How Long Do Heirs Have to Pay Out the Mandatory Share?

Under German inheritance law, heirs are legally obligated to pay out the mandatory share (Pflichtteil) within a reasonable timeframe. However, specific deadlines and conditions depend on various factors, such as the complexity of the estate and whether disputes arise. Here’s a detailed explanation of the timeframes and legal considerations:

 
1. General Timeframe for Paying the Mandatory Share
1.1 Legal Obligation Begins Upon Distribution Readiness
The obligation to pay the mandatory share arises as soon as the estate is ready for distribution. This typically occurs after:

The estate inventory (Nachlassverzeichnis) is completed.
The estate’s value has been calculated, including debts and eligible gifts.
1.2 Reasonable Timeframe
While no strict deadline is defined in the German Civil Code (BGB), courts generally expect heirs to fulfill mandatory share claims within six months after being formally requested by the claimant.

 
2. Factors That May Affect the Timeline
2.1 Complex Estates
If the estate includes complex assets such as real estate, businesses, or international holdings, additional time may be needed to appraise and liquidate these assets.

2.2 Disputes
If there are disputes over the estate’s value, the validity of claims, or other issues, the payment may be delayed until these disputes are resolved.

2.3 Heirs’ Financial Situation
If heirs lack sufficient liquidity to immediately pay the mandatory share, they may negotiate deferred payments or request a court order to extend the payment period.

 
3. Steps for Claimants to Enforce Payment
3.1 Formal Request
The claimant must formally demand their mandatory share from the heirs. This demand typically includes:

A detailed calculation of the claim.
A request for payment within a reasonable period (commonly six weeks to three months).
3.2 Legal Action
If the heirs fail to pay within the requested timeframe, the claimant can file a lawsuit to enforce the mandatory share.

 
4. Options for Heirs to Extend Payment
4.1 Negotiated Agreement
Heirs and claimants can negotiate:

Deferred payments over an agreed-upon period.
Payment in kind, such as transferring property or other assets instead of cash.
4.2 Court-Ordered Deferral
If immediate payment would cause undue hardship (e.g., requiring the sale of a family home or business), heirs can request a court to defer payment or allow installments under Section 2331a of the BGB.

 
5. Legal Obligations During Payment Delays
5.1 Interest on Mandatory Share Claims
If payment is delayed, the mandatory share may accrue interest starting one year after the death of the deceased, at a rate of 5% above the base interest rate set by the German Central Bank.

5.2 Partial Payments
Heirs can reduce financial pressure by making partial payments while negotiating the full settlement.

 
6. Consequences of Non-Payment
6.1 Court Enforcement
If heirs fail to pay, the claimant can obtain a court judgment to enforce the claim, potentially leading to asset seizures or forced sales.

6.2 Additional Costs
Heirs may be liable for legal fees, court costs, and accrued interest if they delay or fail to pay the mandatory share.

 
7. Practical Advice for Heirs
7.1 Act Promptly
Begin assessing the estate’s value and addressing mandatory share claims as soon as possible to avoid delays.

7.2 Communicate With Claimants
Maintain open and transparent communication with claimants to prevent misunderstandings and facilitate negotiations.

7.3 Seek Legal Advice
Inheritance lawyers can help you calculate the mandatory share accurately, negotiate with claimants, and manage disputes or court proceedings.

 
8. Conclusion
Heirs are generally expected to pay mandatory share claims within a six-month timeframe after the estate is ready for distribution. Delays may occur due to estate complexities or financial constraints, but claimants have the right to demand timely payment. Open communication, negotiated agreements, and legal assistance can help ensure compliance and avoid disputes.