Preparations for Death: A Comprehensive Guide to Your Protection
29 Apr 2025
11
Minutes
Katrin Straub
CEO at nextsure
No one likes to deal with their own passing, but making smart preparations for death is an act of care. They protect your loved ones from emotional and financial burdens during an already difficult time. This article outlines the key steps for comprehensive planning.
The topic in brief and concise terms
Early and comprehensive preparation for a death significantly relieves relatives both emotionally and financially.
Important documents such as a living will, healthcare proxy, and will safeguard your self-determination and manage your estate.
Clarifying funeral wishes and their financing, as well as managing the digital estate, are equally important components of planning ahead.
Organize and make essential documents accessible early
One of the first and most important preparations for a death is gathering all relevant documents. These include the ID card, birth certificate, and, if applicable, marriage certificate or divorce decree. Keep these documents in a location known to at least one trusted person. The death certificate, issued after someone passes away, is needed by relatives for numerous formalities; often, seven to eight copies are required. A well-organised document folder significantly eases the situation for your surviving dependents in the event of an emergency. This basic organisation is the first step towards comprehensive preparation.
Ensure medical self-determination: Advance healthcare directive and power of attorney
A living will allows you to specify in writing which medical treatments you desire or decline in case you are unable to give consent. This may include decisions regarding life-prolonging measures or artificial nutrition. A living will must be documented in writing and signed by you, but does not require notarization for medical purposes. The power of attorney appoints a trusted person to represent your medical and often other affairs when you are no longer able to. Without these powers, a guardianship court may appoint a legal guardian who may not be aware of your exact wishes. These documents are key components of your preparations for end-of-life and ensure your self-determination until the very end.
Clearly define funeral wishes and secure them financially
You should record your individual wishes for the funeral in a funeral directive. This document allows you to specify details such as the type of funeral (e.g., burial, cremation, or sea burial), the location, the order of the memorial service, and the guest list. A funeral directive is generally binding, provided it complies with legal requirements and the financing appears reasonable. The average cost of a funeral in Germany ranges from 6,000 to 7,000 euros. Since the government funeral allowance was abolished in 2004, a private funeral insurance policy is a way to cover these costs. Alternatively, a funeral prepayment contract can be arranged with a funeral director, and the sum can be deposited in a trust account. Clarifying these aspects is an important part of preparations for the eventuality of death.
You can address the following points in a funeral directive:
Type of burial (e.g., coffin or urn)
Place of burial (cemetery, forest, sea)
Arrangement of the memorial service (music, speaker, guests)
Grave design and maintenance
Appointing a responsible person for the organization
Notes on financing (e.g., funeral insurance policy)
These decisions relieve your relatives and ensure that your farewell matches your wishes.
Shaping the last will: Clarifying questions about wills and inheritance
A will determines who receives your assets after your death and is a key part of preparing for death. Without a will, the legal succession applies, which often does not correspond to individual wishes. A handwritten will must be completely written and signed by hand; storing it at the probate court costs a one-time fee of approximately 75 euros. A notarised will offers greater legal security, with costs based on the value of the estate (e.g., around 165 euros for an estate value of 50,000 euros). Find out about survivor’s pension and inheritance tax allowances to optimally secure your heirs. Spouses, for example, have an allowance of 500,000 euros, children of 400,000 euros. Careful estate planning can save significant taxes and avoid disputes among heirs. Addressing these topics protects your loved ones from unforeseen financial burdens.
Managing your digital estate: Handling online accounts and data
The digital estate includes all your online activities and accounts, from email inboxes to social media and cloud storage. In 2018, the Federal Court of Justice ruled that the digital estate is part of the inheritance and heirs must generally be granted access. Create a list of all your online accounts with usernames and passwords and keep it safe. Appoint a trusted person to manage your digital estate, ideally with power of attorney beyond death. Many platforms like Facebook offer settings for estate management, such as converting the profile to a memorial state or deleting it. Managing your digital estate is an often overlooked but important part of preparing for death. This protects your privacy and spares your relatives a lot of effort.
Contracts and memberships: Review and cancel ongoing obligations
In the event of death, not all contracts automatically terminate. Tenancy agreements, for instance, must be terminated by the heirs, often with a notice period of three months. A list of all ongoing contracts (rent, electricity, phone, subscriptions, insurance) helps the bereaved keep track and cancel them. Insurances such as life or accident insurance should be informed immediately, as short notification periods often apply. Liability insurance generally ends automatically upon death; however, notifying the insurer may lead to a refund of contributions. The car insurance also transfers to the heirs. A careful listing and information about notice periods is an important aspect of preparations for death. This way, you can avoid unnecessary payments and relieve your heirs.
Expert Depth: Legal Pitfalls and Design Tips
When drafting a will, mistakes can occur without professional advice, which can later lead to significant problems. For example, a will with unclear wording can provoke challenges or result in tax disadvantages for the heirs. Our expert tip: Always have complex financial situations or specific wishes legally reviewed to ensure the validity of your will. Legal consultation costs often range between 150 and 300 euros per hour, but can prevent much higher costs from inheritance disputes later on. Also, with the payout of a term life insurance, there are deadlines and formalities to observe. An advance healthcare directive should be reviewed and, if necessary, adjusted every two years or so to ensure its currency. These detailed insights are crucial for comprehensive preparations for death. Professional advice can be invaluable here.
Key aspects for in-depth expertise include:
Assessment of testamentary capacity at the time of will creation.
Clear regulations to avoid ambiguities of interpretation (§2065 BGB).
Consideration of compulsory share claims (§ 2303 BGB).
Optimising inheritance tax burden through clever planning.
Regulations on the execution of the will (§2197 BGB).
Validity and scope of powers of attorney abroad.
Current rulings on the binding nature of advance healthcare directives (e.g. BGH, XII ZB 61/16).
These points illustrate the complexity and the necessity of careful planning.
Checklist and Final Steps: Keeping Track
More useful links
Wikipedia provides a comprehensive overview of inheritance law in Germany, including statutory succession and will design.
The German Hospice and Palliative Care Association provides detailed information on advance directives and their importance for medical self-determination.
FAQ
Do I need a notary for a will?
A handwritten will is also valid without a notary if it is entirely handwritten and signed. However, a notarized will offers higher legal certainty and is recommended in cases of complex financial situations. The costs for a notarized will start at approximately 165 euros for an estate valued at 50,000 euros.
What is the difference between a living will and a power of attorney for healthcare?
The living will specifies which medical treatments you wish to accept or refuse in certain situations. The power of attorney names a person who will make decisions for you (including medical ones) when you are no longer able to do so. Both documents complement each other.
What are the allowances for inheritance tax?
The allowances depend on the degree of kinship. For spouses, the allowance is 500,000 euros, for children 400,000 euros, and for grandchildren (whose parents are still alive) 200,000 euros. For unrelated individuals, an allowance of 20,000 euros applies.
Should I put my burial wishes in writing?
Yes, it is highly recommended to document your funeral wishes in writing in a funeral directive. This relieves your relatives and ensures that your wishes are carried out.
What happens to my tenancy agreement if I die?
The rental agreement does not automatically end with death. It must be terminated by the heirs, usually with a notice period of three months.
How can I manage my digital legacy?
Create a list of your online accounts and passwords, store them securely, and appoint a trusted person to manage them. If available, make use of the inheritance arrangements of the respective platforms.
