What is a waiver of inheritance?
A waiver of inheritance is a legal agreement by which a person (the waiver party) waives their legal or testamentary right of inheritance in relation to the assets of another person (the deceased). This means that the renouncer waives the right to become an heir after the death of the deceased and to be entitled to a portion of the estate.
There are various reasons why someone might consider renouncing an inheritance:
- Wealth planning: A waiver can be part of comprehensive wealth or estate planning to organise the distribution of assets after death in accordance with the wishes of the testator.
- Protection of third parties: A testator may request a waiver of inheritance to ensure that certain assets or inheritance shares go to other heirs or beneficiaries that the testator favours.
- Avoidance of debts or liabilities: The renouncer can also renounce the inheritance to avoid being responsible for debts of the deceased.
- Family agreements: Families can use waivers of inheritance as part of agreements on the distribution of the estate or the continuation of a family business.
It is important to note that a waiver of inheritance under German law is subject to certain formal requirements in order to be valid.
A waiver of inheritance has complex consequences. It is advisable to seek legal advice before signing a waiver agreement in order to fully understand the implications and consequences. An experienced lawyer can assist in drafting and reviewing a waiver of inheritance and ensure that all legal requirements are met.