The Certificate of Inheritance: What You Need to Know About It

The certificate of inheritance is an important document for the heirs, as it identifies a person as an heir and serves as proof of inheritance. If you are an heir, you have a lot to do and often do not know where to start. Not only do you have to deal with grief and shock, but also with a complex legal process that can be stressful.

One of the first things you need to do is apply for a certificate of inheritance. Banks and other institutions sometimes require this document if you want to access a deceased person's accounts. However, you may not strictly need a certificate of inheritance. In this article, you will learn everything you need to know about the certificate of inheritance.

What is a certificate of inheritance and why do you need it?

A certificate of inheritance is a document that confirms that you are the lawful heir are of a deceased person. Without this document, you may have difficulty accessing money or other assets that belong to you. If a deceased person left a will, you can obtain the certificate of inheritance from the probate court of the person's place of residence.

In most cases, the assets of a deceased person pass through the estate before going to the beneficiaries. The estate includes all assets that the deceased person owned at the time of their death; this can include real estate, vehicles, or bank accounts. However, if there is no will, complications can arise when it comes to who is to receive which part of the estate.

If you are a statutory heir to a person's estate, you definitely need a certificate of inheritance. However, if a notarized will was drawn up stating that you are entitled to inherit, the certificate of inheritance is often not required.

If you are in possession of a private will or are named as an heir without having received a statutory appointment of heir, you must apply for a certificate of inheritance at the land registry office.

Advantage of a power of attorney for the bank account

If you were granted power of attorney for a bank account during your relative's lifetime, you may not even need the certificate of inheritance! In this case, anyone who was granted a power of attorney for an account that extends beyond death during the lifetime of the account holder has access to the accounts even without a certificate of inheritance and retains a certain degree of operational capability.

This means: If your relative granted you a power of attorney over their bank account before their death, you, as the heir, can make payments in their name if necessary. For example, you can cover funeral costs or other expenses associated with the death and burial without having to contact a court or wait for official court documents. Since these powers of attorney remain valid even after death (i.e., they do not expire with the death of the issuer), this means the bank will not question whether it has been revoked.

Additional documents for the bank so that heirs can access the deceased person's account

What if you do not have a certificate of inheritance and want to access the deceased's bank account? If you are a legitimate heir and cannot prove it, you need a certificate of inheritance from a notary. But what if you can prove it? Is this certificate still necessary?

Under German law, banks cannot insist that you as an heir present a certificate of inheritance. You can your Prove status as an heir in another form as well, for example by a notarized will or a inheritance contract in conjunction with the official record of probate opening. A certified copy of a handwritten will including the record of probate can also suffice as proof (BGH, April 5, 2016, Docket No. XI ZR 440/15).

In one case, the bank had to Reimburse costs of EUR 1,770 for an unnecessary certificate of inheritance (BGH, 05.04.2016, Ref. XI ZR 440/15). It is worth pointing out this point when talking to the bank!

You therefore need a certificate of inheritance if there are discrepancies regarding who actually becomes the heir, or if there are concrete doubts about your stated succession (Higher Regional Court of Düsseldorf, October 22, 2021, docket number 7 U 139/21).

If the deceased had a Life insurance and has determined who is to receive the proceeds from it, no certificate of inheritance is required. This sum will not be included in the estate and your estate is not affected by it.

The different types of the certificate of inheritance

There are several types of certificates of inheritance that fit specific situations in inheritance cases.

The Certificate of sole heirship is issued to the sole heir in accordance with Section 2353 (1) of the German Civil Code (BGB).

If there are multiple heirs, they can appoint a joint certificate of inheritance or a certificate of partial inheritance apply for. A joint certificate of inheritance is issued to the community of heirs (§ 352a FamFG). A partial certificate of inheritance is issued to the individual co-heirs and only shows their rights of inheritance pursuant to § 2353 para. 2 BGB.

If a creditor wishes to pursue enforcement and has not yet received a certificate of inheritance from the debtor's heirs, they can alternatively obtain one themselves creditor's certificate of inheritance apply pursuant to § 792 of the German Code of Civil Procedure (ZPO).

The foreign certificate of inheritance is issued if the estate is subject to foreign succession law, i.e., the testator had their last habitual residence outside of Germany prior to their death. In this case, a limited certificate of inheritance can also be issued for assets located in Germany.

When should the land register entry be corrected?

Have you inherited a property? Then you must have the land register updated accordingly, because it is the official directory of property owners in Germany. As the heir to the property, you are responsible for ensuring that the land register entry is updated to reflect the change in ownership.

The deceased person will be removed from the land register and you will be entered as the new owner. For this purpose, the land register office generally requires a certificate of inheritance (§ 35 para. 1 GBO), which serves as proof of inheritance. If you are in possession of a private will or have been appointed as the legal heir to the estate, you therefore cannot avoid obtaining a certificate of inheritance.

The certificate of inheritance is often not required for the correction of the land register if there is a notarized will. Such a will is generally sufficient to prove the status as an heir to the land registry office.

