Supplement to the Statutory Share: An Explanation of the 10-Year Period

Anyone who gifts their real estate assets well in advance of the inheritance to prevent inheritance disputes or save on taxes should keep one thing in mind: The law protects beneficiaries of a compulsory share through the right to a supplementary compulsory share under Section 2325 of the German Civil Code (BGB). This right applies even if the gift was made years ago-it is only after ten years that the real estate assets are fully excluded from the calculation of the compulsory share. For property owners in Schwabach planning a transfer, this timeframe is crucial and is often underestimated.

Legal Basis: Section 2325 of the German Civil Code (BGB) and the phasing-out model

The claim for a supplementary statutory share under § 2325 BGB supplements the regular statutory share claim (§§ 2303-2306 BGB) to include gifts made by the decedent during their lifetime. Without this provision, any decedent could simply bypass statutory heirs through gifts-the law aims to prevent this.

Section 2325(3) BGB codifies the so-called reduction model: Gifts lose 10 percent of their creditable amount for each year that has elapsed since the gift was made. Specifically, this means:

• Gift made in the year prior to death: 100% credit
• Gift made 2 years prior to death: 90% credit
• Gift 5 years before death: 60% credit
• Gift 9 years before death: 10% credit
• Gift 10+ years before death: 0% credit

For real estate, the time of performance is the moment of transfer of ownership in the land register-not the conclusion of the gift agreement, nor the handover of keys. The Schwabach Land Registry (Schwabach Local Court) maintains the relevant records. Therefore, if a deed of gift was notarized in December 2016 but the transfer of title did not occur until March 2017, the 10-year period will not have fully elapsed until March 2027.

The value of the gift for the calculation of the statutory share is determined by the value at the time of the gift, but adjusted for any increase in value of the property in the meantime. This means: If a property has increased in value since the gift was made, the higher value is used for the calculation of the statutory share. This can result in even a gift made 8 years ago still triggering significant claims for a supplementary statutory share.

Figures and Statutory Share Ratios for 2026

The statutory share ratios are set by law and are independent of the property value:

Heir	Legal Share	Statutory Share (Half)	Inheritance Tax Exemption
Spouse (community of accrued gains, children present)	1/4	1/8	€500,000
Child (one parent deceased, 2 children)	1/2 per child	1/4 per child	€400,000
Child (one parent alive, 2 children)	1/4 per child	1/8 per child	€400,000
Grandchild (parent predeceased)	Parent’s share	Half of the inheritance	€200,000
Parents (no children)	1/2 per parent	1/4 per parent	€100,000

Source: BGB §§ 2303 ff., 2325, ErbStG § 16, Bavarian Justice Portal, as of Q1/Q2 2026.

For a single-family home in Schwabach with a market value of €450,000 and two children entitled to a compulsory share, this means: Each child is entitled to a compulsory share of €112,500 (1/4 of the estate value). If there is a gift of 200,000 euros (e.g., early transfer of another apartment) that occurred only 4 years ago, 70% of this amount-140,000 euros-is added to the estate. The statutory share base increases to 590,000 euros-the statutory share per child rises to 147,500 euros.

Practice: Strategic Transfer and Notarial Structuring

In the advisory practice at the notary’s office in Schwabach (Middle Franconia notarial district), the 10-year period is a central planning element. Those who start early-ideally in their mid-50s or early 60s-can gradually transfer real estate assets and reduce the basis for the compulsory portion supplement year by year.

Important practical rules for calculating the time limit:

The time limit does not begin until full performance has taken place-the transfer of all economic benefits and the registration of the title in the land registry. This is the decisive point in time, not the date of notarization.

Reservation of a right of residence or usufruct: According to prevailing Federal Court of Justice (BGH) case law (Case No. IV ZR 262/18 and subsequent decisions), the 10-year period for a reservation of usufruct does not begin until the usufruct ceases-that is, often only upon the donor’s death. This is a serious pitfall for anyone making a gift with a reservation of usufruct.

The situation is less clear-cut with regard to a right of residence under the law of obligations: Case law increasingly distinguishes between a complete economic reservation (as with usufruct) and a limited right of use. A pure right of residence without the right to rent out the property is not considered by some courts to prevent the start of the limitation period-but the legal situation is not uniform.

> A current valuation of your property in Schwabach is provided by the valuation tool from leadmarkt.ch-indispensable for calculating realistic statutory share quotas and strategic planning advice.

Value Appreciation and Calculation of the Statutory Share for Real Estate

An important and often overlooked aspect: In the case of real estate gifts, the valuation for the claim to a supplementary statutory share is based on the value at the time of inheritance if the value has increased, or on the gift value if the value has decreased. The principle of favorability applies to the beneficiary of the statutory share.

Specifically: A house in Schwabach that was gifted in 2018 for 250,000 euros but is worth 380,000 euros in 2026, is included in the calculation of the compulsory portion supplement at 380,000 euros (pro-rata after reduction)-provided the 10-year period has not yet fully expired.

This means: Real estate gifts in a rising market (as in the Nuremberg metropolitan region over the past 15 years) tend to result in higher compulsory portion supplement consequences than expected at the time of the gift. Conversely, market declines (such as in 2022-2024 in some segments) can lower the compulsory portion base.

Strategies for Minimizing the Compulsory Portion Supplement Base

For property owners in Schwabach who wish to transfer real estate assets, there are several strategic approaches:

Gradual gifting over several years: Instead of transferring a property all at once, shares can be transferred-each with a new start date for the period. In the case of a condominium, co-ownership shares can be transferred gradually (requires notarization for each step).

