Tax returns: Students, pensioners, professionals

Here you’ll find everything you need to know about filing taxes in the most popular and helpful books and publications. Whether it’s instructions or tips and tricks on how you can save even more, we have a book for every question.

Tip! Overview Taxes XXL

Taxes are often a vexing topic, especially in Germany. Wage tax, value added tax, real estate transfer tax and much more: it is not easy to keep track of everything. But if you’re not interested in employing a tax consultant, who can be quite expensive, you need to get to grips with the subject of taxes. We want to help you with that! Here you will find an overview of guides as well as book and video tips on the subject of taxes. Whether we introduce you to individual types of German taxes or you watch a video on the subject of tax returns, all your questions about German taxes will be answered here.

• Book & Video Tips Overview: Taxes

Find a tax consultant: near you

Are you still looking for the right tax advisor in your area? Then take a look at our lists: We have compiled the best-rated tax consultants for you for almost every city in Germany, where you should always receive good advice. You can find more information about tax advisors in your area here.

Konz: The workbook for the tax return

Ratings: 4.6 / 5.0 (224 ratings)

The tax return is a tiresome topic for all employees, self-employed and freelancers, who fight the battle with the forms year after year. With the Konz guide to the tax return you are also perfectly positioned for the tax return. In this book, the reader learns the best tricks, how he can get the most out of his tax return and thus save a lot of money.

• Buy at Amazon

Tax lexicon of the basics: beginners and advanced learners

Application: 4.0 / 5.0 (121 applications)

This tax encyclopedia of basics gets to the heart of difficult subject knowledge in a simple way. It enables you with the help of good explanations and practical examples a

n (relatively) easy entry into the complex world of taxes.

• You want to finally know and understand how the tax system works in real life?
• In your search for helpful information you come across thousands of technical terms that confuse you?
• If you look up a technical term (online or encyclopedia) are in the definition again umpteen technical terms that you do not understand?
• Even if you understand the definition, you don’t know what it’s for?
• Things are described with no “hands on” example?
• Buy at Amazon

Konz: 1000 completely legal tax tricks

Ratings: 4.4 / 5.0 (171 ratings)

“Konz. 1000 completely legal tax tricks” – the standard work under the tax councellors and the guarantor for highest tax refunds of the tax office.
The completely revised edition contains many new tips and tricks for the tax return. With the revised Konz you get the tax knowledge that will make you more money on your tax return, according to the motto: More knowledge. More money. Konz.

• Buy at Amazon

Save taxes for employees

Ratings: 3.8 /5.0 (26 ratings)

Far too many hard-working people don’t file a tax return because it may seem too complicated or time-consuming. In doing so, these people often give away good money. This doesn’t have to be the case. Preparing an income tax return for employees is not as extensive and time-consuming as many people think and is really worthwhile.
The Federal Statistical Office published statistics for the 2013 tax year in a press release in 2017, according to which taxpayers who filed an income tax return with the tax office could expect an average tax refund of 935 euros.
With the right knowledge and a few tricks, everyone can do a bit more. A tax advisor is not necessary for this. With the guide from this book

EVERYONE can get the MAXIMUM tax refund for themselves.

• Tips and tricks for dealing with the tax office
• All possible tax arrangements for employees
• The most important income-related expenses explained simply
• Important tips and tricks on income from capital assets
• Tips and tricks for special expenses
• Tips and tricks on extraordinary burdens
• Tips and tricks for tax relief
• Tips and tricks for considering your own children in your taxes
• Explanation of how income tax is calculated
• Instructions for submitting the tax return via Elster Online
• Tips and tricks before the tax return and after the tax assessment
• Maximum tax refund
• Buy at Amazon

The tax return workbook for pensioners and retirees

• Rating: 4.2 / 5.0 (80 ratings)

With the guidebook “Konz. The tax return workbook for pensioners and retirees” you will be fit for all tax questions and get the best tax tips…. This workbook offers a reliable guide to tax returns and answers questions such as “When do you have to pay tax as a pensioner?” or “What allowances and reductions are there for pensioners and retirees?”. With many tax-saving models and the best tips for dealing with the tax office, according to the motto “More knowledge. More money. Konz”.
You can obtain even more knowledge about tax returns with these editions: “Konz. 1000 ganz legale Steuertricks” and “Konz. The tax return workbook”.

