10 Things You Must Keep in Mind When Entering Into an Inheritance Agreement in Munich

Anyone wishing to make arrangements for their estate in Munich has three main tools to choose from: a holographic will, a joint spousal will—and a pre-need agreement. In Munich practice, the latter is the most powerful tool, but also the most demanding. It is powerful because it is binding. It is demanding because this very binding nature can later become a problem if it is not carefully considered. In my practice since 1987, I have drafted, reviewed, contested, negotiated, and enforced inheritance contracts. From this experience, ten key points have emerged that must be strictly observed in an inheritance contract in Munich. Anyone who overlooks even one of them will face a problem sooner or later—sometimes years later, sometimes after death, but always at a high cost.

1. Notarization is mandatory—there’s no way around it

In Munich, there is only one form of inheritance contract: notarization. Unlike a holographic will, which you can write on a piece of paper at home, Section 2276 of the German Civil Code (BGB) requires both parties to the contract to appear in person before a notary. This is not a recommendation; it is a prerequisite for the contract’s validity. Anyone who has a privately drafted “inheritance contract” between themselves and their partner in a desk drawer has absolutely no legal standing—even if the intentions of both parties are documented and both have signed it.

Munich has a high concentration of notaries; in the city center alone, there are numerous notary offices that specialize in estate law. The notarization itself usually takes between 30 and 90 minutes, though it can take significantly longer in complex situations—such as business succession, international considerations, or blended families. Important: The notary is legally bound to remain neutral. They verify the validity of your wishes, not their strategic soundness. Strategic advice—what should actually be included in the inheritance contract, which clauses belong in it and which do not—is provided by the attorney prior to the notary appointment. In Munich practice, it has proven effective for the attorney and notary to work in clearly separate roles within an inheritance law mandate: the attorney handles the strategic aspects, the notary the formal ones.

2. Legal enforceability — the most important difference from a will

The key feature of a contract of inheritance is its binding nature. Unlike a will, which can be revoked at any time, a contract of inheritance binds the testator to his or her dispositions. Specifically, this means that if I name my daughter as my sole heir in a contract of inheritance, I cannot simply “override” that disposition later by drafting a new will. Even if I draw up a different will ten years later in which I name my son as sole heir—the inheritance contract with my daughter stands. She becomes the heir.

Legally speaking, this bond is a double-edged sword. On the one hand, it provides security: anyone who makes life decisions based on the inheritance agreement—such as a daughter who gives up her career in Munich to care for her mother because she knows she will inherit the townhouse there—can rely on the agreement. On the other hand, the commitment can become a cage when life changes: divorce, discord, a new family, financial difficulties. In my Munich practice, I regularly see clients who would love to amend their inheritance contract from the 1990s today—but cannot, because the binding effect applies.

This experience leads to a clear recommendation: Anyone entering into an inheritance agreement in Munich should be aware that such an agreement is typically a long-term commitment. Life decisions that seem well-founded today may be outdated in 20 years. That is precisely why every inheritance agreement should include a discussion of adjustment mechanisms—see point 5 regarding the right of withdrawal.

3. The statutory share remains — even the best inheritance agreement does not protect against relatives entitled to a statutory share

A common misconception I regularly encounter among my clients in Munich is that a contract of inheritance is a tool that can be used to bypass relatives entitled to a statutory share. That does not work. Section 2303 of the German Civil Code (BGB) grants children, spouses, and, under certain conditions, parents a statutory share equal to half of the legal inheritance—regardless of what is stated in the contract of inheritance. Anyone who disinherits their three children in favor of their partner in an inheritance contract has indeed made the partner the sole heir, but still owes the children the statutory share as a monetary claim.