The heir's claim to have their name entered in the land register is not absolute. There may be legitimate reasons why heirs do not have the land register corrected. For example, if the property to be inherited is to be sold immediately after the inheritance occurs. In such a case, the new owners can be entered directly into the land register. (Higher Regional Court of Düsseldorf, March 5, 2021, case ref. 3 Wx 192/20). This saves the heirs the time, money, and effort associated with correcting the land register.

How do you apply for a certificate of inheritance?

Applying for a certificate of inheritance is basically simple. First, you need to find the probate court responsible for the area where the deceased lived when they died. Once you know where to turn, you make an appointment an appointment with the court. Handling the matter via email or letter is not possible. As soon as you have made an appointment, you must appear in person at the probate court and Affidavit submit.

This is essentially a statement detailing your case in which you affirm that your application is correct. Probate courts regularly require the applicant to declare under oath that they are not aware of anything that could contradict the accuracy of their information. Thus, it is a written statement made under oath which is punishable by law if false.

As a person entitled to an inheritance, you want to ensure that everything proceeds correctly and in compliance with the law. This can sometimes be tedious and challenging. Therefore, you should consider hiring a notary to take care of everything for you.

The first step is to contact a notary, who will get everything underway. This is a bit more expensive because the notary has to charge VAT on their fees. But sometimes it makes sense, especially if real estate is also part of the estate.

Once this has been done, the notary will submit all necessary documents to the court and help you with all further steps that need to be taken.

What documents does the probate court need to issue the certificate of inheritance?

If you are an heir under a will or a statutory heir, the probate court requires several documents before the certificate of inheritance is issued.

• The first is an affidavit that the information in your application for a certificate of inheritance is true. This can be made in the required form before a notary or before the probate court.
• In addition, you must provide proof of identity, including your identity card.
• Next is the death certificate, which proves that the person who left you their estate has actually passed away.
• The will or the inheritance contract itself, as well as all documents containing something like a will, including drafts, as well as corrected and discarded versions.
• An affidavit providing information on whether there are other dispositions of property upon death that have not yet been found, as well as details on whether there are any objections to the will or the inheritance contract.

If you wish to become an heir based on statutory provisions, you must submit documents that prove your entitlement to inherit. These include:

• Family register and/or birth certificates and, if applicable, death certificates (of the spouse or civil partner, the children) as well as the divorce decree if the deceased was divorced.
• Affidavit that the deceased has left no last will and testament.

Whoever holds the certificate of inheritance can dispose of the estate and, among other things, withdraw money from the deceased's bank account, take possession of or sell estate assets, and have real estate registered in their name in the land register.

For this reason, third parties can rely on the accuracy of the information in a certificate of inheritance—in particular, that transactions concluded with an heir are legally valid. Even if it turns out afterward that a certificate of inheritance was issued to the detriment of a specific person. Thus, the contracting parties can therefore rely on the so-called „public faith“ (public trust).

How much does it cost to issue a certificate of inheritance?

For the Issuance of a certificate of inheritance you must pay a fee. Because the probate courts are legally obligated to Issuance of the certificate of inheritance and the notarization of the statutory declaration To charge fees.

The amount of the fees depends on assessed value of the estate at the time of death (active estate). From this, the debts of the deceased can be deducted, i.e., debts that he left behind himself, but not debts associated with the inheritance, such as compulsory portions, legacies, funeral expenses.

If the certificate of inheritance only relates to a Part of the estate refers (e.g., only to foreign assets), only this part is taken into account when calculating the business value.

When you inherit real estate, the costs for the certificate of inheritance can skyrocket. Pursuant to Section 46 of the Court and Notary Costs Act (GNotKG), the heirs must state the market value if real estate is part of the estate. For rented properties, the capitalized earnings value can be stated instead of the market value. You can have the local expert committee determine the market value or capitalized earnings value of the inherited properties. Fees are also payable for the preparation of the expert opinions. The amount generally depends on the determined value.

Normally, all costs must be borne by the person who filed the application for the certificate of inheritance. However, if multiple heirs apply for a certificate of inheritance together, they all must share in the costs.

How long does it take to issue a certificate of inheritance?

The time the probate court needs to determine your inheritance depends on a number of factors. The most important is the complexity of the estate – if there are many heirs and assets, or if there are special circumstances affecting the line of succession. Thus, it may take longer for you to receive your certificate of inheritance.

In any case, you should expect a processing time of about four weeks.. Ask the probate court when you can receive the certificate of inheritance.

Are there any deadlines associated with applying for a certificate of inheritance?

There are no statutory deadlines for applying for a certificate of inheritance. Theoretically, you can request a certificate of inheritance from the court years after the inheritance occurs. However, some claims may have become time-barred in the meantime. For example, among other things, a compulsory portion claim after three years. If the probate court refuses to issue a certificate of inheritance, you can appeal within one month.

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We believe that selling a property is one of the most important decisions in a person's life. It is an emotional decision that requires careful planning and attention to detail. As real estate experts, we have been serving our clients since 2004 and can assist you with Professionalism and integrity accompany you through this process.