Legal Fees Before the Certificate: Hiring a Lawyer Without Immediate Inheritance Access

1. Introduction
The period before the issuance of the Certificate of Inheritance (Erbschein) is often filled with legal complexities. Many heirs choose to hire a lawyer to navigate probate proceedings, resolve disputes, or manage estate-related obligations. However, covering legal fees without immediate access to estate funds can be challenging. This article explores the legal framework for hiring a lawyer before the Erbschein is issued, the rights of heirs and executors, and practical solutions for managing legal expenses.

 
2. The Legal Framework for Covering Legal Fees
2.1 In Germany, legal fees incurred during estate administration are considered estate liabilities. These costs can be reimbursed from the estate once the Certificate of Inheritance is issued.

2.2 Before the issuance of the Erbschein, banks typically freeze the deceased’s accounts. As a result, heirs may need to advance legal fees personally or seek alternative arrangements.

2.3 Executors (Testamentvollstrecker) or interim administrators may be authorized to use estate funds to pay for legal services, provided their authority is formally recognized.

 
3. Rights of Heirs and Executors to Engage Lawyers
3.1 Sole heirs named in a will have the right to hire a lawyer to represent their interests. However, until the Erbschein is issued, they may need to fund legal fees personally.

3.2 In cases involving joint heirs (Erbengemeinschaft), decisions about hiring a lawyer and covering associated fees must be made collectively. Disputes about these decisions can delay the process and may require mediation.

3.3 Executors have the authority to hire legal counsel on behalf of the estate. Their role often includes managing estate-related disputes or ensuring compliance with the deceased’s wishes.

 
4. Legal Services Commonly Required Before the Certificate
4.1 Lawyers are often engaged to assist with probate applications, ensuring the timely and accurate submission of required documents to the probate court (Nachlassgericht).

4.2 They may also help resolve disputes among heirs, such as disagreements over the division of assets or the interpretation of a will.

4.3 In estates with international elements, legal representation is crucial for navigating cross-border inheritance laws and coordinating with foreign jurisdictions.

4.4 Lawyers may also advise on tax obligations, including inheritance tax calculations and filing deadlines.

 
5. Covering Legal Fees Without Immediate Access to Estate Funds
5.1 Heirs may choose to pay legal fees out of pocket during the interim period. These costs can typically be reimbursed from the estate once funds are accessible. Keeping detailed records of payments and agreements is essential for smooth reimbursement.

5.2 Some law firms offer deferred payment arrangements, where legal fees are paid from the estate after the Certificate of Inheritance is issued. This arrangement often requires documentation proving heirship or executor authority.

5.3 Pre-financing services, such as those offered by professional estate management firms, can provide immediate funding for legal expenses. These services are particularly helpful in complex cases requiring extensive legal support.

 
6. Risks of Not Engaging a Lawyer Early
6.1 Delays in filing for the Certificate of Inheritance can prolong the probate process, increasing the financial and emotional burden on heirs.

6.2 Disputes among heirs may escalate without timely legal intervention, potentially resulting in costly and time-consuming court proceedings.

6.3 Failure to address tax obligations or legal compliance issues promptly can lead to penalties or complications that reduce the estate’s overall value.

 
7. Differences Between Germany and Other Legal Systems
7.1 In Germany, hiring a lawyer to manage estate matters often requires a formalized process, with legal fees being reimbursed from the estate once heirship is established.

7.2 In contrast, countries like Thailand rely more on family agreements and informal processes for estate management. While this flexibility allows faster action, it can lead to disputes and unclear financial arrangements.

 
8. Practical Tips for Managing Legal Fees
8.1 Heirs should discuss and agree on the need for legal representation early in the process, particularly in cases involving joint heirs.

8.2 Proactively communicate with law firms about payment options, including deferred payment plans or cost-sharing agreements among heirs.

8.3 Seek professional advice or pre-financing solutions if immediate funds are unavailable, ensuring that essential legal matters are addressed without delay.

 
9. Conclusion
Hiring a lawyer during the interim period before the Certificate of Inheritance is issued is often essential for managing estate complexities and protecting the rights of heirs. While access to estate funds may be restricted, practical solutions such as personal advances, deferred payment plans, or pre-financing services can bridge the financial gap. By engaging legal representation early and understanding the framework for covering fees, heirs can ensure a smoother and more efficient probate process while safeguarding the estate’s value.