Where do startups go after they die?

Asset management after death

In the event of death, the heirs play a major role.
  • An asset manager is also responsible for his funds Customers responsible if he dies.
  • All right and Duties from the asset management contract then go to Inherit above.
  • The Inherit have different options in order to get in front of the asset manager to be shown.
  • The law sees family members as heirs. With a Estate planning however, the testator can make some changes.
  • After the death of his client, the asset manager must die Invest money like thishow that contractually was established. However, there are exceptions.

What tasks does an asset manager have after the death of his client?

An asset management company manages the money of its customers. The asset manager makes investment decisions and implements them. Now it can happen that a customer dies. Then the heirs or the heir come into play. Because all rights and duties are transferred to them. Basically, the rights include all claims from the asset management contract between the asset manager and the client. These include, for example, the right to information and accountability. As a rule, these rights of the heirs are retained even if the testator has appointed a beneficiary. This then has a right to the payment.

Heirs also have duties. In the area of ​​asset management, this mainly means that they pay the agreed remuneration for the time before and after the customer's death. However, the heirs have the right to extraordinarily terminate the asset management contract. There are also obligations that end with death - for example, the offspring no longer have to pay the premium for a life insurance policy. However, it is important to inform the asset manager of this if the payment of insurance is part of the contractual scope of benefits. Otherwise there could be overpayments.

... more about asset management

How does the asset manager know who the heirs are?

An asset manager has duties of confidentiality and due diligence. Therefore, it is best if he requires a certificate of inheritance from the heirs. Because this has public faith and the asset manager can rely on the correctness. However, the fact that the asset manager may request a certificate of inheritance is not anchored in law. Proof of the right of inheritance can, however, be stipulated in a contract.

If there is no contractual provision, the asset manager must check in each individual case whether the documents can also prove the right of inheritance. It is possible, for example, to present an identity card or a will with a record of the opening of the will. The probate court sends the opening minutes to the heirs. If there is neither a certificate of inheritance nor a will, a valid identification document and, if necessary, a death certificate can legitimize the legal heir.

How do I get a certificate of inheritance?

Heirs can apply for the certificate of inheritance at the competent probate court. This legitimizes him as the legal successor of the testator. The name of the heir and, if applicable, his share of the inheritance is recorded on the certificate of inheritance. However, heirs should be sure that they want to inherit in order to apply for it. Because with this step the legacy is officially accepted. The costs or fees of the certificate of inheritance depend on the amount of the estate.

This is what happens when the heir cannot be found

It is always possible that the asset manager does not know who his client's heirs are. For example, if his customer repeatedly fails to respond to attempts to contact him or if a supervisor or heir does not respond. Research into the whereabouts of the customer is recommended, for example at the residents' registration office. If these are unsuccessful, the probate court can investigate whether the customer is still alive.

If he has died and it is clear from the files of the estate court who the heirs are, the asset manager can ask for a contact to be made. If the heirs are still not known in the event of death, he should suggest an estate curator. The curator of the estate then assumes the administrative and disposal rights for the unknown heirs.

How does the financial advisor manage his clients' money?

The obligations from the asset management contract remain in place even in the event of the customer's death. He has to manage the entrusted assets as contractually stipulated - provided the heirs do not intervene.

But what if the testator wanted to invest his money riskily and the asset manager has not yet received any new instructions from the heirs? This is quite possible if the community of heirs could not come to an agreement or the heir is still unknown. In this case, it makes sense to forego the risky investment. Otherwise the asset manager may be held liable. If a risky investment already exists, the asset manager must carefully consider whether it should be retained. The interests of the heirs, the instructions of the testator and the previous development of values ​​play a role.

Tax obligations of the asset manager

The asset manager is normally obliged to inform the tax office of the assets under management in the event of the death of his client. He has up to a month after the knowledge of the death to do so. Otherwise the asset manager can be held liable if too little tax has been paid. This regulation also applies to banks if the deceased had accounts there. They must also inform the tax office if heirs close the account and withdraw the funds.

More on asset management in taxation

Our service for you

Sascha Riemann, head of asset management at our partner from Buddenbrock, advises: Think about how your assets are to be managed and distributed after death while you are still alive. "Stand up testament available, it is easier for everyone involved. ”It is also helpful for an asset manager if he has a specific Contact Person have.

"If all the relevant information is available after the death, we distribute the assets according to the deceased's request or continue to manage them," says Riemann. "Otherwise an executor will contact us who will manage the property according to the legal requirements divides. "

If you have any questions about asset management after death, simply contact ours Asset management experts. Our specialists will be happy to help you. We are available Monday to Friday from 9 a.m. to 6 p.m.030 – 120 82 82 8 or contact us at [email protected]

What happens to the testator's bank accounts in the event of death?

