Diversification of private assets not only into various asset classes but also into various countries may make sense in view of spreading the risk. In case an individual holds real estate in one country, participations at enterprises in another, and financial assets at a bank in a third country, double and multiple taxation effects are preprogrammed in case of an inheritance. Oftentimes, the country of residence of the testator as well as the countries of residence of the heirs will attempt to access the inheritance assets, the same as those countries where single assets of the estate are located (this pertains, e.g., to real estate in countries where neither the testator nor the heirs reside).
Coincidentally, the number of double tax agreements which pertain to inheritance tax and are aiming to avoid double taxation effects is low (Germany has such agreements only with five countries). In extreme cases it may happen that almost the entire estate is consumed by fiscal seizure of several countries. Particularly in case of large private assets, it is advised to plan the transition of the assets to the next generation as soon as possible. We are happy to assist you in that regard.