Inheritance Tax and Pflichtteil 2026: How Do They Interact?

Two tax subjects, one amount: the basic mechanism

The Erbschaftsteuer attaches to each individual's acquisition, never to the estate as one undivided mass. The object of the tax is the concrete acquisition of each single person, that is, what they receive out of the estate. The Erbe and the Pflichtteilsberechtigter are therefore two separate tax subjects, each with their own Steuerklasse (tax class), their own Freibetrag and their own tax rate.

The Pflichtteil is the minimum inheritance-law claim of close relatives who have been excluded from succession by a will. It amounts to half the value of the statutory share of the estate (§ 2303 BGB) and, as a pure monetary claim, is directed against the Erbe. How this claim arises in principle and in amount I explain in detail in the guide Pflichtteil for the heir: claim, amount and calculation.

In tax terms, two things happen with this single amount, depending on whose perspective you take.

For the entitled person: a taxable acquisition (§ 3 (1) no. 1 ErbStG)

The statute expressly places the Pflichtteil on the same footing as an inheritance and a Vermächtnis (legacy). Under § 3 (1) no. 1 ErbStG, an acquisition upon death is an acquisition by way of inheritance, by Vermächtnis, or on the basis of an asserted Pflichtteil claim. Anyone who demands and receives their Pflichtteil thereby has a taxable acquisition, exactly like an appointed heir.

This acquisition is taxed according to the entitled person's personal Steuerklasse. Entitled to a Pflichtteil are primarily descendants, that is, children and grandchildren, alongside the spouse and, in certain circumstances, the parents. A child falls into Steuerklasse I and has a Freibetrag of 400,000 EUR (§ 16 (1) no. 2 ErbStG). Pflichtteile of an ordinary size therefore often remain entirely tax-free for the child, because they do not exhaust this exemption.

For the heir: a deductible estate liability (§ 10 (5) no. 2 ErbStG)

From the heir's perspective the Pflichtteil is a burden. They have to pay it out of the inherited assets. This is exactly what tax law takes into account: the heir's taxable acquisition is only their enrichment, that is, the accrual of assets minus the deductible Nachlassverbindlichkeiten (§ 10 (1) ErbStG). Under § 10 (5) no. 2 ErbStG, these deductible liabilities expressly include the liabilities arising from asserted Pflichtteile.

The heir thus taxes only their actual enrichment, that is, the amount reduced by the Pflichtteil burden. In tax terms the Pflichtteil leaves the heir's tax base and instead reappears with the entitled person. The same assets are thereby not burdened a second time. They merely move cleanly from one taxpayer to the other.

The key is the Geltendmachung (§ 9 (1) no. 1 lit. b ErbStG)

At a single point the two sides are connected, and that point is the Geltendmachung (formal assertion). For the Erbe the Erbschaftsteuer arises on the death of the Erblasser (testator) (§ 9 (1) no. 1 ErbStG). For the Pflichtteilsberechtigter, by contrast, it arises only at the moment of Geltendmachung (§ 9 (1) no. 1 lit. b ErbStG).

As long as the entitled person does not demand their Pflichtteil, nothing happens in tax terms. They have no taxable acquisition, and the heir may deduct nothing, because only asserted Pflichtteile are deductible. Only the Geltendmachung triggers both consequences together: the tax liability for the entitled person and the deduction for the heir. This coupling is the real lever of the arrangement.

Geltendmachung means that the entitled person seriously and recognisably demands their right from the heir. The mere existence of the claim is not enough, and a simple declaration of intent just as little. Anyone who never asserts the claim keeps it out of taxation, but at the same time gives away the deduction for the heir.

Worked example: the Pflichtteil as a tax lever

How strongly the interplay works is shown by a simplified example. A father dies and leaves 1,000,000 EUR. The spouses lived in the Zugewinngemeinschaft (community of accrued gains). In the will the wife is appointed sole heir, and the only child is disinherited.

Under inheritance law the wife, alongside one child, receives a quarter as her statutory share (§ 1931 (1) BGB), increased by a further quarter as the lump-sum equalisation of accrued gains (§ 1371 (1) BGB), so half in total. The other half falls to the child. Its Pflichtteil amounts to half of that (§ 2303 BGB), that is, a quarter of the estate and thus 250,000 EUR.

For clarity, only the basic Freibetrag is applied in what follows, without the spouse's special pension allowance (besonderer Versorgungsfreibetrag) under § 17 ErbStG.

Asserting the Pflichtteil saves the family 47,500 EUR here. The effect arises twice over: the 250,000 EUR move into the child's already-existing, otherwise unused Freibetrag and remain tax-free there. At the same time the wife's taxable acquisition falls, and with it she drops from a tax rate of 15 percent to 11 percent. The two effects together produce the saving. You can estimate the exact amount of your Pflichtteil in advance with the Pflichtteil calculator and the tax consequences with the inheritance tax calculator.

Berliner Testament: why the Pflichtteil becomes a tax lever here

The interplay becomes especially clear with the Berliner Testament (joint spousal will). There the spouses appoint each other as sole heirs, and the children are provided for only after the last surviving parent, as final heirs (Schlusserben). In the first inheritance the children are thereby disinherited. In tax terms this has an unpleasant side effect: the child's Freibetrag in relation to the first parent to die lapses unused, and in the second inheritance the accumulated assets hit the children all at once and with a higher progression.

