Dissolving a Community of Heirs in Germany: Routes, Deadlines and Typical Mistakes

Published on 05.11.2026

Dissolving a Community of Heirs

Short answer: The co-heirs dissolve a community of heirs (Erbengemeinschaft) by dividing the estate (Auseinandersetzung): by a contract of all co-heirs, by individual co-heirs leaving (Abschichtung or sale of a share of the estate), in a dispute by an action for consent to a division plan and, for real estate, additionally by a partition auction (Teilungsversteigerung). In principle, each co-heir can demand the division at any time (§ 2042 (1) German Civil Code, Bürgerliches Gesetzbuch, BGB), and this claim does not become time-barred (§ 758 BGB, applicable via § 2042 (2) BGB).

Anyone who wants to dissolve a community of heirs quickly meets a peculiarity of German inheritance law: the estate belongs to the co-heirs jointly, and they can dispose of individual assets such as a house, a securities account or a bank account only together. The law therefore regards the community as a transitional state. There are several routes of dissolution, which differ in conditions, costs and tax consequences. Buy-out payments, the partition auction and a blockade by a co-heir are covered on separate pages. The legal position is October 2026. The article is also written for co-heirs living abroad, for example when a German estate falls to an international family or when a German-law community of heirs includes assets in several countries.

What a Community of Heirs Is and Why It Is Dissolved

A community of heirs arises by operation of law as soon as the testator leaves several heirs; the estate then becomes the joint property of the heirs (§ 2032 (1) BGB). It is not founded and cannot be refused without disclaiming the inheritance as a whole. Who belongs to the community and with what share follows from the will or from statutory succession. On the question of shares for children and spouses, you will find notes in the article on compulsory portion and inheritance of children.

As long as the community exists, the following applies:

• The heirs dispose of an individual estate asset only jointly (§ 2040 (1) BGB). A co-heir therefore cannot sell his or her “third of the house” alone.
• Each co-heir, on the other hand, can dispose alone of his or her share in the estate as a whole; the contract requires notarisation (§ 2033 (1) BGB).
• Day-to-day administration belongs to all jointly. Measures of proper administration are decided by the majority according to the size of the shares, and measures necessary for preservation may be taken by each co-heir alone (§ 2038 (1) and (2) in conjunction with § 745 BGB).
• The co-heirs are liable for estate liabilities as joint and several debtors (§ 2058 BGB), but until the division with the possibility of refusing payment out of their own assets (§ 2059 (1) BGB).

Legally, dissolution is the “division” (Auseinandersetzung): first the estate liabilities are settled, with disputed and not yet due items being retained (§ 2046 (1) BGB), and the estate is converted into money to the extent necessary for settlement (§ 2046 (3) BGB). The surplus is due to the heirs in proportion to their shares (§ 2047 (1) BGB), subject to an equalisation (Ausgleichung) among descendants under §§ 2050 ff. BGB.

Check First: What the Testator Ordered

Whether and how the community of heirs can be dissolved depends first on the will or inheritance contract. Three orders change the route considerably:

• Division order (Teilungsanordnung, § 2048 BGB): The testator can make orders for the division, for example that a co-heir is to receive the house. The shares do not change as a result; an excess value is in principle to be equalised. Whether a prior legacy (Vorausvermächtnis) was intended instead is a question of interpretation with considerable economic consequences.
• Exclusion of division (§ 2044 BGB): The testator can exclude division for the estate or for individual assets. This disposition in principle becomes ineffective 30 years after the death (§ 2044 (2) BGB). A prohibition of division also binds the partition auction.
• Executorship (Testamentsvollstreckung): If an executor is entrusted with the division, he or she must effect it under §§ 2042 to 2057a BGB and must first hear the heirs on the division plan (§ 2204 BGB). The co-heirs then cannot simply act around him or her.

In addition, two statutory grounds postpone division: as long as shares are undetermined because of an expected birth (§ 2043 BGB), and, at the request of a co-heir, until the end of a public-notice procedure for estate creditors (§ 2045 BGB).

The Routes at a Glance

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Division Contract: The Ordinary Route

The division contract is the consensual solution and for most communities of heirs the most sensible route. All co-heirs determine who receives which asset, who pays whom which equalisation, and how debts and costs are distributed. For money, movable property and securities the contract is in principle free of form, but should be put in writing, not least because banks demand proof. If real estate belongs to the estate and is to pass to a co-heir, notarisation is required (§ 311b (1) BGB); the conveyance (Auflassung) is in any case declared before the notary.