In Munich, with its high real estate values, this can quickly become a matter of survival. Here’s a real-life example from Munich: A condominium in Schwabing with a market value of 1.2 million euros, three children entitled to a statutory share, and a testamentary agreement in favor of the second wife. Each child’s statutory share is one-eighth of the estate, or roughly 150,000 euros per child, totaling 450,000 euros—payable in cash within a few months of the death. The widow faces the choice of selling the apartment or taking out a mortgage. This is precisely the situation that a well-thought-out inheritance contract must prevent—through early waivers of the statutory share in exchange for compensation, through gifts with set-off, and through lifetime transfers with a reservation of usufruct.

4. Munich real estate values are dramatically changing the tax bill

An inheritance contract in Munich differs from one in any other German city primarily in one respect: market values. In 2026, a condominium in a mid-range Munich neighborhood will routinely be valued between 600,000 and 1.5 million euros. A townhouse in Bogenhausen, Solln, or Pasing can easily exceed two million euros. These values have direct implications for inheritance tax.

The tax-free allowances under the Inheritance Tax Act have remained unchanged for years: 500,000 euros for a spouse, 400,000 euros per child, 200,000 euros per grandchild, and only 20,000 euros for non-relatives such as an unmarried partner. In Munich, with its high property values, these exemptions are often insufficient. Anyone who bequeaths a condominium in Maxvorstadt worth 900,000 euros to an unmarried partner via a contract of inheritance triggers inheritance tax in tax bracket III on approximately 880,000 euros—at tax rates starting at 30%. Although the partner formally inherits the apartment, they owe 264,000 euros in taxes, which they generally cannot pay without selling the apartment.

This is precisely where strategic estate planning in Munich comes into play. Possible tools include: lifetime gifts that take advantage of the 10-year period (the exemption amounts can be used again every ten years), marriage to move into a more favorable tax bracket, the family home exemption under Section 13(1)(4b/c) of the German Inheritance Tax Act (ErbStG) for owner-occupied real estate, and transfer in exchange for usufruct to reduce the taxable capital value. All of this is part of inheritance contract planning.

5. Plan for a fallback option — the most important safety mechanism

The binding effect of an inheritance contract can be mitigated contractually without completely waiving it. The most important tool for this is the right of withdrawal under § 2293 of the German Civil Code (BGB). The inheritance contract specifies the conditions under which the testator may unilaterally withdraw from the contract—for example, in the event of divorce, financial loss, gross misconduct by the beneficiary, or failure to provide care. If such a reservation is included, the testator retains an escape clause.

In my Munich practice, I almost always recommend including termination clauses—and I do so in a tiered manner. A typical clause structure looks as follows: first ground for rescission—gross misconduct within the meaning of § 2294 BGB; second ground for rescission—divorce (in the case of inheritance contracts between spouses); third ground for rescission—insolvency of the beneficiary (important in business succession); fourth ground for termination—the cessation of a contractual basis documented in the agreement (e.g., if the beneficiary moves to Munich to care for their parents there—and then moves away again after three years). Such clauses are not a vote of no confidence, but a realistic response to the fact that life circumstances change.

Important: The withdrawal itself must be declared in the proper form—Section 2296 of the German Civil Code (BGB) requires that the notice of withdrawal be notarized and served on the other party to the contract. Therefore, anyone wishing to withdraw from the contract must visit a notary again.

6. Voidability under § 2281 of the German Civil Code (BGB) — the second way out

In addition to the right of rescission, there is a second way to terminate a contract of inheritance: rescission. Section 2281 of the German Civil Code (BGB) allows the testator, under strict conditions, to rescind his or her own contractual dispositions—for example, in cases of mistake, unlawful coercion, or, particularly relevant in practice, the omission of a beneficiary entitled to a compulsory share.

This scenario is common in cases handled in Munich: The testator enters into a contract of inheritance in 1995 and has two children at the time. A third child is born in 2005. The third child is not named in the contract of inheritance but is entitled to a statutory share of the estate. After the testator’s death, the disinherited child may contest the inheritance contract if it can be assumed that the testator would have disposed of his estate differently had he known of the third child. The contestation must be declared within one year of becoming aware of the grounds for contestation (Section 2283 of the German Civil Code).