Combination with compulsory portion waiver agreements: If the beneficiaries of the compulsory portion waive their claims to the compulsory portion supplement before a notary (Section 2346(2) of the German Civil Code), the compulsory portion risk is eliminated regardless of the time limit. However, this requires the voluntary cooperation of all beneficiaries.

Early Transfer Without a Right of Usufruct: Anyone who waives the right of usufruct and instead agrees to a contractual fee avoids the time limit issue associated with usufruct. The donor receives a monthly usage fee instead-while this is treated differently for tax purposes, it reliably triggers the 10-year time limit.

Asserting the Claim for a Supplement to the Statutory Share

If a beneficiary of a statutory share wishes to assert their claim for a supplement, they must first request information regarding all gifts made in the last 10 years (Section 2325(1) BGB in conjunction with Section 2314 BGB). The right to information applies to the heirs. They must disclose all transfers relevant to the gift.

Disputes regarding claims for a supplementary statutory share must be brought before the Schwabach Local Court (for amounts up to 5,000 euros) or the Nuremberg-Fürth Regional Court (for amounts above that). The statute of limitations for the claim for a supplementary statutory share is 3 years from the date of knowledge of the inheritance and the violation of the statutory share (Sections 195, 199 BGB).

Local Nuance: Schwabach and the Real Estate Profile of the Small Town

Schwabach, south of Nuremberg, is one of the few Bavarian towns with its own municipal charter outside the major metropolitan areas. In 2026, the real estate market there shows more stable but lower prices than in Nuremberg or Erlangen: single-family homes cost €350,000-550,000, and condominiums €2,800-3,800 per square meter.

The Schwabach Local Court, as the competent probate court, handles disputes over statutory shares in the context of family real estate transfers. Disputed claims for supplementary statutory shares are first brought before the Schwabach Local Court following an unsuccessful out-of-court settlement; for amounts in dispute exceeding 5,000 euros, the case proceeds to the Nuremberg-Fürth Regional Court.

The tradition of solid ownership by craftsmen and small business owners in Schwabach-a city known for its goldsmiths-means that many properties remain in family hands and are transferred across generations-making claims for supplementary compulsory portions a real practical issue.

Conclusion for Property Owners in Schwabach

The 10-year period is not an insider tip, but a legal reality-and it contains significant pitfalls, particularly regarding the reservation of usufruct. Those who transfer real estate in a timely and strategic manner can systematically reduce the basis for the compulsory portion supplement over the years. Early planning with a notary who has an eye on both civil law and the tax consequences is crucial.

For the valuation-the starting point of any planning-we recommend taking a look at the valuation tool from leadmarkt.ch-this provides all parties with a common numerical basis for consultation and potential negotiations.

Compensatory Payment for the Statutory Share and Advance Gifts Among Siblings

Another aspect that is frequently relevant in Schwabach inheritance cases: If parents have given different amounts to different children during their lifetime, the question arises of the obligation to compensate among siblings under § 2050 BGB and that of the claim for a compensatory payment for the statutory share.

If Child A received a house worth 300,000 euros six years ago, while Child B received nothing, Child B can claim not only the regular statutory share upon the parent’s death but also a claim for a statutory share supplement due to the six-year-old gift to Child A (40% of 300,000 euros = 120,000 euros supplement base). This significantly increases Child B’s statutory share.

The equalization under Section 2050 of the German Civil Code (BGB) serves a different purpose than the claim for supplementation of the statutory share: Equalization concerns the distribution of the estate among the heirs themselves. The claim for supplementation of the statutory share, on the other hand, concerns the claim of the beneficiary of the statutory share against the heirs due to gifts made to third parties. Both mechanisms can operate concurrently.

Documentation of Gifts: Why It’s Worth It

For property owners in Schwabach who have already made gifts, complete documentation is important:

All notarized gift agreements, including the date of the land registry transfer, should be recorded in a summary. The annual value of each gift (according to the German Valuation Act) should be noted, as it is decisive for the subsequent calculation of the statutory share. Any consideration in return (care obligations, usage fees) should be documented, as they reduce the nature of the gift.

This documentation helps heirs respond transparently to questions from siblings entitled to a statutory share in the event of inheritance-and prevents years of disputes over long-forgotten transfers.

When the claim for a statutory share supplement is used tactically

In practice, the claim for a supplementary statutory share is not only a protective right for disadvantaged siblings-it is also used tactically. If a child entitled to a statutory share waits until the inheritance is settled and then reviews the history of gifts made over the past ten years, this can trigger substantial amounts that the beneficiary child (or the heirs) must pay.

Especially in Schwabach, where many properties are transferred within the family without professional guidance, this results in retroactive claims that no one anticipated. A property was transferred to one child in 2019 for “little money”-the other child is now, four years after the inheritance, asserting their claim for a supplementary statutory share. The deadline for asserting this claim is 3 years from the date of becoming aware of the gift (Section 2332 of the German Civil Code), up to a maximum of 30 years after the inheritance.

For parents who transfer their real estate during their lifetime, this means: Early, clear, and notarized arrangements protect everyone involved. The notary can conclude agreements waiving the right to a compulsory share with all parties involved-thereby precluding any future claims. These agreements cost money, but they are less expensive than a years-long inheritance dispute.

---

Prepared by the my-home.de editorial team in collaboration with regional real estate analysts. Data as of: Q1/Q2 2026.