Receiving an inheritance

What you should do when you receive an inheritance (Germany):

Immediately:

✅ Check inheritance tax: allowance: €400,000 (children), €500,000 (spouse). Above that: 7–30% tax
✅ Check for debts: are there any debts? If necessary, disclaim the inheritance (6-week deadline!)
✅ Don't rush anything: no big decisions in the first 3–6 months

Why wait 3–6 months?

• Grief affects decisions. You're emotional – that's normal
• "Keeping Grandma's house" is an emotional decision, not a financial one
• Park the money in overnight money first – you lose nothing there while you think

After 3–6 months:

✅ Pay off debts: overdraft, consumer loans (top priority)
✅ Emergency fund: top it up to 6 months' salary
✅ Invest: the rest in an ETF savings plan or a lump-sum investment
✅ Property: sell or rent out? Do the maths honestly (return vs. emotional value)
✅ Tax adviser: always get professional advice for larger inheritances (€100,000)