Glossary
Pflichtteilsergänzung
Pflichtteilsergänzung: Pflichtteilsergänzung (§ 2325 BGB) protects heirs entitled to a compulsory share in Germany from an estate being reduced by lifetime gifts. Gifts in the ten years before death are added back to the estate, one tenth less for each year.
What is the Pflichtteilsergänzung?
In Germany, children and spouses have a right to a compulsory share (Pflichtteil) of the estate. So that it is not hollowed out by gifts shortly before death, gifts from the last ten years are added back to the estate.
What does it mean for you?
Transferring a house to one child and keeping a usufruct often saves gift tax, but does not protect the gift from compulsory-share claims of other children. Get notarial advice. You can work out the tax side with the Gift Tax Calculator.
This page is for information only and does not replace legal advice.
Frequently asked questions
It means top-up of the compulsory share. Children and spouses in Germany are entitled to a compulsory share of the estate, and lifetime gifts can be added back to increase it.
A gift counts in full in the first year before death and one tenth less for each further year. After ten years it no longer counts (§ 2325 (3) BGB).
If the donor keeps a usufruct and goes on using the property, according to the Federal Court of Justice the ten-year period usually does not start. Have this checked for your case.