• Buy at Amazon

Tax guide for real estate investors

Rating: 4.3 / 5.0 (233 ratings)

The ultimate tax guide for private investments in residential real estate. Secure maximum tax advantages through superior knowledge!

• Maximum recognition of income-related expenses
• Realization of tax-free capital gains
• Tax advantages for listed properties
• Holiday real estate at home and abroad as an investment property
• Inheritance and gift tax (tax-optimised transfer to spouse & children)
• Bonus material: Excel tool for calculating return, financing costs and cash flow
• Buy at Amazon

Further links

We have more helpful video and book lists for you on topics that might interest you. Below are some helpful links for you.

Retirement videos: Private or company? Tips & possibilities

The topic of old-age provision is one of the most important issues Germans are concerned about. Already at a young age, one is made aware of the need to provide for later. But how exactly do I do that? When do I start with the old-age provision? Which mistakes should I avoid? Where can I get tips? And why do I need a pension at all? We answer all these questions and more here.

• Video tips on the subject of old-age provision
• Book recommendations on the subject of old-age provision

Buying Property: Instructions, Process, Tips, Checklists & Investments

With our book and video list on buying real estate, you can’t go wrong with your next real estate purchase. Our book tips cover all topics from the right inspection to the closing and the possible resale. What do you have to pay attention to? How do you finance your purchase? How do you evaluate a property? And how do you conclude the contract? You will find the answers here.

• Video tips on buying real estate
• Book recommendations on the subject of buying real estate

Back to overview Taxes XXL: Tax return, tips & more

Here you can return to the overview of book and video recommendations on the subject of taxes in Germany. Tax forms, tax rates, tax returns and much more will be explained to you by experts and made understandable. In this XXL guide you will find information and articles on the most diverse questions on the subject of taxes.

• Book & Video Tips Overview: Taxes

Tax return: tips and tricks to avoid mistakes

Here you’ll find everything you need to know about filing taxes in the most popular and helpful videos and publications. Whether it’s instructions or tips and tricks on how to save even more, we have a video to answer every question.

Tip! Overview Taxes XXL

Taxes are often a vexing topic, especially in Germany. Wage tax, value added tax, real estate transfer tax and much more: it is not easy to keep track of everything. But if you’re not interested in employing a tax consultant, who can be quite expensive, you need to get to grips with the subject of taxes. We want to help you with that! Here you will find an overview of guides as well as book and video tips on the subject of taxes. Whether we introduce you to individual types of German taxes or you watch a video on the subject of tax returns, all your questions about German taxes will be answered here.

• Book & Video Tips Overview: Taxes

Find a tax consultant: near you

Are you still looking for the right tax advisor in your area? Then take a look at our lists: We have compiled the best-rated tax consultants for you for almost every city in Germany, where you should always receive good advice. You can find more information about tax advisors in your area here.

Why do a tax return?

What is the difference between gross and net? Why does one do a tax return? Why is a dog more expensive in the city than in the country? What types of taxes are there? The next video will answer all these questions and more.

The income tax

Once a year, the income tax return is due for entrepreneurs. In this video, you’ll learn the best way to do this and how to prepare it correctly.
– What is the income tax return?
– What is the difference between income tax and payroll tax?
– What are the deadlines for income tax?
– What are the basic principles of income tax?
– What are deductible business expenses for business owners?
– How can you calculate the amount of income tax?
– What help is there for the income tax return?

Do your own tax return

You want to make a tax return, save yourself unnecessary effort and get tips for whom a tax return is worthwhile, what you should pay attention to, what deadlines there are and what documents you need at all? all this and more, you will learn in this – so good luck!

Complete one’s tax return

Is it really possible to do and complete a tax return in under 15 minutes? The following video shows you how easy it is to fill out a tax return.

Free contributions and lump sums

Saving taxes can sometimes be so easy if you know the right lump sums and tax allowances and that’s exactly why we show you the most important ones so that your tax return is a real success and you get as much as possible back from the tax office!

Tips and tricks

Not done your tax return yet? Then get going! We’ll show you how you can save up to 1,000 euros with simple tips. And don’t worry: the tips are very simple and can be implemented quickly.

6 completely legal tax tricks with practical examples

How can you legally deduct a lot of money from your taxes? It’s simple: watch the following video and follow the six legal tax tricks.