The testator may revoke the will during his or her lifetime—and in practical situations, this is often the most important tool for getting out of an inheritance contract that no longer suits the testator’s needs. Here, too, the law requires notarization (Section 2282 of the German Civil Code). A self-revocation not only nullifies the specific provision being challenged—in the case of contractual dispositions, the removal of a provision generally renders the entire inheritance contract void. This is a double-edged sword. Anyone who uses it should ensure that the grounds for revocation are legally sound and properly documented.

7. Filing with the Central Register of Wills — Obligation and Protection

Every notarized inheritance contract in Munich is automatically registered in the Central Register of Wills (ZTR) at the Federal Chamber of Notaries. This is not an option but the standard procedure. Whenever a death occurs in Germany, the ZTR is notified by the registry office; the ZTR checks whether a will or inheritance contract has been registered for the deceased and reports the result to the competent probate court. In Munich, the probate court is the Munich Local Court at Maxburgstraße 4.

This automatic registration has a key advantage: the inheritance contract cannot be lost. With a holographic will, there is the well-known problem that the latest version ends up in a desk drawer that no one knows about. With a notarized inheritance contract, this is impossible—the original remains with the notary, the inheritance contract is placed in special official custody at the Munich Local Court, and the ZTR is informed. In the event of a death, the probate court opens the inheritance contract, documents the opening in a written record, and notifies the parties involved.

It is important to note in this context that the ZTR is not a public registry—the parties involved only learn after the death of the decedent that an inheritance contract exists and what its contents are. Any relative entitled to a statutory share who wishes to know the contents of the inheritance contract must apply to the probate court for access after the decedent’s death.

8. Succession agreements in business succession — the ideal solution, when structured properly

In the Munich business community, the inheritance contract is by far the most important tool for business succession—and at the same time, the one where the most mistakes are made. The reason lies in its binding nature: Anyone who has built a small or medium-sized business and wants to pass it on to the next generation needs a binding commitment. The designated successor must know that he or she will receive the business—otherwise, he or she will not make the decision to help build it. The inheritance contract provides this commitment; a will does not.

In practice, three scenarios are common. First, an inheritance agreement between parents and a child who is to take over the business—the other siblings receive a settlement in exchange for waiving their right to a statutory share of the estate. Second, an inheritance agreement between business partners that governs the succession of management beyond death—this is particularly important in family-owned businesses and small partnerships. Third, the combined inheritance and prenuptial agreement for family businesses, in which marital property arrangements are integrated with provisions of inheritance law.

A key provision in any business succession agreement is the distribution of company shares, with voting rights concentrated in the hands of the successor. Anyone who grants siblings equal rights to the assets but not to management should ensure this in the inheritance agreement through differentiated share classes, voting rights restrictions, or trust arrangements. Such structures are part of the legal preparation—the notary merely implements them; he does not develop them.

9. International Dimensions — the EU Succession Regulation and Choice-of-Law Clauses

People living in Munich surprisingly often have international connections that affect inheritance agreements. The client base in Munich is international: second homes in Mallorca, family members in Italy, business interests in Austria, periods spent living in Switzerland, and inheritances from the United States. In all these situations, the EU Succession Regulation (EU Succession Regulation) comes into play.

The principle of the EU Succession Regulation is simply stated: the law of succession of the country in which the decedent had their habitual residence at the time of death applies (Art. 21 EU Succession Regulation). So, for example, someone who spends their twilight years in Mallorca and dies there is generally subject to Spanish inheritance law—even if their entire estate is located in Munich. Spanish inheritance law, for instance, has different rules regarding the reserved share than German law, different tax structures, and different procedures. This can completely undermine the carefully crafted structure of an inheritance contract.

The solution lies in the choice-of-law clause under Article 22 of the EU Succession Regulation: The inheritance contract explicitly stipulates that German law shall apply. This choice is possible provided that the testator is a German national. In Munich, I recommend this clause in virtually every inheritance contract for clients with foreseeable international connections—even if this is not yet relevant today. The clause is free of charge; forgetting to include it can prove costly later on.

