Last will and testament: Planning your estate in good time

What is a last will and testament?

With a last will and testament, you decide for yourself who inherits your assets, whether money, property, art or other valuables, after your death. It follows what is known as testamentary succession and can depart fromintestate succession.

Even if you deliberately leave out a close relative, theircompulsory portion entitlement still applies. Two forms of last will and testament are available to you: The will and the inheritance contract.

When does a last will and testament make sense?

Anyone who leaves neither a will nor an inheritance contract is subject to intestate succession, which does not always reflect their actual wishes. Those wanting to ensure that their own wishes apply after death should not avoid drawing up a last will and testament.

It is particularly worthwhile in the following situations:

• With a large or diverse estate

• When there are many legal heirs

• To provide for people who would otherwise receive nothing under intestate succession, such as unmarried partners or stepchildren

• To prevent inheritance disputes through clear, unambiguous arrangements

Who can draw up a last will and testament?

Any adult in Germany can write a will or have an inheritance contract drawn up. If this is done before a notary, it is also possible to make a legally valid will from the age of 16. The precondition is that the person has testamentary capacity at the time of drafting.

Will or inheritance contract: What are the differences?

For your last will and testament, two paths are open to you: The will and the inheritance contract. Both pursue the same goal but differ in form, flexibility and binding effect.

The will is the simpler and more flexible option. It is valid even without a notary, provided it is written entirely by hand and signed personally. It is also strongly recommended that it includes the place and date. A will can be changed or revoked at any time.

Alongside the individual will, there is the joint will, which spouses draw up together. A special form of this is the Berlin will: in it, spouses name each other as sole heirs, even if there are children. The children inherit only after the death of the second partner.

The inheritance contract is only valid if it has been notarised. It forms a contractual binding between the parties. Changes are only possible with the consent of all parties involved and require renewed notarisation. This involves notary fees and, where applicable, the cost of prior legal advice.

When does a will make sense?

For most private estates, a will is the right choice. It can be drawn up at home without a notary, is legally valid through handwriting and signature, and offers maximum flexibility: You can change it, add to it or replace it with a new will at any time.

If you want to make sure your will is found after your death, you can lodge a handwritten will yourself, or a notarial will via a notary, in official safe custody at the local probate court (Nachlassgericht) for a small one-off fee.

When is an inheritance contract the right choice?

In certain situations, the inheritance contract is the more secure and appropriate solution. This applies in particular if you want to make the inheritance subject to specific conditions, for example, if a beneficiary should only receive their inheritance if they have cared for you beforehand.

The inheritance contract is also often the better choice for business succession. It can, for example, include a waiver of the compulsory portion, which protects the liquidity and continuity of the business.

The main disadvantage: An inheritance contract is less flexible than a will. Changes require the consent of all parties to the contract and must be notarised again.

If you are planning to transfer property, alifetime gift can be a tax-efficient addition, for example to make optimal use of the allowances available underinheritance tax.

Drawing up a will: Checklist for a legally valid will

For your will to actually be valid when it matters, several formal requirements must be met. This checklist gives you a quick overview:

The more heirs or legatees there are, and the larger and more extensive the estate, the more important precise wording becomes. This applies especially when business assets are to be passed on alongside private assets.

Conclusion: Shaping your estate yourself with a last will and testament

A last will and testament ensures that your wishes are carried out after your death. Which form is right for you depends on the size and nature of your estate and the number of heirs.

The will is convincing through its simplicity and flexibility, ideal for most private estates. The inheritance contract offers greater certainty and is particularly suitable for complex asset situations or where the inheritance is to be made subject to conditions. Either way, you create clarity for your loved ones and help prevent inheritance disputes.