There has been a significant shift in inheritance practices in Germany, reflecting changes in society and family structures.
A survey conducted by Deutsche Bank shows that Germans are moving away from traditional cash bequests and towards more complex asset distributions. In particular, there has been a decline in the proportion of heirs receiving cash inheritances, while the inheritance of tangible assets such as properties, securities, and gold has increased. This trend indicates a preference for physical assets over liquid cash, reflecting a broader trend towards wealth accumulation through real estate and other tangible investments.
The changing dynamics of family structures, such as the rise of patchwork families, have also influenced inheritance practices. This introduces complexities into succession planning, and there is a need for tailored legal frameworks to accommodate diverse family situations. Additionally, the traditional Berlin will, where spouses designate each other as sole heirs, is becoming less common. This suggests a growing awareness of the need for more nuanced estate planning that reflects individual family circumstances.
Furthermore, there is an increasing recognition of inherited assets as a means of financial security and retirement provision. Many future heirs plan to utilize their inheritances for wealth accumulation and retirement savings. This indicates a shift in mindset, where inheritances are viewed as integral components of long-term financial strategies.
Given these changes, it is important for both testators and heirs to adapt and seek professional guidance in navigating the complexities of inheritance. Financial institutions and legal advisors play a crucial role in helping individuals understand their options and make informed decisions that align with their unique circumstances and goals.