If an asset manager looks after his client's bank accounts, he can usually inform the heirs about this in the event of his death and, if necessary, make transfers or other changes at their request. If there is no asset manager, this task remains with the heirs. You can usually obtain information from the bank.

If they want to withdraw money or make transfers, they have to do it collectively. This means that all co-heirs must apply for a transfer. This is complicated for both the heirs and the account-holding bank. To simplify this, heirs could, for example, agree on an administrator. But this is only possible if the heirs have a good relationship with one another.

Another problem is for the banks to find out who the heirs are. It often takes weeks before the certificate of inheritance is issued. The following options are available so that such waiting times and other questions of power of attorney can be clarified:

  • Testators should set up a power of attorney for a person of trust at their bank during their lifetime.
  • A notarial health care proxy is also possible, which is also valid after death and allows banking.
  • Many banks also allow a co-account holder to have the account in the event of death. However, this rule only applies as long as the other heirs allow.
Bank accounts continue to run in the event of death

It is advisable that the heirs deal with the testator's bank accounts as quickly as possible in the event of death, as these continue to run for the time being. If the testator had made transfer requests during his lifetime, then these will be carried out according to the instructions after death and often cannot be prevented by the heirs. Unless the transfer is for a specific date in the future. In principle, direct debit authorizations issued by the testator also continue to exist after death. An exception is if the underlying contract automatically expires upon death. Heirs also have the option of canceling standing orders.

Contracts and insurance also play a role after death

In the event of death, the relatives should get an overview of the contractual relationships of the deceased. Because many contracts otherwise continue - including the rental contract. It is therefore important that you inform all contractual partners about the death. Other special features apply to insurance companies. If you want to know what exactly needs to be observed, click on the button.

... more about insurance after death

Who is inheriting anyway?

Unless otherwise agreed, in the event of death the assets will be divided according to the legal succession. This depends on the degree of relationship. The main heirs are the spouse and children. This is broken down as follows:

  • The spouse receives half of the property.
  • The other half is divided equally between the children.
  • If there is no spouse, the children inherit the entire property.
  • If one of the children is no longer alive, his descendants will inherit in his place.
  • If the marriage remains childless, the surviving spouse receives three quarters of the property, the rest go to the parents, siblings or nephews.
  • In the case of childless single persons, the parents inherit. If they have already died, siblings, then nieces and nephews, then grandparents, uncles, aunts and cousins ​​take their place.

If children inherit money or otherwise acquire assets, there are a few special features to consider when managing assets. Read more about this in the article Asset management for children.

... more about asset management for children

Estate planning makes sense

However, many testators do not want their property to be divided up as the law provides. In this case, inheritance planning during your lifetime is recommended. The legal division can be changed to a certain extent with a will. Because according to the law, certain persons inherit a compulsory share that is 50% of the statutory share of inheritance. These are spouses, descendants or, in the case of childless deceased, the parents. If the children of the deceased no longer live, their descendants are the heirs protected by duty. The compulsory shares of the spouse and the parents cannot be passed on.

With the exception of these compulsory shares, the testator can determine who inherits the property. With the division rules, they can specifically prove who gets which assets from the estate. For example the holiday apartment or the valuable memento. In the absence of such regulations, issuing can take a long time and become expensive. Because the heirs then have to decide for themselves who receives which item of value.

Frequently asked questions about inheritance

How do you draw up a will?

Testator can be a private will compose. You have to write this completely by hand and provide it with your signature and preferably with the date. Although this type of estate settlement is convenient, it is easy to make mistakes in the formulation, so that the last will is not fulfilled in the end.

It is therefore advisable to draw up the will at the notary. This can help to formulate the orders in such a way that they are also legally sound. In addition, the will is officially kept. The notarial will does not have to be handwritten.

What is in the will?

Provided that they take into account the compulsory shares, testators can inherit something or disinherit something in their estate at will. It is possible to appoint family members and not relatives as beneficiaries. If only one person is the beneficiary, that person is the sole heir. All other family members then only receive their compulsory portion. The testator can also disinherit a single person by stating that they will not inherit anything. A legal person (e.g. a foundation) may also benefit from the inheritance and the testator may impose conditions on the inheritance.

When will the estate be opened?

As soon as the probate court learns of the death of the testator, it must inform the persons involved about the content of the notarial will. Usually the so-called opening of a will takes place within a few days.

If there is only a private will, the estate is also officially opened. According to the law, anyone who finds a private will after the death of the testator must hand it over to the probate court. This then opens it like a notarial will.

Does the heir have to accept the estate?

Heirs can receive not only assets but also debts. Unless they have been expressly appointed as heirs by the testator or appointed as sole heirs, they do not have to accept the inheritance. After the will is opened or after the inheritance becomes known, you have six weeks to reject the inheritance before the probate court.