Equipment

The endowment is regulated by law in Section 1624 of the German Civil Code (BGB) and is therefore actually governed by family law. Nevertheless, endowment is also very important in inheritance law.

According to the provisions of Section 1624 of the German Civil Code, an endowment exists if a child is given something by the father and/or mother with regard to his or her marriage, the establishment of a civil partnership, the attainment of an independent position in life or the maintenance of the economy/position in life.

In view of the imprecise wording of the legislation, it must be examined on a case-by-case basis whether an extraordinary gift from the parents to the children constitutes an endowment.

Examples of an endowment are

  • Allowances from parents in connection with a marriage (so-called dowry)

  • Parental gifts for the purchase of a building plot, a house or an apartment

  • Gifts from parents on the occasion of the start of a self-employed professional activity

Endowments are not gifts. Accordingly, the provisions of gift law, in particular the clawback provisions set out therein, do not apply to endowments.

In the context of an inheritance settlement, endowments are always to be compensated, even without an express instruction from the testator, if the requirements of Sections 2050 et seq. BGB are always to be equalized (link to the article "Equalization").

Endowments also play a not insignificant role in the context of the right to a compulsory portion. However, since, as explained above, endowments are not gifts, they are already taken into account as part of the ordinary claim to a compulsory portion pursuant to Section 2316 BGB. In the context of the so-called supplementary compulsory portion claims pursuant to Sections 2325 et seq. BGB, endowments are generally not to be taken into account.

Only if an endowment is of such a magnitude that it exceeds the parents' financial circumstances does it constitute a gift with regard to the part of the endowment that exceeds the parents' financial circumstances. The provisions of gift law and, if applicable, those of the supplement to the compulsory portion then also apply to this part.

The above explanation is merely intended to provide an initial overview of the topic of endowments. It cannot replace advice in individual cases.

If you have specific questions or would like an assessment of your case, we will be happy to provide you with an initial consultation at any time. The costs of such a consultation amount to a maximum of EUR 190.00 plus VAT. The duration of the consultation and the size of your assets are irrelevant.

Status: 09.11.2022