10. See a lawyer before a notary—doing things in the right order saves money and stress

The tenth point is more about procedure than substance—but it often determines the quality of the will. Many clients in Munich go directly to a notary, have a draft will prepared there, and then schedule the notarization appointment. This works from a formal standpoint—the will becomes valid, and the notarization requirement is met. What is missing from this approach is a strategic preliminary review. The notary is legally bound to neutrality (Section 14 BNotO) and does not provide one-sided, partisan advice. He ensures that the contract is valid—but he does not develop the optimal strategy for one party.

Based on 35 years of experience in inheritance law, I have a clear recommendation: consult a lawyer first, then a notary. The lawyer will work with you to clarify strategic issues—such as statutory share requirements, tax planning, the trade-off between binding provisions and flexibility, international considerations, and business succession—and draft the structure of the clauses. Only after this strategic preparation should you go to the notary, who will formally notarize the contract. This way, you avoid two common mistakes: first, wasting expensive notary hours on strategic discussions that are better handled by a lawyer; second, and most importantly, strategic errors that become set in stone at the time of notarization.

At our Munich office, we at KLAMERT & PARTNER routinely follow this procedure—and know the notaries in the city center personally. This isn’t just marketing; it’s how a good estate planning practice operates.

Summary — The Ten Points at a Glance

Anyone planning a pre-need agreement in Munich should keep these ten points in mind:

1. A contract of inheritance must be notarized (Section 2276 of the German Civil Code) — there is no way around it.
2. The binding nature of the contract is the key difference from a will—the terms of the inheritance contract cannot be unilaterally revoked.
3. The statutory share remains in effect—even the best inheritance agreement cannot override the rights of relatives entitled to a statutory share.
4. Munich real estate values turn every inheritance agreement into a tax issue—tax exemptions are often insufficient.
5. Include a right of withdrawal under Section 2293 of the German Civil Code (BGB)—the most important safeguard for changes in life circumstances.
6. Challenge under § 2281 of the German Civil Code (BGB) as a second recourse—particularly relevant when heirs entitled to a compulsory share are bypassed.
7. The will is automatically filed with the Central Register of Wills — and is held in custody at the Munich Local Court (Maxburgstraße 4).
8. When it comes to business succession, the inheritance agreement is the most important tool—but voting rights and ownership structures require special provisions.
9. A foreign connection requires a choice-of-law clause under Article 22 of the EU Succession Regulation—even if the stay abroad has not yet taken place.
10. First a lawyer, then a notary—strategic preparation must come before the notarization.

Your Inheritance Agreement in Munich — Free Initial Assessment

Anyone in Munich planning to draft an inheritance agreement or seeking to have an existing one reviewed should start with a thorough initial consultation with an attorney. At KLAMERT & PARTNER, we have been advising on inheritance law in Munich since 1987—with a particular focus on the interplay between civil law structuring, tax implications, and long-term family strategy. The initial assessment of your matter is free of charge: You describe your situation to us, we review the key issues without obligation, and let you know whether an inheritance contract, a will, or a combination of both is the best approach.

You can reach us by phone at 089 540 239 0, via the contact form on our website, or in person at Pettenkoferstraße 37 in Munich—just a few minutes from Theresienwiese and the main train station. Languages: German, English, Ukrainian, Russian, Portuguese.

Frequently Asked Questions About Inheritance Agreements in Munich

How much does a pre-need agreement cost at a notary in Munich?

Notarization fees are based on the value of the transaction. For an inheritance contract, this is calculated using the following formula: modified net assets (gross assets minus liabilities, but at least half of the gross assets) multiplied by 1.3. For inheritance contracts between spouses, both sets of assets are added together. For a Munich couple with assets of one million euros, the transaction value is therefore 1.3 million euros; notary fees under the GNotKG are generally in the low four-digit range. In addition, there are out-of-pocket expenses, sales tax, and ZTR registration fees. Legal preparation is billed according to the RVG or a fee agreement and is not included in the notary fees.