This is exactly where the Pflichtteil comes in as a structuring tool. If a child asserts its Pflichtteil in the first inheritance, it uses its Freibetrag in relation to the first parent to die, and the surviving spouse can deduct the Pflichtteil burden from their acquisition. This softens the later double burden. The inheritance-law subtleties of this construction, such as Pflichtteilsstrafklauseln (penalty clauses), I describe in the guide Berliner Testament: advantages, disadvantages and pitfalls.

An important limit belongs with this. The Geltendmachung must be genuine. The Pflichtteil must actually be demanded and economically fulfilled. A Pflichtteil among relatives that is asserted only on paper but in truth never paid out is vulnerable to the charge of Gestaltungsmissbrauch (abuse of tax-structuring options, § 42 AO). This arrangement therefore belongs in the hands of an adviser who coordinates the legal and the economic side together.

Common mistakes in the interplay of Pflichtteil and tax

1. Thinking of the Pflichtteil and the Erbschaftsteuer separately. The two are connected through the Geltendmachung. Anyone who looks only at inheritance law or only at tax law overlooks half the effect.
2. Treating the Pflichtteil as tax-free. The asserted Pflichtteil is taxable (§ 3 (1) no. 1 ErbStG). That a child often owes no tax is due solely to the Freibetrag, not to any tax exemption.
3. Letting the child's Freibetrag lapse. With a Berliner Testament the exemption is lost unused in the first inheritance if no one asserts the Pflichtteil. That makes the second inheritance more expensive.
4. Asserting it only on paper. Without a serious, economically executed demand there is neither the deduction for the heir nor security towards the tax office (§ 42 AO).
5. Overlooking the timing. For the entitled person the tax arises only with the Geltendmachung (§ 9 (1) no. 1 lit. b ErbStG). That opens up room for manoeuvre, but it requires a deliberate decision instead of mere waiting.

Frequently asked questions

Inheritance tax and the Pflichtteil: how do they interact?

The asserted Pflichtteil acts on both sides of the inheritance. For the Pflichtteilsberechtigter it is a taxable acquisition upon death (§ 3 (1) no. 1 ErbStG), which they tax against their personal Freibetrag. For the Erbe the same amount reduces the taxable acquisition, because asserted Pflichtteile are deductible as an estate liability (§ 10 (5) no. 2 ErbStG). The two sides are linked through the Geltendmachung (§ 9 (1) no. 1 lit. b ErbStG). No double burden arises, only a shift from one taxpayer to the other.

Do I have to pay inheritance tax on the Pflichtteil?

In principle yes, because the asserted Pflichtteil is a taxable acquisition (§ 3 (1) no. 1 ErbStG). In practice, however, no tax often arises because the personal Freibetrag covers the Pflichtteil. A child has a 400,000 EUR exemption in relation to each parent (§ 16 (1) no. 2 ErbStG). Only when the Pflichtteil, together with further acquisitions within ten years, exceeds this amount does an actual tax burden arise.

Can the heir deduct the Pflichtteil from the inheritance tax?

Yes. Asserted Pflichtteile are deductible for the heir as an estate liability (§ 10 (5) no. 2 ErbStG). The heir therefore taxes only their acquisition reduced by the Pflichtteil burden. The precondition is that the Pflichtteil was actually asserted. A Pflichtteil that is not demanded does not reduce the heir's tax.

When does the tax on the Pflichtteil arise?

Only with the Geltendmachung. Unlike with the heir, where the tax arises on death, for the Pflichtteilsberechtigter it arises at the moment they seriously demand their claim (§ 9 (1) no. 1 lit. b ErbStG). Until then there is no taxable acquisition and no deduction for the heir.

Does an asserted Pflichtteil lower the family's tax?

Often yes. Because the Pflichtteil is deducted for the heir and falls within the entitled person's own Freibetrag, the Geltendmachung can lower the total tax. The effect is greater the further the heir is above their own exemption and the less the entitled person has already used up their own. The precondition is always a genuine, economically executed Geltendmachung.

Is the Pflichtteil fiscally sensible with a Berliner Testament?

Often yes. With a Berliner Testament the child's Freibetrag lapses in the first inheritance if no one demands the Pflichtteil. A deliberate Geltendmachung uses this exemption and at the same time relieves the surviving spouse through the deduction. This arrangement must, however, be implemented cleanly so that it does not count as Gestaltungsmissbrauch (§ 42 AO). An individual coordination with an adviser is advisable here.

The most important statutes at a glance

The interplay of the Pflichtteil and the Erbschaftsteuer follows from the Bürgerliches Gesetzbuch (German Civil Code, BGB) and the Erbschaftsteuergesetz (Inheritance Tax Act, ErbStG). These provisions govern practice in 2026.

Next steps

Whether asserting a Pflichtteil is worthwhile in tax terms depends on the level of assets, the matrimonial property regime and the exemptions already used up. The decision should be made before the Geltendmachung, because it cannot afterwards be reversed at will. A clean calculation of both sides, that is, the heir's tax and the entitled person's tax, shows which path is the more favourable in your family.

Estimate your Pflichtteil with the Pflichtteil calculator and the tax consequences with the inheritance tax calculator. Or arrange an initial consultation directly, in which we work through the interplay for your specific case and set the fiscally best sequence.

Further detailed answers

• Pflichtteil for the heir: claim, amount and calculation
• Inheritance tax 2026: exemptions, tax rates, guide
• Berliner Testament: advantages, disadvantages and pitfalls
• Inheritance and debts: is the heir liable?

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