The Estate

In Austrian law, the estate continues the legal position of the deceased after their death. It encompasses all assets, meaning rights (assets) and liabilities (debts) of a deceased person.

Strictly personal rights and obligations of the deceased are not included. These strictly personal rights and obligations expire upon the death of the deceased and are not transferred to their legal successors.

The Estate as a Legal Entity

From the time of death, the estate in Austria is considered an independent legal entity. It can acquire rights and fulfill obligations itself, such as filing lawsuits or making payments. The court commissioner manages the estate until the ‘Einantwortung’, ensuring that assets and debts are clearly recorded and secured.

Estate Proceedings

Procedure for Estate Proceedings

After a death, the district court automatically initiates estate proceedings. The appointed court commissioner (notary) identifies the heirs, secures the estate, and prepares the formal court transfer (‘Einantwortung’) to the heirs.
Learn more about the procedure for estate proceedings here.

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Difference from Germany

While in Germany the estate automatically passes to the heirs upon death, Austrian law provides for a formal court transfer (‘Einantwortung’). Only with this decree do the heirs become owners of the estate.

Strictly Personal Rights and Obligations

Strictly personal rights and obligations are inextricably linked to the person of the deceased. These include, for example, custody rights, certain maintenance claims, or strictly personal employment relationships. They expire upon death and are not transferred to the heirs.

Private Law Rights and Obligations

A large part of private law claims and obligations are transferred to the heirs, provided they are not strictly personal. These include, in particular:

• Assets and Debts: Assets include all movable and immovable property, as well as rights that have a monetary value. Debts of the deceased are transferred to the heirs. Through an unconditional declaration of acceptance of inheritance, heirs are liable without limitation; with a conditional declaration of acceptance of inheritance, liability is limited to the value of the estate.
• Condominium Ownership: Condominium ownership is transferred to the heirs with the ‘Einantwortung’. If there are multiple heirs, co-ownership arises, which can be dissolved through an inheritance division.
• Tenancy Law: Tenancy agreements generally pass to the heirs. They assume existing rights and obligations and can terminate the lease agreement in compliance with statutory deadlines.
• Employment Contract: Personal employment relationships terminate upon the death of the employee or employer, unless they are transferable. Outstanding remuneration claims fall into the estate.
• Maintenance: Maintenance claims in favor of the deceased expire upon their death. Maintenance obligations may continue to exist as estate liabilities. Survivors may be entitled to orphan’s or widow’s pensions, if applicable.
• Damages: Outstanding claims for damages and obligations generally pass to the heirs.
• Life Insurance: Life insurance policies do not fall into the estate if a designated third-party beneficiary has been appointed. Otherwise, the claims belong to the estate.
• Mandate and Power of Attorney: Mandates and powers of attorney expire upon the death of the principal, unless explicitly agreed otherwise.
• Shareholder Rights: Shareholder rights of the deceased are transferred to the heirs, unless otherwise stipulated in the articles of association. In the case of corporations such as AG (public limited company) and GmbH (private limited company), the transfer of shares takes place according to statutory and contractual provisions.
• Management and Procuration: These terminate upon death, unless continuation is provided for in the articles of association or by resolution.
• Association Membership: Memberships in associations usually expire upon death if the statutes do not provide for continuation.

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Public Law Rights and Obligations

Public law rights and obligations are generally strictly personal and therefore not inheritable. They exist only for the deceased person and expire upon their death. Nevertheless, there are exceptions where certain public law obligations or claims are transferred to the heirs within the scope of the estate.

Non-inheritable

Non-inheritable rights and obligations include, in particular:

• Voting rights and other political participation rights
• Personal administrative penalties that have not been converted into monetary claims (e.g., driving bans, detention penalties)
• Personal trade licenses that are exclusively tied to the person and do not permit continuation rights
• Professional licenses such as those for lawyers, medical associations, or craft trades
• Custodial sentences: Unexecuted custodial sentences expire upon death.

These rights and obligations automatically terminate upon the death of the deceased and do not become part of the estate.

Are Transferred to the Heirs

Some public law obligations and claims are treated as property rights and are therefore transferred to the heirs. Examples include:

• Tax Debts: Outstanding tax claims or credits are transferred to the heirs and are taken into account within the scope of the estate proceedings.
• Tax Credits from overpaid duties or previously unpaid refunds
• Fines from administrative penalty proceedings, insofar as they exist as monetary claims
• Social Security Contributions or refund claims against social security

These claims and demands are considered part of the estate in the estate proceedings and affect the value of the inheritance.

Your Benefits with Legal Assistance

Estate settlement can be complex. Experienced lawyers ensure that your rights as an heir or forced heirship beneficiary are protected.

• Legal certainty: Avoiding errors that lead to loss of rights
• Efficiency: Targeted and swift processing
• Representation before courts and authorities
• Consultation on inheritance law, tax law, and procedural law matters

With our support, your interests are optimally represented.

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