These building blocks prove their worth in practice:

1. An inventory with a list of assets and debts, so that everyone knows the same position.
2. A market-value expert opinion for real estate and other assets that are hard to divide, accepted by all.
3. A clear rule on who bears land charges, running costs and taxes.
4. A reference date for valuation and payment, so that later fluctuations in value are not renegotiated.
5. A statement on whether the contract ends the community completely or only partially (partial division).

Notary costs are governed by the Court and Notary Fees Act (Gerichts- und Notarkostengesetz). For the notarisation of a contract, a 2.0 fee applies under the fee schedule, at least 120 euros (no. 21100 KV GNotKG); the transaction value is determined by the value of the legal relationship (§ 97 (1) GNotKG), and for exchange contracts by the higher performance (§ 97 (3) GNotKG). The specific amount therefore depends on the value of the estate being distributed.

For tax purposes, real estate in the division contract is privileged: the acquisition of a property belonging to the estate by co-heirs for the purpose of dividing the estate is exempt from real estate transfer tax (§ 3 no. 3 GrEStG). If, on the other hand, the property is passed on among the participants only after the division has been completed, the exemption can fall away, because with the completed division the tax exemption is used up (BFH, judgment of 21 November 1974, Az. II R 19/68, BStBl II 1975, 271). If the co-heirs contribute an estate property to a partnership of their own, that too is tax-exempt only to a limited extent; the exemption can fall away retroactively if a co-heir’s participation in the partnership later decreases (BFH, judgment of 4 June 2025, Az. II R 42/21). Such arrangements should be reviewed before notarisation.

Individual Co-Heirs Leaving: Abschichtung and Sale of a Share

If only one co-heir wants to get out, the whole estate does not have to be divided. There are two routes for this, which are often confused.

Abschichtung. The co-heir waives his or her membership in the community towards all the others, usually against a payment from the estate; his or her share accrues to those who remain. In a judgment of 21 January 1998 (Az. IV ZR 346/96, BGHZ 138, 8 = NJW 1998, 1557), the Federal Court of Justice (Bundesgerichtshof) regarded the Abschichtung as possible without any form even where the estate includes real estate; only the transfer of a property as compensation remains subject to form. Because of the consequences in the land register, a notary should nevertheless be involved in practice. The Abschichtung requires the cooperation of all other co-heirs; there is no claim to it. Valuation, amount and taxes of the compensation are a question of their own, covered on a separate page on paying out co-heirs.

Sale of a share of the estate. For this the co-heir needs no consent from the others. He or she sells and transfers his or her entire share in the estate, both notarised (§ 2033 (1), § 2371 BGB). If he or she sells to a third party, the other co-heirs can exercise a right of pre-emption within two months (§ 2034 (1) and (2) BGB), even against the buyer after the transfer (§ 2035 BGB); the seller must notify them without delay. The buyer is liable to the estate creditors from conclusion of the purchase alongside the seller (§ 2382 (1) BGB); for the limitation of his or her liability, the rules on the limitation of the heir’s liability apply (§ 2383 BGB). Important for the seller: the sale does not end the community but replaces him or her by the buyer, and the seller is not automatically freed from liability towards estate creditors.

A trap for married persons: if the selling co-heir lives in the statutory matrimonial property regime and the share of the estate essentially represents all of his or her assets, the spouse’s consent may be necessary under § 1365 BGB. This should be clarified before the notary appointment.

Notarial Mediation: The Little-Known Official Route

Less well known is that each co-heir can apply to a notary for mediation of the division (§ 363 (1) and (2) FamFG). Any notary in the district of the local court in which the testator last had his or her habitual residence has jurisdiction; if there was no residence in Germany, the district of a local court in which estate assets are located comes into consideration (§ 344 (4a) FamFG). The notary invites the participants and draws up a division plan. If a participant does not appear, the content is communicated to him or her and a period is set; if he or she does not apply for a new date within this period, his or her consent is assumed and the notary confirms the agreement (§§ 366, 368 FamFG). Once the confirmation order becomes final, the division has the effect of a contract, and it can be enforced (§ 371 FamFG).

