Private Law Rights and Obligations

Private Law Rights and Obligations

Private law rights and obligations in inheritance law govern the legal relationships between heirs, beneficiaries of compulsory portions and legatees. They concern, for example, the fair distribution of the estate, the fulfillment of testamentary dispositions or personal liability for the debts of the deceased. Those who know their obligations avoid legal conflicts and preserve family peace.

They regulate how heirs must deal with debts, legacies and each other.

Most Important Categories

• Claims and debts (e.g. loans, contracts)
• Rights in rem (e.g. ownership, easements)
• Claims for damages
• Continuing obligations (e.g. rental and service contracts)
• Company rights (e.g. GmbH shares, OG participation)

Claims and Debts

Heirs not only take over assets, but also the financial obligations of the deceased. These claims and debts therefore generally pass into the estate, unless they are among the most personal rights and therefore expire upon death. These include:

• open monetary claims such as loans, rent or compensation
• Debts of the deceased (e.g. loans, unpaid bills)
• ongoing contracts such as rent or insurance
• Employment relationships: If the employer dies, the employment relationship remains in place. If the employee dies, open vacation entitlements are converted into money that is due to the heirs.

Non-inheritable Rights

Certain rights are considered most personal and expire with the death of the deceased. These include:

• Personal and family rights
• Prohibitions on alienation and encumbrance
• Rights of repurchase and pre-emption
• Personal easements
• Maintenance claims – with important exceptions

Sebastian Riedlmair
Harlander & Partner Attorneys „Nicht jedes Recht überdauert den Tod. Wer testiert, sollte genau prüfen, was vererblich ist und was nicht.“

Compensation, Powers of Attorney, Orders

Claims for damages also belong to the estate, for example if the deceased suffered damage. This also applies to pain and suffering compensation.

Powers of attorney and orders generally end with death. However, if the agent has already started a business, he must complete it in certain cases. This applies above all if this would otherwise result in a disadvantage for the heirs.

From the time of death, the agent must act not in the interests of the deceased, but in the interests of the heirs.

Maintenance Obligations

• Child support: The obligation exists until the child is able to support himself, but only up to the amount of the remaining estate assets after deduction of debts. Creditors and beneficiaries of compulsory portions take precedence.
• Maintenance after divorce or dissolution: These obligations pass to the heirs. The claim can be reduced in individual cases, depending on the solvency of the estate.

Company Rights in the Event of Death

If the deceased was a shareholder or business owner, the fate of his shareholding depends on the respective articles of association:

• AG and GmbH: The shares can generally be inherited. However, there may be restrictions in the case of a GmbH.
• OG and KG: If a partner dies, the company is normally dissolved, unless the contract provides otherwise.
• GesbR: The company can be continued or dissolved by resolution. In many cases, the estate is compensated.
• Silent partnership: The heir takes over the silent participation.
• Condominium ownership: The share in the common property passes directly to the surviving partner under certain conditions.

Sebastian Riedlmair
Harlander & Partner Attorneys „Gerade bei Gesellschaftsbeteiligungen oder Wohnungseigentum ist es entscheidend, den Vertrag und das Gesetz genau zu prüfen, denn nicht alles fällt automatisch in die Verlassenschaft.“

Special Features of Life Insurance

• Life insurance policies follow their own rules:
• If a specific person is named as the beneficiary, they will receive the payout directly, outside of the estate.
• Other claims from insurance contracts fall into the estate.
• If the insured risk ceases to exist (e.g. in the event of accidental death), the contract ends.
• Beneficiaries are at an advantage, often even over beneficiaries of compulsory portions or creditors.

Your Benefits with Legal Assistance

The private law consequences of a death affect a broad spectrum of legal relationships. For this reason, heirs should carefully examine the estate, as they can otherwise quickly become personally liable. Legal support ensures that deadlines are met, claims are secured and obligations are fulfilled in good time.

Frequently Asked Questions – FAQ