Inheritance disputes among siblings can stem from financial and property disagreements, often exacerbated by vague wills. Anika, Thorsten, and Folker, who inherited a house, struggle to agree on its future. Their parents’ Berliner Testament lacks clear directives for such scenarios, leading to conflicts. As discussions turn contentious, Anika has initiated a forced auction to resolve the matter, while Thorsten seeks to retain ownership by buying out his siblings. Clear inheritance planning could have mitigated these issues.
Inheritance disputes among close relatives often arise from money, real estate, and unresolved family matters. However, these conflicts can be prevented with proper planning.
“My relationship with my brother has soured,” Anika expresses. “When communication with your sibling is reduced to lawyers, it’s a sad situation,” adds Thorsten. As siblings, they, along with their brother Folker, inherited a house following their parents’ passing, spanning 512 square meters on 2.7 hectares of land. Each sibling now holds a one-third share of the property.
Their father passed away in May 2017, and their mother unexpectedly followed in November 2023. “My parents created a Berliner Testament back in 1982,” Thorsten explains. A Berliner Testament is a unique will designed for spouses, ensuring that when one passes, the other inherits everything. “This kind of testament is common among married couples for mutual security,” says Jan Bittler, the managing director of the German Association for Inheritance Law and Asset Succession (DVEV).
If both spouses agree to the will, it can only be altered together, according to the expert. “This rule also applies posthumously: once one spouse dies and the couple has designated their children as final heirs, the surviving spouse generally cannot change the will afterward.”
Families are breaking the silence on inheritance discussions, exploring not just the wealth involved but also how real estate inheritance has impacted their relationships. There is a growing understanding of succession laws, tax exemptions, and usufruct rights.
The Challenge of Unclear Inheritance Rules
Anika, Folker, and Thorsten are now a community of heirs, each owning a third of their parents’ house, but they struggle to reach a consensus on its future. “I think it’s great to have this property,” states Thorsten, who wishes to retain the house, while his siblings prefer to sell it quickly. Unfortunately, their parents’ will does not offer guidance on such scenarios.
“In heir communities, conflict often arises when one person wishes to keep the property while others do not. These situations should ideally be addressed in advance,” emphasizes DVEV expert Bittler. His general advice is to include as many potential scenarios as possible in the will to prevent disputes.
The siblings share a wish for clearer directives: “I would have appreciated it if my parents had specified what to do if two wanted to keep the house and one did not, or included compensation regulations,” Thorsten remarks. Anika agrees, stating, “The will was vague, leaving too much to interpretation.” If their parents had clearly defined the property’s fate during their lifetimes, such as by gifting it, the siblings could have avoided their current disagreements.
In 2022, inheritance wealth in Germany decreased by 14 percent compared to the previous year.
Navigating Inheritance Without a Will
In some unfortunate cases, there may be no will at all, leading heirs to be determined by statutory succession in Germany. “Under German inheritance law, only relatives inherit, including those who share parents, grandparents, or even more distant ancestors,” explains the Federal Ministry of Justice. Adopted children and spouses are also entitled to inherit.
However, not all relatives have equal rights to inherit: according to German law, heirs are categorized into ‘orders.’ First-order heirs include the deceased’s direct descendants—children, grandchildren, and great-grandchildren. Second-order heirs include the deceased’s ancestors—parents and siblings. Third-order heirs consist of grandparents and their descendants, such as uncles and aunts.
A will can override this statutory order: “If a will is present, it takes precedence over the statutory succession provisions, meaning only those explicitly mentioned in the will inherit,” notes the Federal Ministry of Justice.
The Dispute Over Inheritance Continues
While the siblings do have a will, the absence of clear regulations has led to disputes over the inheritance. Their last meeting was at their mother’s funeral in December 2023, where Thorsten expressed his intention to convert the family home into holiday apartments. “Folker and I made it clear we wouldn’t invest in that idea because it seems unfeasible,” Anika says, adding, “To me, it feels like a financial sinkhole.”
In March 2024, Folker and Anika proposed that Thorsten buy out their shares in the house, but he disagreed. “Thorsten disregarded our initial offers because we hadn’t provided a specific amount,” Anika explains. Thorsten defends his stance, suggesting it was strategic: “I figured if they wanted something, they’d have to come to me.”
Real estate was not particularly lucrative in 2023, especially in urban areas.
Forced Auction as a Last Resort?
By the end of May 2024, Thorsten received notice from the district court that his sister had filed for a forced auction of the property. “I initiated the forced auction process to expedite a resolution,” she explains. “A partition auction is a method to dissolve a community of heirs,” Bittler clarifies.
Such auctions can be requested by any heir to prevent indefinite community of heirs. “In cases of inheritance disputes, this often becomes the final option for resolving such matters,” Bittler adds. However, these processes can be lengthy and costly, as they require obtaining a land register excerpt and covering court fees. The property is then auctioned publicly, with proceeds divided among heirs, although this amount is often less than what could be obtained through a direct sale. Interestingly, heirs can also bid in the auction if they wish to retain the property.
Recently, German financial institutions have increased real estate financing loans by a third.
Siblings Seeking Buyout Solutions
Determined not to participate in the bidding, Thorsten aims to halt the auction. He plans to have the house appraised and, if valued below 200,000 euros, he intends to buy out his siblings to retain ownership.