Preparations in the event of death: A comprehensive guide to making provision for your affairs
29.04.25
6
Minutes
Katrin Straub
Managing Director at nextsure
Nobody likes to think about their own passing, but sensible preparations for death are an act of care. They protect your loved ones from emotional and financial burdens during an already difficult time. This article shows you the most important steps for comprehensive planning ahead.
The topic in brief and concise terms
Early and comprehensive preparation for death significantly eases the emotional and financial burden on relatives.
Important documents such as an advance healthcare directive, power of attorney and will safeguard your self-determination and regulate your estate.
Clarifying funeral wishes and how they are to be financed, as well as arranging your digital estate, are equally important components of forward planning.
Organise essential documents early and make them accessible
One of the first and most important preparations for the event of death is compiling all relevant documents. These include identity card, birth certificate and, where applicable, marriage certificate or divorce decree. Keep these documents in a place known to at least one trusted person. Relatives need the death certificate, which is issued after death, for numerous formalities; often seven to eight copies are required. A well-organised document folder makes it much easier for your surviving dependants to act in an emergency. This basic organisation is the first step towards comprehensive provision for the future.
Safeguarding medical self-determination: advance decision and lasting power of attorney
With an advance directive, you set out in writing which medical treatments you wish to receive or refuse in the event that you are unable to give consent. This may, for example, concern decisions about life-sustaining measures or artificial nutrition. An advance directive must be in writing and signed by you, but does not require notarial certification for medical matters. A lasting power of attorney appoints a trusted person to represent you in medical matters and often other affairs if you are no longer able to do so yourself. Without these powers of attorney, a guardianship court can appoint a legal guardian who may not know your exact wishes. These documents are key components of your preparations for the event of death and safeguard your self-determination until the end.
Clearly define funeral wishes and make financial provisions
You should record your personal wishes for your funeral in writing in a funeral directive. In it, you can specify details such as the type of funeral (e.g. burial, cremation, sea burial), location, the course of the funeral service and the group of guests. A funeral directive is generally binding, provided it complies with the law and the financing appears reasonable. The average costs for a funeral in Germany are between EUR 6,000 and EUR 7,000. As statutory death benefit was abolished in 2004, private funeral insurance is one way to cover these costs. Alternatively, a funeral pre-planning contract can be concluded with a funeral director, and the sum can be deposited in an escrow account. Clarifying these aspects is an important part of preparing for the event of death.
You can set out the following points in a funeral directive:
Type of funeral (e.g. coffin or urn)
Place of burial (cemetery, woodland, sea)
Design of the funeral service (music, speaker, guests)
Design and upkeep of the grave
Designation of a responsible person for the arrangements
Notes on financing (e.g. funeral insurance policy)
These arrangements relieve your loved ones of stress and ensure that your farewell reflects your wishes.
Drafting your last will: Clarifying wills and inheritance matters
A will determines who receives your assets after your death and is a central part of making arrangements for death. Without a will, the statutory rules of inheritance apply, which often do not correspond to individual wishes. A handwritten will must be written entirely by hand and signed; safekeeping at the probate court costs a one-off fee of around 75 euros. A notarised will offers greater legal certainty, with costs based on the value of the estate (e.g. approx. 165 euros for an estate valued at 50,000 euros). Find out about the survivor’s pension and inheritance tax allowances to provide the best possible protection for your heirs. Spouses, for example, have an allowance of 500,000 euros, children 400,000 euros. Careful estate planning can save significant tax and avoid disputes among heirs. Addressing these topics protects your loved ones from unexpected financial burdens.
Managing your digital legacy: managing online accounts and data
The digital estate includes all your online activities and accounts, from email inboxes and social media to cloud storage. In 2018, the Federal Court of Justice ruled that the digital estate forms part of the inheritance and that heirs must generally be granted access. Create a list of all your online accounts, including usernames and passwords, and keep it in a safe place. Appoint a trusted person to manage your digital estate, ideally with power of attorney extending beyond death. Many platforms such as Facebook offer settings for estate management, such as converting the profile to memorial status or deleting it. Arranging your digital inheritance is an often overlooked but important part of preparing for the event of your death. This protects your privacy and spares your loved ones a great deal of effort.
