The supplementary compulsory portion claim pursuant to Section 2325 of the German Civil Code (BGB) serves to ensure that those entitled to a compulsory portion are not disadvantaged by gifts made by the deceased that reduce the estate. This guarantees a fair compulsory portion, even if the deceased made gifts during their lifetime that could diminish the value of the estate.<\/p>\n\n
First, all gifts made by the deceased within the ten years preceding their death are considered. These gifts are added to the estate for accounting purposes, creating a so-called “fictitious estate.” This fictitious estate serves as the basis for calculating the supplementary compulsory share, as if the estate still existed to the same extent as the gifts.<\/p>\n\n
To properly account for the value of gifts over time, the gift value is reduced annually, a process known as a “tapering rule.” The value of the gift decreases by 10% each year, beginning in the second year before the testator’s death. “This means that gifts made in the year before death are fully taken into account, while in the tenth year they only count at 10%, and from the eleventh year onward they are not considered at all,” explains lawyer Istv\u00e1n Cocron.<\/p>\n\n
\u00a0<\/p>\n\n The actual estate is now increased by the reduced value of the gifts, resulting in the notional estate. The notional estate is the value on which the compulsory share is calculated.<\/p>\n\n Fictitious estate = estate + reduced gift values<\/em><\/p>\n\n 1. Compulsory share quota: First, the statutory compulsory share quota of the entitled person is determined, for example one quarter (1\/4) for a single child.<\/p>\n\n 2. Calculation of the supplementary compulsory portion claim: The compulsory portion rate is applied to the notional value of the estate and then reduced by the existing compulsory portion from the actual estate. The result is the supplementary compulsory portion claim.<\/p>\n\n Supplementary compulsory portion claim = compulsory portion quota x fictitious estate – compulsory portion from the actual estate<\/em><\/p>\n\n “The supplementary compulsory portion claim thus secures an additional amount for those entitled to a compulsory portion to ensure that they receive their compulsory portion despite gifts from the testator,” said lawyer Cocron.<\/p>\nYear since the donation<\/td> Credit Percentage<\/td><\/tr> Year<\/td> 100 %\u00a0\u00a0<\/td><\/tr> Year<\/td> 90 %\u00a0<\/td><\/tr> Year<\/td> 80 %\u00a0<\/td><\/tr> \u2026\u00a0<\/td> \u2026\u00a0<\/td><\/tr> Year<\/td> 10 %\u00a0<\/td><\/tr> From the 11th year onwards<\/td> 0 %\u00a0<\/td><\/tr><\/tbody><\/table><\/figure>\n\n Step 3: Calculation of the fictitious estate value<\/strong><\/h2>\n\n
Step 4: Determining the compulsory share quota and the compulsory share supplement claim<\/strong><\/h2>\n\n