Erbengemeinschaft (Community of Heirs) in Germany: What US Families Need to Know

What an Erbengemeinschaft Is and Why It Matters

When an American dies in Germany and leaves more than one heir, German law automatically creates an Erbengemeinschaft — a community of heirs. This is not a legal entity you file for or choose to create. It springs into existence the instant the person dies, by operation of Section 2032 of the German Civil Code (BGB).

Every heir becomes a co-owner of the entire estate. Not a share of specific assets — the entire pool. No individual heir can dispose of an estate asset or give the bank instructions without the unanimous consent of all other co-heirs or an authority accepted by the bank.

For American families used to the US probate model — where a court-appointed executor manages the estate and distributes assets according to the will — the Erbengemeinschaft is a fundamentally different structure. There is no neutral third-party manager. The heirs themselves must collectively manage the estate, and dispositions of estate assets or bank instructions generally require all co-heirs or an authorized representative.

How This Creates Deadlock

Imagine a scenario: an American man dies in Munich. His will names his three adult children as equal heirs to his German bank accounts and apartment lease. Under German law, all three children form an Erbengemeinschaft. To close the bank accounts, all three must consent. To terminate the apartment lease, they must agree on the action and authorize whoever communicates it. To sell any asset, all three must agree on the sale and the terms.

If one child lives in Oregon, one in New York, and one in Berlin — and they disagree about whether to terminate the apartment or keep it — the estate can sit frozen. The bank won't release funds without unanimous instruction or an authority accepted by the bank. The landlord keeps charging rent. SEPA standing orders keep draining the accounts.

This deadlock is not a theoretical edge case. It is the default outcome whenever a deceased person leaves multiple heirs without a specific German estate plan.

How a US Will Interacts with the Erbengemeinschaft

A US will naming an executor does not override the Erbengemeinschaft. German courts will read the will to determine who the heirs are, but they do not recognize the US executor's authority to manage the German estate single-handedly.

The only way a US will can prevent the Erbengemeinschaft is if it explicitly appoints one person as an independent executor (Testamentsvollstrecker) under German law — using that specific term. If the will says "I appoint my daughter Jane as executor of my estate," German courts interpret that under German succession rules, which may or may not grant Jane independent management authority depending on the exact language and its German-law translation.

Without the Testamentsvollstrecker designation, the heirs named in the will collectively form the Erbengemeinschaft, and the executor named in the US will has no unilateral power over the German assets.

Dissolving the Erbengemeinschaft

The Erbengemeinschaft exists until the estate is fully divided among the heirs. Dissolution (Auseinandersetzung) requires unanimous agreement on how to split every asset — or, failing agreement, a partition action through the German courts.

Consensual dissolution is the faster path. The heirs agree in writing on who gets what (or agree to liquidate everything and split the proceeds), and each heir's share is transferred individually. The bank releases each heir's portion based on the dissolution agreement plus the Erbschein.

Court-ordered partition happens when the heirs can't agree. Any single heir can bring a partition action through the German courts. The court may order assets sold at auction, which rarely benefits anyone — auction proceeds typically fall well below market value, and the process takes months to years.

Selling your share. Under Section 2033 of the BGB, any individual heir can sell their share of the Erbengemeinschaft to a third party or to another co-heir. The remaining co-heirs have a two-month preemptive right (Vorkaufsrecht) to buy the departing heir's share at the same price. This is sometimes the pragmatic exit when one heir wants out and the others want to keep the estate together.

Practical Steps for US-Based Heirs

If you're part of an Erbengemeinschaft and managing it from the United States:

Communicate early and document everything. Establish a shared email thread or document where all heirs log decisions. German courts, if it comes to a partition action, want to see evidence of good-faith negotiation attempts.

Appoint a single point of contact in Germany. Whether it's one of the heirs who lives in Germany or a German attorney, having one person interface with banks, landlords, and courts is far more efficient than having multiple US-based heirs each trying to coordinate across time zones and language barriers.

Consider a Vollmacht. The co-heirs can collectively grant a power of attorney (Vollmacht) to one person — a co-heir or an attorney — authorizing them to manage estate affairs on behalf of the group. This avoids the need for every heir to sign every document.

The American Dies in Germany — Family Emergency Guide includes the Erbengemeinschaft management framework alongside the Erbschein application process, so co-heirs can organize their collective responsibilities from day one rather than discovering the deadlock problem after the bank account is already frozen.

Frequently Asked Questions

Can one heir in an Erbengemeinschaft access the bank account alone?

No. German banks require unanimous instruction from all co-heirs (or a single person holding a Vollmacht from all co-heirs, or a court-appointed Testamentsvollstrecker). A single heir presenting their individual Erbschein share will be refused.

What happens to the Erbengemeinschaft if one heir disclaims?

The disclaiming heir's share passes to the next person in the succession order, as if the disclaiming heir had predeceased. That person then joins (or replaces the disclaiming heir in) the Erbengemeinschaft. The community structure persists as long as multiple heirs remain.

How long can an Erbengemeinschaft last?

Indefinitely. There is no statutory time limit. Some Erbengemeinschaften persist for years when heirs can't agree on dissolution. The estate sits in limbo — assets can't be individually sold, but ongoing costs (rent, taxes, insurance) keep accumulating against the pool.