Why you cannot fully disinherit your children in Germany

If you are moving to Germany from a common-law country such as the United States, Canada, Australia, or the UK, one of the first shocks in German inheritance law is learning that you cannot simply leave your estate to whomever you wish. German law imposes a compulsory share, called the Pflichtteil, that guarantees close family members a fixed minimum portion of your estate—regardless of what your will says.

Who Is Entitled to the Pflichtteil?

Not all relatives have a right to the compulsory share. The Pflichtteil is reserved for a narrow circle of close family members. Your children (including adopted children) and their descendants (grandchildren if a child has predeceased you) are always entitled. Your spouse or registered civil partner is also protected. If you die without children, your parents retain a Pflichtteil claim. Notably, siblings do not have this right—even if you have no children, your siblings cannot claim the compulsory share, though they may inherit under intestate succession if no closer relatives exist.

Under German law, these entitled relatives are protected by Sections 2303 and onward of the Bürgerliches Gesetzbuch (BGB), the German Civil Code. The principle reflects a deep-rooted belief that a testator should not be able to completely disinherit close family, even through an explicit will.

How Much Is the Pflichtteil Worth?

The compulsory share is calculated as exactly half of what that heir would receive under intestate law (gesetzliche Erbfolge) if you died without a will. If you have one child and a spouse, for instance, under intestate succession the spouse would receive one quarter of the estate and the child would receive three quarters. That child's Pflichtteil would thus be half of three quarters, or 3/8 of the estate, payable in cash.

The amount is calculated based on the net value of your estate at the time of death—that is, your total assets minus debts and funeral costs. The calculation uses the estate value as it existed on the date of your death, not earlier.

The Pflichtteil Is a Cash Claim, Not a Share of Assets

One critical feature that confuses many expats: the Pflichtteil is a monetary claim against the estate, not a right to inherit specific property. A disinherited child cannot demand a particular house, investment portfolio, or business. Instead, they hold a debt claim against whoever inherits those assets. The heirs are legally obligated to pay the cash amount.

This creates a practical problem that many overlook. If your estate consists mostly of real estate or an illiquid family business, your heirs may be forced to sell property to raise the cash needed to satisfy compulsory share claims. This is one reason family business succession in Germany often involves a Pflichtteilsverzicht (waiver)—the owner wants to preserve the business without liquidating assets to pay disinherited family members.

Gifts Given Within 10 Years Are Clawed Back

One of the most aggressive protections for forced heirs is the Pflichtteilsergänzung (supplementary compulsory share). If you attempt to reduce your estate by making gifts to third parties or even to one child while excluding another, the excluded child can demand that those gifts be added back into the estate for calculation purposes.

The claw-back applies only to gifts made within the 10 years before your death. However, the value decreases on a sliding scale: a gift made one year before death counts at 100 percent of its value; a gift made two years before counts at 90 percent; three years before at 80 percent, and so on, declining by 10 percent per year until it reaches zero after 10 years have passed. This is designed to prevent deathbed gifts and aggressive estate minimization.

Example: You give a house worth €300,000 to one child five years before you die. A disinherited second child can claim a Pflichtteilsergänzung. The house value added back to the estate calculation would be 50 percent of €300,000 (since five years have passed), or €150,000. The compulsory share claim would be based on this augmented estate value.

Waivers: The Legal Way to Avoid Compulsory Share Claims

The primary legal tool to eliminate a Pflichtteil claim is the Pflichtteilsverzicht (waiver of compulsory share). This is a binding contract in which a family member agrees, in advance, not to claim their compulsory share after your death. It is a powerful planning tool, especially for family business succession.

However, the waiver must be notarized. You cannot simply hand your daughter a letter waiving her rights; the agreement must be executed before a German notary (Notar) with both parties present (though one party may be represented by a proxy). The notary must register the waiver to ensure it is legally binding.

In nearly all practical cases, a Pflichtteilsverzicht involves compensation—some payment or benefit to the family member in exchange for giving up their future claim. This compensation is often a one-time sum, a life insurance payout, or a tangible asset. The compensation itself may have tax implications (e.g., gift tax), so this should be discussed with a German tax advisor (Steuerberater) and the notary before proceeding.

When Is a Waiver Useful?

A common scenario is the Berlin will (Berliner Testament), a joint will between spouses in which each appoints the other as sole heir and then designates the children as final heirs after both parents die. The children's Pflichtteil is triggered only after the first spouse dies. If a family business owner wants to pass the business to one child without forcing liquidation to pay Pflichtteil claims, a waiver agreement with the other children (compensated fairly) ensures smooth succession.

Waivers are also common in farming families or in cases where the testator wishes to leave the majority of the estate to the spouse, without the children claiming compulsory shares during the surviving spouse's lifetime.

Can You Completely Disinherit Someone?

In rare, extreme cases, yes. German law does allow complete disinheritance of a close relative if that person has committed serious criminal offences or other grave wrongdoing against the testator. Under Section 2333 of the BGB, you may withdraw the compulsory share if the heir has attempted to harm your life, committed a serious intentional crime against you or a close family member, or been convicted of a prison sentence of at least one year for an intentional felony. The person must also have been deemed worthy of disinheritance by the testator.

However, family estrangement, disagreement, or even neglect are not grounds for disinheritance under this law. A parent who has a difficult relationship with a child cannot use the Pflichtteil exemption. The bar for complete disinheritance is intentionally very high.

Practical Steps for Expats and Long-Term Residents

If you own property or significant assets in Germany, or if you have German heirs or a German spouse, you should address the Pflichtteil in your estate plan. Here are practical steps:

• Consult a German inheritance lawyer (Erbrecht-Anwalt) or notary who can explain how German law applies to your situation. If you are a non-German citizen, your home country's inheritance laws may also apply to some assets, creating complexity.
• If you want to waive compulsory shares for any heirs (for instance, to preserve a family business), arrange a Pflichtteilsverzicht with a German notary. This must be done during your lifetime.
• Keep careful records of any gifts made in the 10 years before your expected death, as these may be clawed back.
• Consider a Berlin will or other joint will structure with your spouse if applicable, but be aware that it may trigger compulsory share claims after the first spouse's death.
• If you own property in multiple countries, clarify in your will which jurisdiction's law applies to which assets. You may also elect German law to apply to your entire estate if you are a German citizen.
• Review your will periodically, especially after major life events (marriage, divorce, birth of children, acquisition of significant property) to ensure it reflects German law requirements.

Where to Seek Help

In Germany, inheritance matters are handled by notaries (Notare) who are appointed by the state and carry significant legal authority. You can find a local notary through the German Notary Association portal (Notar-Verband) or by asking at your city's Bürgeramt (citizen's office). Notaries can draft your will, execute waivers, and explain the implications of the Pflichtteil.

For more complex matters—especially if you own assets in both Germany and another country, or if family disputes are likely—hire a lawyer specializing in inheritance law (Erbrecht-Anwalt). Many large German law firms have English-speaking specialists. If you are unsure about tax implications of lifetime gifts or waivers, consult a German tax advisor (Steuerberater) who understands inheritance tax (Erbschaftsteuer).

The Pflichtteil is a defining feature of German inheritance law that surprises many expats from common-law countries. Unlike the freedom to disinherit at will in the US or UK, German law prioritizes family protection. By understanding how the compulsory share works, how gifts are clawed back, and how waivers can be structured, you can plan your estate effectively and avoid costly family disputes after your death.