Tax return error

There are many things you can do wrong in a tax return and the bad thing is, usually each of these mistakes costs you money or you can even be held liable for it – which 8 mistakes are the most common and how to avoid them, we show in this video. Unfortunately, taxes and tax returns barely feature in our education system and this is despite the fact that they affect us all in some way. Because of this, there are many mistakes that are made over and over again. Some of these mistakes are common and that’s what we want to change.

Late tax return: consequences and penalties

The 31.07. of a year is now the deadline for submitting the tax return for all those who are obliged to submit. But not always everything goes according to plan in life and villeicht still missing documents, the accounting is not ready or you just have not found the time for it – what consequences this can have and what you can do before, you learn in this video! The good news first…. Because the mentioned deadline is actually only valid for all those who have to file – those who belong to the larger group of people who file voluntarily even have four whole calendar years retroactively!

Doing your tax return correctly as a student

A tax return as a student? That can really pay off! Even if you don’t have a job yet. The video explains how it works and what all the stuff about “tax deductions”, loss carry-forward, income-related expenses or special expenses means.

Tax return student: tutorial

A tax return can be worthwhile for many people, but one group can get particularly high tax benefits, namely students. In the years of study, sometimes several thousand euros in expenses come together. But a large part of the costs are tax deductible and a student can in many cases get a decent amount refunded by the tax office in the context of his tax return.

Seminars for students on the subject of tax returns

I’m sure you’ve all seen them: those ads for tax courses that promise you that you can get a lot of money back from your studies. Keyword: Tax return for students. What is it all about? A quick search online has already revealed: Behind the courses is the financial service provider MLP. So why is a private company offering free courses on how to get your taxes back from your studies?

Tax return for self-employed and small businesses

A tax return is already a closed book for most employees … but for self-employed people in particular, there are a few more challenges and questions. Many small business owners and self-employed people rightly ask themselves things like:

• When do I have to file a tax return?
• What documents do I need for a tax return?
• What is the structure of a tax return for the self-employed ?
• Does it make sense to file a tax return as a small business owner?
• You can find the answers in the video: Introduction tax return self-employed and small business

Tax return: small business

Finally relief and more tax benefits for small business owners – this was the news at the beginning of 2020 – and as so often with changes in the law, this must first be proven in practice – in this video we explain to you how the small business regulation has improved this year and how you can benefit from it.

Tax return for pensioners

More and more pensioners in Germany have to file a tax return. There are some important points to consider, which are, you will learn in this video. Due to legal changes, the number of pensioners who have to file a tax return is growing – many are not even aware of this. In addition, more and more pensioners are also working part-time and earning money as a result, which means they may be paying tax, some of which they can reclaim. The two main points of tax for pensioners are: The basic allowance and the pension allowance. What these two allowances mean and how they affect the tax return as a pensioner is explained in this video.

Tax return pensioner: instructions

Especially for people who have not yet made a tax return during their working life and now have to dedicate themselves to this task for the first time as a pensioner, this is particularly difficult. But even experienced pensioners have to consider a few points when filing their tax return. With the right information, however, you can save yourself a lot of time – which is why we would like to provide this brief guide.

Tax return for young professionals

It pays to file a tax return. On average, employees get around 1,000 euros back when they file a tax return. Our video shows how easy it is for young professionals to get money back from the tax office with their first tax return.

Related Links about the topic Taxes & Financing

You haven’t learned enough yet? We have covered many areas around the topic of tax return and Co. for you with our video tips. For example, areas such as: Real Estate Financing, Renting Property, Finding the Right Realtor, Passive Income through Real Estate and much more. Take a look around and become a real estate professional!

Real estate financing explained

You want to buy a property but don’t know how to finance your dream? Terms like loan, interest, credit, repayment or building society contract only raise more questions for you? Here you will find all the important information on the subject of real estate financing: from financing with equity to financing without equity to applying for a loan, we cover all the important topics!

• Video tips on the subject of real estate financing
• Book recommendations on the subject of real estate financing

Buy property

With our book and video list on buying real estate, you can’t go wrong with your next real estate purchase. Our book tips cover all topics from the right inspection to the closing and the possible resale. What do you have to pay attention to? How do you finance your purchase? How do you evaluate a property? And how do you conclude the contract? You will find the answers here.

