validity of a disability will-such as in claims for a statutory share by other children-the Nuremberg-Fürth Regional Court is the competent court of first instance.
The notary district of Middle Franconia includes several notary offices specializing in inheritance law. It is advisable to choose a notary who works closely with social law advisors, as the disability will lies at the intersection of the German Civil Code (BGB) and Book XII of the Social Code (SGB XII). This interdisciplinary expertise is indispensable in drafting the will.
The disability will is well-recognized today, but case law continues to evolve. Social welfare authorities are constantly seeking ways to access estate assets under probate administration. A particular focus is on the question of whether a disability will that grants the disabled person extensive rights of use (e.g., rent-free occupancy of a property) still qualifies as a genuine special asset structure.
Current lower courts tend to confirm the Federal Court of Justice’s (BGH) line-as long as the executor actually controls the distributions and does not simply approve everything. An annual review of the distribution rules by an experienced advisor is therefore recommended.
The disability trust protects both the disabled child and the family’s assets. It is the logical solution to a systemic problem: without this arrangement, the child would lose either social assistance or the inheritance. With it, the child can retain both. The property remains as a managed special trust, and the rental income benefits the child.
A prerequisite is careful drafting by a notary. To determine the property’s value, we recommend obtaining a current appraisal in advance using the valuation tool from leadmarkt.ch-so that the executor’s compensation and tax parameters are based on realistic figures.
In a disability will, much revolves around the question: Which payments from the executor to the disabled person are permissible under social welfare law without jeopardizing entitlement to social assistance?
Basic rule under SGB XII: The disabled person may not freely dispose of the inheritance (this is ensured by the executor arrangement). Distributions by the executor for special needs are permissible if they supplement, rather than replace, social assistance benefits.
Typical permissible uses: special leisure activities (vacations, concert tickets), special assistive devices not covered by health insurance, and disability-accessible home modifications in the person’s own home.
Not permitted: direct cash payments in the amount of the standard social assistance rate, covering regular living expenses that the social welfare office would otherwise be responsible for.
The executor must always keep this limit in mind. In cases of doubt, they should seek information from the responsible social welfare office before making a distribution.
If a property is included in a will for a person with a disability and is rented out, rental income is generated, which the executor manages. This income is part of the estate assets under the executor’s control-it is not the personal assets of the person with a disability.
The TV may pay the disabled person regular amounts from this rental income that exceed the social assistance level. This is called the “supplementary benefit from the estate.” The social welfare office may only count these distributions toward social assistance if they are paid regularly and reliably-in the case of irregular, unpredictable distributions, the question of whether they count is often disputed.
Best practice: The TV maintains detailed records of all income and distributions, coordinates the distribution plan with the social welfare office in advance, and documents that the distributions meet special needs not covered by social assistance.
A disability will is established once-but life circumstances change. It is advisable to review and update the will every five to ten years.
What can change: The child’s degree of disability may change, which affects the increased inheritance tax exemption under Section 13 of the Inheritance Tax Act (ErbStG). Social welfare legislation may change-new SGB XII regulations may alter the calculation methods. The executor may be removed, fall ill, or die. The siblings may start families of their own, which complicates the succession of heirs.
Notaries in the Middle Franconia notarial district recommend reviewing the will at the latest when significant life circumstances change: the death of a parent, the divorce of a sibling, or the named executor moving away from the region.
The costs of having a will reviewed and amended by a notary in Lauf are manageable-significantly cheaper than a subsequent dispute over the validity of an outdated will. Parents who draft a will for a child with disabilities should therefore view it from the outset as a living document that actively adapts to and safeguards the changing life circumstances of their child and family.
Prepared by the my-home.de editorial team in collaboration with regional real estate analysts. Data as of: Q1/Q2 2026.
A disability will is a testamentary disposition that ensures a disabled child or a person in need benefits from an inheritance without losing their eligibility for social assistance. This arrangement utilizes the concept of prior and subsequent inheritance and permanent executorship.
This is because the inheritance does not belong to the disabled person and is not freely available to them, but is instead subject to the control of an executor. The disabled person receives only what the executor distributes-and that amount may not exceed the social assistance benefits. The social services agency can only access the heir’s personal assets, not the estate itself.
Yes. The property can be bequeathed to the disabled person as an interim heir, with the executor appointed for the duration of the estate. The executor then manages the property (e.g., by renting it out), and the rental income benefits the disabled person, provided that it does not displace social assistance.
Any individual or suitable organization (e.g., Caritas, Lebenshilfe) may be appointed as executor. This choice is crucial-the executor must act reliably for many years. Many parents initially choose a sibling but, as a precaution, name a neutral organization as an alternative.
Yes. The Federal Court of Justice (BGH) has ruled in several decisions that the “disability will” is valid and consistent with social welfare law (BGH, judgment of March 21, 1990, IV ZR 169/89, and subsequent decisions). This legal arrangement is now widely accepted, but it must be carefully drafted.
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Content researched and verified by the my-home.de expert network - specialized in real estate sales, valuation, and market analysis in Nuremberg, Fürth, Erlangen, Schwabach, and Roth.
Note on content
This guide article serves as general information about the real estate market in Nuremberg and the surrounding region. It does not replace individual tax advice, legal advice, or expert valuation in specific cases. For binding information, please contact a tax advisor, attorney, or certified appraiser.
Market data, prices, and statutory provisions may change at short notice. Despite careful research, we assume no liability for the accuracy, completeness, or timeliness of the content.
Article as of February 26, 2026
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