What legal aspects do I need to consider in an international inheritance case?
November 7, 2022 | 60,00 EUR | answered by Albrecht Zellmann
Dear Sir/Madam Lawyer,
I am reaching out to you with a question regarding an international inheritance case that I am facing. My father recently passed away and has left assets in both Germany and the USA. As his only daughter and heir, I am now faced with the challenge of settling the inheritance matters in both countries.
In Germany, inheritance law follows the so-called "Erbfallprinzip", where the right to inherit is determined on the day of the deceased's death. In the USA, however, the "Probate System" is followed, where the inheritance is only distributed after a court review. These different legal frameworks make it difficult for me to correctly handle the inheritance case and assert the inheritance rights in both countries.
I am also concerned about potential tax consequences in an international inheritance case. I wonder whether I will have to pay inheritance taxes in both Germany and the USA, and how high these taxes could be. Additionally, I am unsure whether I need to conduct separate probate proceedings in both countries and how I can ensure that all heirs receive their fair share.
Therefore, my question to you is: What legal aspects do I need to pay close attention to in an international inheritance case? Are there any specific procedures or regulations that can assist me in smoothly handling the inheritance process in both Germany and the USA? How can I minimize potential tax risks and ensure that all heirs are treated fairly?
I thank you in advance for your support and expertise in this complex matter.
Sincerely,
Alice Winterstein
Dear Mrs. Winterstein,
Thank you for your inquiry regarding an international inheritance case that you are facing. It is understandable that the different legal frameworks in Germany and the USA make it complicated to handle the inheritance case correctly and to assert inheritance claims in both countries. I am happy to provide you with an overview of the legal aspects that you should consider in an international inheritance case, as well as possible procedures or regulations that can help you smoothly handle the inheritance process.
First of all, it is important to note that in an international inheritance case, international private law applies. This means that the inheritance law of the country where the deceased had their last habitual residence is decisive. In your case, it would need to be clarified whether your father had his last habitual residence in Germany or the USA in order to determine the applicable inheritance law.
With regard to the tax consequences in an international inheritance case, it is important to know that Germany and the USA have a double taxation agreement to avoid heirs being taxed twice in both countries. Generally, heirs must pay inheritance tax in the country where the deceased had their last habitual residence. Therefore, it is advisable to seek advice from an expert in international tax law to minimize potential tax risks.
Regarding the probate proceedings, it may indeed be necessary to conduct separate procedures in Germany and the USA, as the respective legal systems have different requirements. It is important that all heirs receive their fair share, so I recommend consulting an experienced attorney in both Germany and the USA to ensure that the inheritance process is fair and transparent.
In conclusion, I want to emphasize that in international inheritance cases, it is advisable to seek professional legal advice early on to avoid potential problems and successfully handle the inheritance case. I am at your disposal to support you in this complex matter and provide you with my expertise.
Best regards,
Albrecht Zellmann
Attorney at Law specializing in International Law