• Video tips on buying real estate
• Book recommendations on the subject of buying real estate

Successful investing

Successful investing is a dream of many people. But unfortunately, it is not as easy as it seems. How can you start as a beginner in the investment industry? What do you have to consider and which mistakes should you try to avoid? What is worth investing in? And what does the term “investment” mean anyway? We present you the best books on the subject of investment!

• Video tips on the subject of investment
• Book recommendations on the subject of investment

Back to overview Taxes XXL: Tax return, tips & more

Here you can return to the overview of book and video recommendations on the subject of taxes in Germany. Tax forms, tax rates, tax returns and much more will be explained to you by experts and made understandable. In this XXL guide you will find information and articles on the most diverse questions on the subject of taxes.

• Book & Video Tips Overview: Taxes

Pass on right during lifetime

Without a will, the estate will be distributed according to the rules of legal succession. However, this is not always in the interest of the testator. If a will exists, the estate can be distributed differently than provided for by law and even persons who are not blood relatives can inherit. The drawing up of a will is therefore not only important to regulate the last will and testament exactly, but also to avoid disputes in the family.

Frequently asked questions are above all:

• What is the compulsory portion of the heir?
• What is the compulsory portion of the heir?
• What does the spouse inherit?
• What is the legal succession?

The will regulates everything

A will overrides the legal succession and can therefore determine a new succession. The testator determines who is to inherit. If several persons are named, the assets are usually divided according to quotas. Writing a will also enables the testator to leave individual things to certain persons, such as a car, jewellery or real estate. However, these are not legally regarded as heirs, but as bequests. In order to avoid disputes about the estate, the estate can be distributed in a will in such a way that no points of dispute can arise.

Wills can be drawn up with or without a notary. If a will is drawn up without a notary, a number of things must be taken into account. The author must be at least 16 years old and “testable”, i.e. in full possession of his intellectual powers. The will must be written by hand, because computer printouts are not sufficient as a valid will. If the will is several pages long, each page should be numbered, stapled together and each page uniformly dated and signed. A clear heading, like “Testament” or “My Last Will” is recommended to make the purpose of the writing clear.

However, if a will is drawn up with the help of a notary, this means that the testator has given his last will and testament verbally to a notary for the record. This is particularly important if real estate is part of the estate, as either a certificate of inheritance or a notarial will is required for transfer to the land register. If a notarial will exists, the heirs are spared the costly and time-consuming inheritance certificate procedure.

Heaving without a will – the legal succession takes effect

The legal succession regulates both the order of the heirs and the individual quantities that are inherited. First the next relatives inherit, like children and grandchildren and afterwards the more distant relatives, like nephews and nieces. Closer relatives generally exclude more distant relatives from the succession. The rate at which the individual heirs inherit is documented in the certificate of inheritance. The legal succession depends on the Parantel or order system. It divides the relatives into different orders. According to this, children and grandchildren of the testator belong to the first order. Parents, siblings, nieces and nephews of the testator are assigned to the second order. The third order includes grandparents, uncles and aunts as well as cousins of the testator. Spouses and registered civil partners are not regarded as relatives, but have the right of spouse inheritance. This gives them a special position and restricts the right of inheritance of the relatives. Relatives of the previous order always exclude relatives of a subsequent order from the succession.

The spouse

The spouse or registered partner is not considered a relative in the legal succession, but has a special position. If the deceased leaves behind both spouse and children, the spouse inherits half of the estate and the children the other half. However, if there are more than three children, the spouse receives only a quarter and the children divide the rest among themselves. If there are only second order relatives or grandparents, the spouse receives half of the estate and the second and third order relatives share the other half. If there are no relatives of the first, second or third order, the spouse inherits everything.

The first-order heirs

The children and grandchildren of the testator are counted to the first order. Nonmarital children born after 1 July 1949 are also entitled to inheritance. If a child of the testator and the spouse lives at the time of death, both inherit half. If several children live, the inheritance is divided between them and the spouse. If the deceased’s children have already died, the grandchildren inherit.

The heirs of the second order

If there are no children or grandchildren, the heirs shall be of the second order. The second order includes parents, siblings, nephews and nieces. If both parents of the deceased live at the time of death, the estate is divided equally. However, if one parent has already died, the descendants of that parent, i.e. siblings or nieces and nephews of the deceased, take this place.

