A Real-Life Scenario

Standard Inheritance example

Navigating inheritance across borders is rarely straightforward. It requires not only compliance with multiple legal systems but also careful coordination with authorities, family members, and other stakeholders. This complexity grows when significant assets, such as real estate and investments, are involved, spanning Germany and Thailand.

In this scenario, a Thai woman is the lawful wife of her late German husband under Thai law and is recognized as the primary heir. The estate includes €50,000 in a German bank account, €30,000 in a stock portfolio, and two apartments in Munich valued at €500,000 and €200,000. However, two children from the husband’s previous marriage are entitled to their compulsory shares. The process involves managing and selling the properties, addressing tenant concerns, coordinating with German authorities, and ensuring all tax and legal obligations are met.

Here’s a breakdown of what remains after all costs and obligations.

Initial Estate Value: €780,000

- €50,000 (bank account)
- €30,000 (stock portfolio)
- €500,000 (Apartment 1)
- €200,000 (Apartment 2)

Assistance Fees (10%, excluding VAT): €78,000
This covers property management, tenant coordination, valuation and sale of apartments, handling compulsary claims, and liaising with German authorities.

VAT on Assistance Fees (19%): €14,820

Tax Advisory and Valuation Costs (including VAT): €10,000

This includes professional fees for filing inheritance taxes and valuing the properties.

Remaining Estate After Assistance and Advisory Costs

€780,000 - (€78,000 + €14,820) - €10,000 = €677,180

Compulsory Share for Children
The two children are entitled to 50% of their statutory share:

Statutory share: 1/2 of the estate = €677,180 ÷ 2 = €338,590

Compulsory share (50%): €338,590 ÷ 2 = €169,295 per child

Total compulsory share: €338,590
Remaining Estate After Compulsory Share
€677,180 - €338,590 = €338,590

Tax-Free Allowance (Spouse, Steuerklasse I): €500,000

The wife benefits from a significant tax exemption, covering the entire remaining estate.

Inheritance Tax: €0
No inheritance tax applies due to the spouse’s tax-free allowance.

Bank Transfer and Administrative Costs: €2,000
This includes currency conversion fees, international transfer charges, and administrative expenses.

Final Amount Transferred to Thailand
€338,590 - €2,000 = €336,590

A Thoughtful Approach to Managing Inheritance

Handling such a complex inheritance, especially across two countries, is no small task. From property management to coordinating with tenants and ensuring the legal rights of all heirs are respected, the process ensures that the inheritance fulfills the wishes of the departed while supporting their loved ones.

For the Thai wife, this inheritance is more than just numbers—it represents a deep connection to her late husband and the life they built together. With expert assistance, she can now focus on honoring his memory while securing her future with clarity and peace of mind.