A leading figure in German inheritance law is calling for a fundamental overhaul of the current legislation, citing a complex system riddled with exceptions and resulting in unintended consequences. Anton Steiner, president of the German Forum for Inheritance Law, told the “Neue Osnabrücker Zeitung” that the existing law is “a shredded piece of legislation that needs to be reformed from the ground up.
Steiner’s concerns stem from the numerous exemptions within the law, which he argues creates a situation where heirs inheriting limited property face significant tax burdens, while those inheriting numerous assets may pay little or nothing.
Recent statistics released by the Federal Statistical Office indicate inheritance tax revenue is projected to reach a record 13.3 billion euros in 2024. Steiner attributes this increase not to deliberate tax hikes, but to a failure to adjust the existing tax-free allowances in line with rising asset values, particularly in the property sector. He described the current situation as “an automatic, silent tax increase.
The debate has been fueled by criticism from Bavarian Minister President Markus Söder, who has highlighted disproportionately high inheritance taxes levied on property within Bavaria. Steiner expressed understanding for Söder’s concerns, noting the vast disparity between inheriting a property near Munich, where real estate prices are considerably high, versus a rural property in Mecklenburg-Vorpommern. He pointed out that the nationwide application of uniform tax-free allowances creates a significant burden on heirs in high-value regions, potentially leading to pressure to sell inherited properties. Söder has proposed regionalizing inheritance tax rates as a potential solution.