Law firm for calculating compulsory portion

Calculating your compulsory portion – how to determine your actual entitlement

The compulsory portion is one of the central protective instruments of German inheritance law. It ensures that certain close relatives receive a minimum entitlement even if they have been left out of the will or only minimally provided for. However, calculating the compulsory portion is rarely as easy as many people think. Behind the seemingly clear claim are numerous legal subtleties: The statutory inheritance quota must be correctly determined, the estate value must be fully and realistically established, gifts made in previous years can play a decisive role and heirs often refuse to provide relevant information.

Who is entitled to a compulsory portion?

Before a calculation is possible, it must be determined whether a claim to a compulsory portion exists at all. The following are entitled to a compulsory portion:

• Spouses or registered partners,
• Children (biological or adopted),
• and – only if there are no children – the parents of the testator.

The compulsory portion is half of the statutory inheritance share. The calculation therefore depends directly on how high the statutory inheritance claim would have been without a will. However, many family constellations are more complex today than they used to be: patchwork families, second marriages, real estate transferred during lifetime or business ties can significantly change the statutory inheritance quota. If you want to calculate your compulsory portion realistically, you should know exactly what the statutory succession would look like in your individual situation.

The net estate – the basis of every compulsory portion calculation

One of the most important questions is: How much was the deceased actually worth at the time of death? The net estate is required to calculate the compulsory portion. It results from:

Estate assets – estate liabilities = net estate

The estate assets include, among others:

• Real estate (condominiums, houses, land)
• Bank balances and deposits
• Valuables (art, jewelry, vehicles)
• Company shares or participations
• Receivables from third parties

Deductible estate liabilities include, among others:

• the actual debts of the testator
• Funeral costs (to a reasonable extent)
• Costs of the estate settlement
• certain outstanding tax receivables

Many heirs deliberately understate their estate. Some values are underestimated, properties are “verbally estimated” or certain assets are simply “overlooked”. It is therefore crucial for those entitled to a compulsory portion to actively enforce their right to information.

The right to information – no compulsory portion without figures

A person entitled to a compulsory portion can only calculate their claim once the heirs have fulfilled their obligation to provide information. This entitlement is particularly strong by law and includes:

• a complete inventory of the estate,
• Submission of all receipts, account statements and contract documents,
• if required, the preparation of a notarized inventory of the estate,
• obtaining expert opinions on real estate or valuable assets.

The notarial register of estates is a particularly effective instrument. It forces the heirs to cooperate and enables an independent determination of the estate – a protection against manipulated or incomplete inventories.

Correctly valuing real estate and assets

In many estates, real estate makes up the largest part of the assets. Their value is the determining factor for calculating the compulsory portion claim. An incorrect or unrealistic valuation can quickly shift the compulsory portion by tens of thousands of euros.
A correct evaluation is based on:

• independent market value appraisals,
• comprehensible market values,
• actual condition of the property
• Location, age and usability.

Capital investments, shareholdings or valuable items must also be expertly valued. Those entitled to a compulsory portion have the right to inspect all documents and, in case of doubt, to request a professional valuation.

Step by step: How to calculate the compulsory portion

Once all the relevant information is available, the actual calculation of the compulsory portion takes place:

1. Determine net estate
2. Determining the statutory inheritance quota
3. Mandatory portion = half of the statutory inheritance quota
4. Plausibility check as to whether gifts made in the last 10 years are relevant
5. Calculation of possible supplementary claims to a compulsory portion

An example illustrates the logic: If a disinherited child were the legal heir to 1/4 of the estate, his or her compulsory portion would be 1/8 of the net estate. However, things almost always get complicated when gifts come into play – as these can significantly increase the compulsory portion under certain circumstances.

Why errors in calculating the compulsory portion are so expensive

Experience shows: In practice, many persons entitled to a compulsory portion enter into negotiations with far too low expectations – often because they rely on incomplete information provided by the heirs. Assets are often missing from the estate register or properties are deliberately underestimated. If you want to calculate your compulsory portion precisely, you must therefore proceed in a legally informed and strategic manner.

Typical risks:

• Missing assets in the estate register
• Real estate values set too low
• Overlooked donations from the last 10 years
• Incorrect statutory inheritance quotas
• Inadmissible or excessive deductions

All of this can massively change the actual entitlement to a compulsory portion.

How CDR Legal supports you

As a law firm specializing in inheritance law, CDR Legal provides comprehensive support to those entitled to a compulsory portion from the outset. We analyze the estate value realistically and with legal certainty, request complete information from the heirs and review all assets, gifts and deductions in order to create a correct basis for calculation.

We then determine your actual entitlement to a compulsory portion and enforce it consistently – initially out of court, but also in court if necessary. In this way, we ensure that you do not have to forego a fraction of what you are legally entitled to. During the free initial consultation, we analyze your individual situation and discuss the next steps with you.