The limit: if points of dispute arise, the proceedings are to be suspended until they are resolved, but undisputed points can be recorded (§ 370 FamFG). Anyone who has a dispute about the succession or about the scope of the estate therefore does not get far with mediation. If an executor entitled to carry out the division exists, the application is excluded (§ 363 (1) FamFG).

Contested Dissolution: Action and Partition Auction

Action for division. If no agreement is reached, each co-heir can sue the others for consent to a concrete division plan. The court decides only on the plan submitted and examines whether it corresponds to the statutory rules (§ 2042 (2) in conjunction with § 749 (2) and (3), §§ 750 to 758 BGB). The condition is readiness for division: the estate liabilities have been settled or retained, the estate has been converted into money as far as necessary, and the inheritance shares are established. Once the judgment becomes final, the consent owed is deemed given (§ 894 ZPO). The proceedings are elaborate; the court fee for the proceedings in general is, in the first instance, 3.0 times a fee according to the amount in dispute (no. 1210 KV GKG), and lawyers’ costs under the Lawyers’ Remuneration Act (Rechtsanwaltsvergütungsgesetz) are added.

Arbitration. In the will, the testator can order that disputes about the division are to be decided not before the state court but before an arbitral tribunal (§ 1066 ZPO). This is often faster and non-public. This has limits with the compulsory portion: the testator cannot unilaterally assign a dispute about the compulsory portion to an arbitral tribunal (BGH, order of 16 March 2017, Az. I ZB 50/16, NJW 2017, 2115). Whether a clause covers a specific dispute depends on its wording; co-heirs can also subsequently agree together on arbitration.

Partition auction. If real estate is in the estate and cannot be divided, division is effected by compulsory auction and division of the proceeds (§ 753 (1) BGB in conjunction with § 2042 (2) BGB, §§ 180 ff. ZVG). Each co-heir can apply for it; an enforceable title is not required (§ 181 (1) ZVG). The partition auction does not end the community of heirs, however, but continues it in the proceeds. Procedure, costs and protective options are presented on a separate page. For classification: it is a means of pressure for the applicant, but can lead to proceeds below the price of a sale by private treaty and not infrequently takes longer than expected.

Which Route Fits? A Decision Aid

• Everyone is willing to talk: division contract, where applicable with partial division.
• One wants out, the others want to stay: Abschichtung or sale of the share of the estate to a co-heir.
• One wants out, the others do not react: sale of the share of the estate to a third party, notarial mediation or action.
• A house is to be sold, one does not agree: first a request for consent with a deadline, then action or partition auction, depending on value and timetable.
• There is an executor: division by him or her, role of the co-heirs limited to being heard.
• The estate may be overindebted: check limitation of liability before dividing; see the article on estate insolvency with a foreign connection.

Tax Consequences of the Dissolution

Inheritance tax attaches to the acquisition by succession; the later division in principle does not change this basis. If, however, in the course of the division a co-heir recognisably receives more than he or she is entitled to according to his or her share, without equalisation, this may amount to an additional benefit that is to be assessed separately. Costs that arise for the acquirer directly in connection with the handling, settlement or distribution of the estate are deducted with a lump sum of 15,000 euros without proof (§ 10 (5) no. 3 sentence 2 ErbStG); it also covers the funeral, gravestone and grave maintenance, while the administration of the estate does not count. The 15,000 euros apply if the tax arose after 31 December 2024 (§ 37 (21) ErbStG); for earlier successions it remains at 10,300 euros. The lump sum is granted only once per succession and is due to co-heirs only proportionally (BFH, order of 24 February 2010, Az. II R 31/08, BStBl II 2010, 491). General questions of arranging inheritance tax are covered in the article Avoiding inheritance tax legally.

For income tax purposes, the tax administration has regulated the division of an inheritance in the BMF circular of 14 March 2006 (BStBl I 2006 p. 253, amended since). According to it, a division without an equalisation payment in private assets is in principle without consideration, whereas compensation for receiving more can be treated as a disposal and acquisition. For real estate, a private disposal transaction within the ten-year period of § 23 (1) sentence 1 no. 1 EStG then comes into consideration. The details of this period with a foreign connection are explained in the article on the speculation period under § 23 EStG.