Contracts and memberships: Review and cancel ongoing commitments
In the event of death, not all contracts end automatically. Tenancy agreements, for example, must be terminated by the heirs, often with a notice period of three months. A list of all ongoing contracts (rent, electricity, telephone, subscriptions, insurance policies) makes it easier for those left behind to keep track and give notice. Insurance policies such as life or accident insurance should be informed immediately, as short notification deadlines often apply. Liability insurance usually ends automatically upon death, although informing the insurer may result in a refund of premiums. The motor vehicle insurance also passes to the heirs. A careful list and information about notice periods is an important aspect of preparing for death. This helps you avoid unnecessary further payments and relieves your heirs.
When drafting a will, mistakes can occur without expert advice, which can later lead to significant problems. For example, a poorly worded will can provoke challenges or result in tax disadvantages for the heirs. Our expert tip: Always have complex asset arrangements or specific wishes reviewed by a legal professional to ensure your will is valid. The cost of legal advice is often between 150 and 300 euros per hour, but it can prevent later, far higher costs caused by inheritance disputes. There are also deadlines and formalities to observe when it comes to the payout of a term life insurance policy. An advance healthcare directive should be reviewed regularly, roughly every two years, and adjusted if necessary to ensure it remains up to date. This detailed knowledge is crucial for comprehensive preparations in the event of death. Professional advice can be worth its weight in gold here.
Important aspects for greater expert depth are:
Assessment of testamentary capacity at the time the will is made.
Clear provisions to avoid difficulties of interpretation (§2065 BGB).
Consideration of entitlements to a compulsory portion (§ 2303 BGB).
Optimisation of the inheritance tax burden through skilful structuring.
Provisions for estate administration by an executor (§2197 BGB).
Validity and scope of powers of attorney for precautionary care abroad.
Current rulings on the binding nature of advance healthcare directives (e.g. BGH, XII ZB 61/16).
These points show the complexity and the need for careful planning.
Checklist and final steps: Keep track of things
A comprehensive checklist helps keep all aspects of end-of-life arrangements in view. It should include all important documents, directives, contracts and contacts. Inform at least one trusted person about where this checklist and all relevant documents are kept. Also think about a list of contact details for people who should be notified in the event of your death. To ease the financial burden on your relatives, term life insurance or funeral expense insurance can be worthwhile, especially if there are no sufficient reserves to cover burial costs of an average of €6,000 to €7,000. Careful completion of these final steps rounds off your arrangements. nextsure will be happy to support you in analysing your personal situation and selecting suitable cover solutions.
More useful links
Wikipedia offers a comprehensive overview of inheritance law in Germany, including statutory succession and will drafting.
The German Hospice and Palliative Care Association e.V. provides detailed information about advance directives and their significance 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 written entirely by hand and signed. However, a notarised will offers greater legal certainty and is recommended for complex asset arrangements. The cost of a notarised will starts at around 165 euros for an estate valued at 50,000 euros.
What is the difference between an advance directive and a lasting power of attorney?
An advance healthcare directive sets out which medical treatments you wish to receive or refuse in certain situations. A lasting power of attorney appoints a person to make decisions for you, including medical decisions, if you are no longer able to do so. The two documents complement each other.
What are the allowances for inheritance tax?
Allowances depend on the degree of relationship. 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 persons, an allowance of 20,000 euros applies.
Should I record my funeral wishes in writing?
Yes, it is highly recommended to record 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 tenancy agreement does not automatically end on death. It must be terminated by the heirs, with a notice period of three months generally applying.
How can I organise my digital estate?
Create a list of your online accounts and passwords, keep it safe, and appoint a trusted person to take care of it. If available, use the estate arrangements of the respective platforms.
