What is the difference between a will and an inheritance contract?
March 22, 2024 | 40,00 EUR | answered by Uwe Herrmann
Dear lawyer specializing in inheritance law,
my name is Jessica Kleine and I have a question regarding wills and inheritance contracts. I am currently faced with the decision of how to arrange my assets after my passing and I am unsure whether I should create a will or an inheritance contract.
The background is as follows: I am married and have two children. My assets mainly consist of a property and some valuables. My husband and I have not yet created a will or inheritance contract, and I am concerned about the future of my family in case something should happen to me. I want to ensure that my assets are fairly distributed among my relatives and that any potential disputes are avoided.
My specific question is: What is the difference between a will and an inheritance contract, and which option would be more appropriate in my case? What are the advantages and disadvantages of both options, and what legal aspects should I consider when making this decision?
I thank you in advance for your support and advice on this important matter.
Sincerely,
Jessica Kleine
Dear Mrs. Kleine,
Thank you for your inquiry regarding wills and inheritance contracts. It is understandable that you are concerned about the future of your family and want to ensure that your assets are divided fairly and without disputes among your relatives. Indeed, wills and inheritance contracts are two important instruments for documenting your last wishes and regulating the distribution of your assets.
A will is a written statement by a person in which they determine what should happen to their assets after their death. Here you can specify, among other things, who your heirs should be, which assets should pass to which individuals, and who should potentially act as the executor of the will. A will can be handwritten, notarized, or executed in front of witnesses.
An inheritance contract, on the other hand, is an agreement between at least two people in which their respective inheritance claims are defined. Unlike a will, an inheritance contract is binding and cannot be unilaterally changed. This means that the provisions made in the inheritance contract will apply even if the personal or financial circumstances of the contracting parties change.
In your case, as a married person with children and a significant amount of assets, both a will and an inheritance contract could be beneficial. A will offers you the flexibility to specify your last wishes individually and make changes if necessary. For example, you can establish specific conditions or legacies for certain individuals. An inheritance contract, on the other hand, provides you with a binding arrangement to ensure that your heirs receive your assets according to your agreement.
It is important to consider the individual circumstances and needs of your family when deciding between a will and an inheritance contract. In your case, an inheritance contract could help establish clear provisions and avoid potential disputes among heirs. A will, on the other hand, allows you to adapt to changes and adjust your last wishes flexibly.
It is advisable to seek advice from an experienced estate lawyer to discuss the advantages and disadvantages of wills and inheritance contracts in detail and find a tailored solution for your specific situation. A lawyer can also inform you about legal aspects to consider when creating a will or inheritance contract, such as formal requirements, compulsory portion claims, or tax aspects.
I hope that this information has been helpful to you and I am available to answer any further questions you may have.
Best regards,
Uwe Herrmann
Estate lawyer
