Anyone wishing to arrange their succession in a binding, non-unilaterally revocable way often chooses an inheritance contract. Unlike a will, it is binding, which creates certainty but can also become a trap. Here you learn when an inheritance contract makes sense.
What is an inheritance contract?
An inheritance contract (Erbvertrag) is a notarised agreement between the testator and at least one other person about succession. It is often concluded between spouses, partners or in the context of business succession, for example when the future heir takes on care or cooperation in return.
Inheritance contract or will, what is the difference?
- Form: the inheritance contract must be notarised; a will can also be handwritten.
- Binding effect: the inheritance contract is binding and cannot be changed unilaterally. A will can be revoked freely at any time.
- Parties: the inheritance contract is concluded with a contracting party; the will is unilateral.
The binding effect is the decisive point: what was agreed as binding in the inheritance contract cannot later be changed by the testator alone, not even through a new will.
Risks and limits
The binding effect can later prove a disadvantage if circumstances change. Cancellation is generally only possible by mutual agreement or through an agreed right of withdrawal. An inheritance contract also does not remove the compulsory portion of disinherited close relatives.
⚠️ Have rights of withdrawal and amendment included from the outset. Without them you are locked into the binding effect, even in the event of a dispute or separation.
Planning your succession or disinherited? More on the compulsory portion and on contesting a will.
Frequently asked questions
Can I revoke an inheritance contract unilaterally?
No, that is the key difference from a will. Contractual dispositions bind the testator. You can only get out through a notarised cancellation agreement (§ 2290 BGB), through withdrawal where a right of withdrawal was reserved or a statutory ground under §§ 2294, 2295 BGB applies, or through rescission.
What does an inheritance contract cost?
Notary fees follow the GNotKG and are based on net assets, meaning assets less debts. An inheritance contract triggers a double fee, a single will only a single fee. In return, the notarised deed often makes a certificate of inheritance unnecessary later on.
May I still make gifts despite an inheritance contract?
During your lifetime you remain free to dispose of your assets (§ 2286 BGB). However, if a gift is made with the intention of prejudicing the contractual heir, that heir can claim restitution from the recipient after the death (§ 2287 BGB). What matters is whether you had a legitimate interest of your own in the gift.
Does an inheritance contract remove the compulsory portion?
No. Children, spouses and in some cases parents keep their claim under § 2303 BGB even if they are not provided for in the contract. The compulsory portion can only be excluded by a notarised waiver, which the entitled person must agree to.