Third order heirs

If the deceased leaves only heirs of the third order, the estate shall be divided as follows. The grandparents and their descendants shall inherit the estate of the deceased. If a grandparent is already deceased, the inheritance also falls to the aunts, uncles, cousins and cousins of the testator.

Adopted children

An adoption gives a child the legal relationship. If the child is a minor at the time of adoption, it acquires the legal status of a joint child of both spouses and thus belongs to the heirs of the first order. Thus not only the adoptive child inherits from the parents, but also vice versa. With the adoption, however, the child loses every claim, all rights and duty to the blood relatives and is therefore no longer entitled to inherit from the natural parents. This is not the case for adopted children who are of full age. The relationship to the biological parents does not expire and so an adopted child of full age can be entitled to inherit from up to four parts of the inheritance, the biological and the adoptive parents. However, there is no legal right of inheritance against the relatives of the adoptive parents.

Herit debts – reject inheritance or not?

An inheritance does not primarily mean wealth and new possessions. An inheritance is often burdened with debts and means a lot of responsibility for the heirs. After death, the heirs not only take over the assets, but also the rights and obligations of the deceased. If this includes debts, the heirs are also liable with their private assets. If it is clear from the outset that the debt is inherited, the inheritance can be rejected within the six-week period. If it only becomes apparent later that the estate is encumbered with debts, an application for insolvency can be filed. The private assets of the heir are thus protected and the debts only have to be repaid from the estate. If there is an inheritance case, the inheritance should be carefully examined and examined for debts. The inheritance can be refused by any heir. This is particularly useful if debts or real estate in need of renovation are part of the estate.

Reverse the inheritance – depending on the situation, sensible

The inheritance does not always provide only good things for the descendants. Even if many dream of riches and expensive jewellery, debts or dilapidated real estate can also belong to the inheritance. In such cases it is possible to reject the inheritance within a certain period of time and taking into account certain criteria.

No heir is obliged to accept the inheritance. This is possible above all for the protection of the heirs, because this gets not only the fortune, but also the debts of the deceased, for which it is responsible with the own private fortune. So before an heir is started or struck, each heir should first of all get a precise overview of the financial circumstances and debts of the deceased. These include bank balances, securities, valuables, land and real estate as well as funeral expenses, loans, maintenance arrears and compulsory portion claims. The costs of administering an estate or opening a will can also be added. If this examination reveals that there is more debit than credit, it makes sense to reject the inheritance. If the estate includes real estate in need of renovation, a detailed examination is also necessary. If the inheritance is taken up, a lot of money has to be invested in the renovation work, which can be very expensive depending on the case. So consider carefully whether or not you want to take up the inheritance in such a case.

Once an inheritance has been accepted or the deadline has been exceeded, there is usually no turning back. However, here again exceptions confirm the rule. In certain cases it is possible to withdraw from the inheritance afterwards. If, for example, it comes to light after acceptance of the inheritance that the estate contains a high credit of the deceased, of which you knew nothing until then, the acceptance of the inheritance can be challenged. As a prerequisite, however, you must have had comprehensive knowledge of the assets and debts of the estate. However, if the heir wishes to challenge the assumptions because the six-week period was not known or it was not clear when it would begin, a good lawyer can do the same.

Heirloom rejected due to overindebtedness

In the opposite case, there are also some possibilities. If the inheritance has been rejected due to over-indebtedness and it turns out afterwards that the inheritance does not contain as many debts as initially assumed, the rejection cannot be contested. However, if it turns out afterwards that securities or real estate belong to the estate of which you had no knowledge at the time of the disbursement, a challenge is indeed possible. The challenge must be made in writing and justified to the probate court within six weeks of the error being discovered.

Free heir’s allowance

In order to protect the heirs from a large financial burden, different tax rates and allowances apply depending on the degree of kinship. These allowances include various things that do not have to be taxed so that the heirs do not have to pay most of the tax, especially in the case of a large estate.

Financial relief for heirs

This includes the allowances to be paid if the partner or the children were dependent on the financial support of the deceased. For spouses, the pension allowance amounts to 256,000 euros provided the surviving spouse does not have a widow’s pension or a company pension for which no inheritance tax is payable. If such a pension is available, the value of the pension is determined based on the expected duration of the benefits and the benefit allowance is reduced by this value. For children, benefit allowances apply that are graduated according to the child’s age at the time of death. Infants up to the age of 5 years are entitled to a pension allowance of 52,000 euros. Starting from this point, the allowance falls by approx. 10,000 euros every five years. Children aged 20 to 27 can therefore claim a pension allowance of 10,300 euros, but these allowances are only relevant if the children do not have their own pension, such as an orphan’s pension.

