What is the difference from a will?
The binding effect. You can change or revoke a will alone at any time. With a contract of inheritance, by contrast, the contractual dispositions are binding: you cannot unilaterally free yourself from them. § 2289 BGB further provides that a later testamentary disposition is ineffective to the extent that it would impair the right of the person provided for under the contract – so a will written afterwards has no effect. There is also the price: a 2.0 fee instead of 1.0.
What does a contract of inheritance cost?
A 2.0 fee under KV 21100 (at least €120), calculated from the assets: at €50,000, it is €330; at €90,000, €492, following the Bundesnotarkammer's example. That is exactly double an individual will of the same value, because a contract is assessed differently for fee purposes than a one-sided declaration.
Can I revoke a contract of inheritance?
Not unilaterally, as a rule – that is its nature. Three routes are possible: a reserved right of withdrawal, which must be expressly set out in the deed; cancellation by mutual agreement of all parties to the contract, which in turn must be notarially recorded; and avoidance under narrow statutory conditions. The practically most important point: rights of withdrawal cannot be created afterwards. Anyone who wants to keep flexibility must agree it at the time of the notarial recording.
Must both parties be at the notary at the same time?
Yes, without exception. § 2276 BGB requires it to be concluded “to be recorded in writing by a notary, with both parties present at the same time”. Separate appointments, a signature sent by post, or representation are not possible; under § 2274 BGB, the testator can also conclude the contract only in person. If the participants live far apart, you should organise this early – there is no way around it.
When is a contract of inheritance worthwhile?
Whenever someone needs to be able to rely on the commitment, because they are providing something in return or giving something up. Typical cases: care in return for being appointed heir, farm transfer, business succession, securing arrangements in blended families, or combining it with a waiver of the compulsory portion. If, by contrast, you only want to set down your last will, a will is the better route: freely amendable, half the price, and without the risk of being bound, fifteen years on, to an arrangement that no longer fits.
Does a contract of inheritance remove the compulsory portion?
No. Persons entitled to a compulsory portion – children and spouses – keep their monetary claim against the heirs, regardless of what the contract of inheritance says. In business and farm successions especially, this can endanger exactly the substance the contract was meant to secure. The way to deal with it is a waiver of the compulsory portion by the person concerned, which itself has to be notarially recorded and is often dealt with at the same appointment – usually in return for a settlement payment.
What happens if the consideration is not provided?
This depends entirely on what is set out in the deed. If the appointment as heir is expressly linked to the consideration – care, for instance – and a right of withdrawal has been agreed for its absence, you can withdraw. If both are missing, the binding effect remains in place even though its basis has fallen away. This is the most common and bitterest mistake with care-based contracts of inheritance: the binding effect is carefully regulated, but the condition is not.
Can I combine the contract of inheritance with a will?
Within limits, yes. A contract of inheritance can contain unilateral dispositions alongside the contractual ones – and these remain freely revocable. What matters is that the deed clearly states which disposition has which character; this is exactly what disputes later ignite over. For the contractual parts, by contrast, § 2289 BGB applies: a later will is ineffective to the extent that it would impair the right of the person provided for.