If the tax assessment is unclear, for example where an equalisation payment could trigger a taxable event, a binding ruling (verbindliche Auskunft) under § 89 (2) AO should be applied for from the tax office before implementation; a fee applies for this.

When a Foreign Country or Foreign Assets Are Involved

If the testator had his or her last habitual residence abroad or if real estate abroad belongs to the estate, it must first be clarified which inheritance law applies. Within the EU, the habitual residence at the time of death in principle decides this (Art. 21 EuErbVO, the European Succession Regulation); a choice of law in favour of the law of nationality is possible (Art. 22 EuErbVO). Denmark and Ireland do not apply the Regulation. If German law applies, the division follows §§ 2042 ff. BGB; registration and form on the spot follow the law of the state where the property is situated. You will find more in the articles on German inheritance law with residence abroad, on division where there is foreign real estate and on the will with residence abroad. The domestic partition auction is not available for foreign properties.

The Most Common Mistakes in Dissolution

1. Selling an estate asset alone. Without the cooperation of all, the disposition of an asset is ineffective (§ 2040 (1) BGB); only the entire share of the estate can be sold.
2. Oral agreements about real estate. An obligation to transfer a property requires notarial form (§ 311b (1) BGB), otherwise the dispute remains.
3. Forgetting liability. Leaving does not mean that estate creditors can no longer access the co-heir who has left; liability under § 2058 BGB should be regulated internally in the contract.
4. Checking taxes only after notarisation. The ten-year period under § 23 EStG, real estate transfer tax on further transfer and inheritance tax must be clarified beforehand.
5. Waiting too long. The claim to division does not become time-barred, but other claims among co-heirs do: the regular limitation is three years (§ 195 BGB), the maximum period 30 years (§ 199 (3a) BGB).

Example (fictitious): Anna, Ben and Clara each inherit a third of a house and a securities account. Anna and Ben want to sell, Clara wants to stay. After an expert opinion of 300,000 euros, they agree that Clara takes over the house and the siblings each receive 100,000 euros. Before notarisation they clarify whether the mother bought the house less than ten years ago, because in that case a private disposal transaction has to be examined.

Conclusion

A community of heirs is most easily dissolved by a contract of all co-heirs. If agreement fails, the leaving of individual co-heirs, notarial mediation, the action for consent to a division plan and, for real estate, the partition auction are available. Which route fits depends on what the testator ordered, how many co-heirs cooperate, what is in the estate and which tax consequences threaten. Mistakes usually arise with the formal requirements, with liability and with taxes.

Frequently Asked Questions

Can I force the dissolution of the community of heirs?

Yes, in principle: each co-heir can demand the division at any time (§ 2042 (1) BGB), provided no prohibition of division by the testator (§ 2044 BGB) or statutory ground for postponement stands in the way. In a dispute, the claim can be enforced by an action for consent to a division plan; for real estate, the partition auction is added.

How long does it take to dissolve a community of heirs?

That depends on the route. A contract of all co-heirs can be implemented quickly; action and auction take longer.

Is a notary required for the dissolution?

No. Notarisation is required if a property is transferred (§ 311b (1) BGB) or a share of the estate is sold or transferred (§ 2033 (1), § 2371 BGB). For money and movable property an agreement put in writing is sufficient.

What happens to the testator’s debts in the dissolution?

The estate liabilities are to be settled first out of the estate; disputed and not yet due items are retained (§ 2046 BGB). The co-heirs are liable for joint estate liabilities as joint and several debtors (§ 2058 BGB).

Which taxes arise on dissolution?

Inheritance tax arises on the acquisition upon death, not on the division itself. If a co-heir takes over a property for the purpose of division, no real estate transfer tax arises (§ 3 no. 3 GrEStG). Equalisation payments can count as a disposal for income tax purposes, for real estate within the ten-year period of § 23 EStG. In case of uncertainty, a binding ruling from the tax office helps (§ 89 (2) AO).

Attorney Dr. Johannes Fiala and the law firm, with a focus on international inheritance law, tax law and asset protection in Munich, advise communities of heirs and individual co-heirs on dissolving the estate, from examining the testator’s orders through the division contract to tax coordination with the tax office. Dr. Fiala has published extensively on questions of emigration and asset protection. Contact the firm without obligation to have your individual situation discussed in an initial consultation.