The other allowances, in addition to the pension allowances, are regulated according to the degree of kinship and are independent of the surviving dependant’s pension or one’s own assets. Accordingly, spouses and registered civil partners inherit an allowance of 500,000 euros. Children of the deceased or grandchildren of the deceased, if their parents die before the inheritance, can claim an allowance of 400,000 euros. Grandchildren whose parents are still alive can claim an allowance of 200,000 euros. Great-grandchildren or the deceased’s own parents are entitled to an allowance of 100,000 euros. All other heirs can claim an allowance of 20,000 euros. So that as little tax as possible has to be paid in the case of inheritance, the testator can make important decisions long before death and determine them in the will.  Only what remains after deduction of the tax-free amounts from the estate is taxable. Each taxable acquisition is rounded down to a full 100 €. The individual tax rates for inheritance tax depend on the different tax classes of the heirs and are also graduated progressively.

Gifts and inheritance tax – the allowances

Inheritance tax and gift tax are closely linked. Almost the same allowances apply, but as in the case of inheritance, the tax-free allowances may only be transferred once every ten years. Testators who wish to reduce inheritance tax for their heirs must therefore start giving away their assets ten years before their death. In the case of patchwork families, it follows from this regulation that it may be sensible to adopt the spouse’s children in order to equate the tax allowances with those of the natural children. The adoption does not influence the succession to the other biological parent.

A gift thus actually makes it possible to save on inheritance tax. The testator must be aware of these possibilities and use them in a targeted manner in order to have to pay less of an inheritance tax. Nonmarital partners must bear in mind that even long-term civil partnerships only allow the given tax-free amounts if they are officially recognised, either by marriage or by registration of the partnership.

Duty part despite disinheritance – you have these rights

Basically every person can decide freely who he/she will appoint as his/her heir and whom he/she will disinherit. The testator does not have to justify in his will why he excludes a relative from the succession. However, an exclusion does not mean that the heir receives nothing, because every heir has a right to a compulsory portion. This claim must be requested by the heir himself, because these compulsory portion claims are not noted in the certificate of inheritance. If a testator determines a person as sole heir, this means on the one hand that he alone inherits the entire estate, but also that no one else should inherit who would actually be entitled to inherit.

Married couples can disinherit close relatives together in an inheritance contract or a Berlin will. In a classic form of the Berlin will, the spouses stipulate that the longer living partner is the sole heir and the children only inherit when both spouses have died. The parents disinherit their children until both have died. If someone is disinherited, the part of the inheritance that would have been due to this heir falls to the person who would have become the heir if the disinherited person had already died at the time of the inheritance.

In spite of a disinheritance, close relatives are entitled to a part of the property. This fact is based in law on the duty of care which the deceased has for his close relatives even after his death. However, this only applies to the next of kin, who are determined as follows according to the law: Close relatives include both legitimate, non-marital and adopted children, the spouse as long as the marriage is still effective at the time of inheritance, partners in a registered same-sex partnership and parents of the testator as long as there are no children. Grandchildren are only entitled if they have been excluded from the inheritance and their parents are no longer alive. Siblings and grandparents of the deceased are not entitled to a compulsory participation and are therefore not to be understood by law as close relatives. Anyone who is disinherited must assert a right to the compulsory portion himself against the other heirs. Under special circumstances, it is possible for parents to disinherit their children completely and also to withdraw the compulsory portion from them. This wish must be expressly ordered and justified in the will.

Preliminary inheritance and subsequent inheritance – determined in the will

The testator is free to determine the heirs and can therefore transfer his assets to several persons in a time transfer. The heir receives his inheritance only after another person, in this case the previous heir, has inherited it. The testator can, for example, choose an occasion or a time for the occurrence of the subsequent succession, for example the age of majority or the passing of the master craftsman’s examination. The previous heir and the subsequent heir are both legal successors of the testator, but do not form a community of heirs in which they would inherit at the same time, but inherit at a different time due to the cause of the testator. The heir has an expectant right to the subsequent inheritance and thus the heir of the previous heir lapses in the event of subsequent succession, the latter ceases to be the heir and the inheritance accrues to the subsequent heir. In the event that the subsequent heir has already died at the time of the subsequent inheritance, the testator should make provisions and name further subsequent heirs.