A contract of inheritance or a will—which is better?

The answer depends on your specific situation. Simply put: Anyone who needs certainty and enforceability—in business succession, in non-marital partnerships, with business partners, or in care agreements involving consideration—should choose a contract of inheritance. Anyone who needs flexibility and wants to keep their options open should draw up a will. In our Munich practice, we often see hybrid solutions: A contract of inheritance governs the critical dispositions that require binding commitments; in addition, there is a will for the flexible aspects.

Can a pre-need will be amended retroactively in Munich?

In principle, this is only possible with the consent of all contracting parties—and even then, it must be done in the form of a notarized document. The only exceptions are: withdrawal based on a reservation stipulated in the contract; rescission under § 2281 of the German Civil Code (BGB) if grounds for rescission exist; or contractual termination by all parties involved (§ 2290 BGB). Unilateral amendment is excluded—that is precisely the point of the binding effect.

Who can enter into a contract of inheritance?

Adults with full legal capacity. The mere ability to make a will (from age 16) is not sufficient for a contract of inheritance. At least two contracting parties are required. Common scenarios in Munich include spouses, unmarried partners, parents and children, siblings, and business partners.

Where is a contract of inheritance kept in Munich?

The original document remains with the notary. The inheritance contract is placed in special official custody at the competent Munich Local Court (Probate Court, Maxburgstraße 4) and simultaneously registered in the Central Register of Wills at the Federal Chamber of Notaries. Upon the testator’s death, the inheritance contract is automatically opened—it cannot be lost.

Can I challenge an existing inheritance agreement?

Yes, under the conditions set forth in § 2281 of the German Civil Code (BGB)—mistake, duress, or failure to provide for a beneficiary of a compulsory share. A revocation by the testator during his or her lifetime must be in notarial form (§ 2282 BGB). A challenge by beneficiaries of a compulsory share is possible after the testator’s death; the time limit is one year from the date of becoming aware of the grounds for challenge (Section 2283 of the German Civil Code (BGB)). Since a challenge can generally invalidate the entire inheritance contract, it should always be handled with the assistance of an attorney.

Does a contract of inheritance protect against claims to a statutory share?

No—and that is one of the most common misconceptions. Claims to a statutory share arise when relatives entitled to a statutory share (children, a spouse, and in some cases parents) are excluded from the statutory order of succession by the inheritance contract. The claim to a statutory share is a monetary claim amounting to half of the statutory inheritance and arises regardless of the content of the inheritance contract. This claim can only be reduced by waiving the statutory share in exchange for compensation—and even that requires notarization.

How long is a contract of inheritance valid?

Once a validly executed inheritance contract has been notarized, it generally remains in effect until it is terminated by death, rescission, withdrawal, or contestation. There is no expiration date. In my practice in Munich, I see inheritance contracts from the 1970s that remain in effect unchanged—sometimes to the delight, sometimes to the chagrin of the parties involved. This is precisely why the question of adjustment mechanisms (Point 5) is so important.

Can a pre-need agreement be combined with a prenuptial agreement?

Yes. Combined inheritance and prenuptial agreements are common in Munich law practice, particularly in family businesses and in asset structures where marital property arrangements must be integrated with provisions of inheritance law. Advantage: Simplified formal requirements—in the case of combined notarization, the formal requirements of the prenuptial agreement, which are sometimes less stringent, apply. The combined agreement must be drafted with great strategic care, as the consequences under inheritance and family law influence one another.

When should I hire a lawyer to help me with my inheritance agreement in Munich?

As early as possible—and in any case before the notary appointment. The strategic preparation of the inheritance agreement is the lawyer’s primary responsibility; the notarization itself is the notary’s responsibility. In complex situations—such as real estate in Munich involving tax issues, business succession, blended families, or international elements—legal consultation should begin six to twelve weeks before the desired notarization to allow time for negotiations regarding the waiver of the statutory share, tax planning, and drafting of clauses.