08/28/2026
Yesterday evening I ran a webinar for American and German-American families with property, heirs or children in both countries — an hour on what actually happens to an estate that sits in two legal systems. 30 of you came, and many stayed long past the end to ask questions. Thank you. It was one of the best evenings I have had doing this work.
Here is the moment it went quiet.
A widow inherits €600,000 from her husband. Passing to her directly, she is in German tax class I: €500,000 tax-free — in my example, about €11,000 in German inheritance tax.
The same €600,000, from the same husband, arriving through a US trust: German law has no trust of its own, so the payout can be treated as coming from a foreign entity — tax class III. Only €20,000 tax-free, rates from 30%. In the same example, about €174,000.
Nobody did anything wrong. The trust was good US planning. It just never met German tax law.
That is really the whole point of cross-border planning: not two good plans, but one plan that works in both countries.
If you missed it: we are doing it again in December. I am keeping a list so nobody has to find out about it by accident in a feed. Message this page, or email [email protected] with the word LIST, and you are on it.
And if you know an American family with something in Germany who should have been in that room: please send this to them. That is honestly how most people find me.
General information for education — not individual legal or tax advice.