Pre-heirship and post-heirship are often used by spouses to ensure that all joint assets remain in the family. The spouses nominate the other as the previous heir and the common children as the subsequent heirs. Even in the event of a remarriage after the death of a spouse, the assets cannot be bequeathed to the new spouse.

The communities of heirs – open communication and agreement

A community of heirs describes all the heirs of a testator. This comes into force when there is more than one heir and a community of heirs is automatically formed. The community of heirs, however, loses its effect at the beginning of an inheritance dispute. However, a dispute does not necessarily have to occur in a community of heirs. Since there are often disputes about the objects of inheritance in communities of heirs, many communities of heirs still exist many years after the death.

Discussing a community of heirs

In the ideal case, the heirs of a community of heirs pay any debts quickly from the estate and then dissolve the community of heirs by distributing the surplus according to shares. However, this is often not the reality. Disputes within the community of heirs often ensure that these remain unresolved for years after the inheritance. Every member of such a community of heirs has the right to demand dissolution at any time, even without good reason.

pay debts and distribute inheritance

In order for a community of heirs to be dissolved without disputes, it is advisable to follow certain steps. From the correct valuation of the estate to inheritance taxes, there are important formalities to be observed.

Pay the debts of the estate

The debts of the estate can be paid from the estate by the heirs of the community of heirs. It is not uncommon for objects belonging to the estate to be sold, such as real estate or land.

The indivisible objects sell

If a real division is not possible for certain objects, such as a property in the community of heirs, the heirs may have to sell or force the object to be auctioned. In order to do this, a realistic selling price must first be determined. If there is no agreement here, a division auction can be initiated by one of the heirs. Distribute the divisible objectsThe heir is primarily to be divided in nature by the heirs. Each heir can therefore take objects from the estate for himself in agreement with the other heirs. Money and securities can be divided by the community of heirs according to the respective shares.

The donations and endowments take into account

If an heir has received benefits or gifts from the testator during his lifetime, these may be subject to compensation. Gifts that are subject to extinguishment increase the estate mathematically and are deducted from the recipient’s inheritance quota. Each heir may ask the others for information on such benefits so that they can be taken into account correctly.

Consider the tax office

An inheritance is always subject to inheritance tax. However, some things from the inheritance can be deducted from the tax, such as the cost of the burial or fees for opening the will.

Calculate the discount

A community of heirs cannot be divided until the estate has been determined. The heirs receive most of the information from the bank where the deceased had the accounts or deposits. In order to obtain access to these, a certificate of inheritance or a will with a court opening record is required. However, the debts are also part of the estate. In order to determine the complete estate, the debts and the assets should be compared and balanced.

The notary helps

If an agreement cannot be reached, a notary can be called in by the community of heirs. The notary mediates between the heirs in order to reach an agreement as quickly as possible. However, it should be borne in mind that such assistance is associated with some costs.

Consider the nursing services

If a child has cared for the deceased parent during his or her lifetime for no consideration, compensation can be claimed for this. This must be commensurate with the duration, scope and value of the estate.

The partial auction – the last resort for communities of heirs

Objects, such as real estate or land, often give rise to disputes in communities of heirs. The ideas of how to deal with the joint property are too different and the parties cannot agree. Every heir has the right at any time to demand a dispute of the community of heirs and thus to force its dissolution. In such a case, a partition auction may be the last possibility to settle the disputes and resolve the community of heirs.

The partition auction involves some risks which should be well thought out in advance. The real estate could be sold below value and lead to low profits for the heirs. There are some alternatives that exclude these risks. The property can be sold privately, saving on application, legal and attorney fees. In addition, the heirs can choose the buyer themselves and thus ensure that the property is not sold below value.  Another alternative is voluntary auctioning. The community of heirs can turn to a public auctioneer who organises and conducts an auction. The advantage for the heirs is that the minimum bid can be determined by the heirs themselves and there is therefore no risk of an auction below value. In both cases, however, the community of heirs must agree unanimously to the sale of the property.