Inheritance by the State of Saxony: A Mixed Bag of Surprises
The Free State of Saxony, in eastern Germany, has once again inherited a substantial number of properties and assets in the past year. While the total number of inheritances has decreased slightly, the financial proceeds have increased significantly.
A Steady Stream of Inheritances
In 2024, the state inherited 1,263 properties, 57 fewer than in the previous year. The inheritance of these so-called "fiscal inheritances" occurs when a court cannot identify any other heirs or when the estate is rejected due to excessive debt. In such cases, the state is legally bound to accept the inheritance.
The majority of inheritances go to the state in which the deceased person had their last residence. The State of Saxony has accumulated 3,245 fiscal inheritances to date, with 1,565 cases closed in 2024.
Financial Implications
The state’s revenue from inheritances amounted to approximately 8.7 million euros in 2024, around 600,000 euros more than in 2023. However, the cost of managing and securing inherited properties also increased to 3.3 million euros, half a million euros more than the previous year.
After accounting for personnel and material costs, the state ended the year with a surplus of over 3.3 million euros, slightly lower than the 3.4 million euros in 2023.
A Diverse Range of Inheritances
The state’s inheritances encompass a wide range of assets, including houses, garages, allotments, farms, and commercial properties. However, many of these properties are often heavily indebted or require significant maintenance, which reduces their profitability.
In 2024, the state took over an abandoned medical practice, requiring the proper disposal of sensitive patient records. Another inheritance included a stable building and a residential house, but the land belonged to a third party. The deceased had operated an animal sanctuary for circus animals, leaving behind a heavily littered property with traces of monkeys and lions.
The Process of Inheritance
When relatives reject an inheritance or no heir can be found, the estate legally falls to the state. Personal belongings, such as cars, jewelry, and electronics, are often sold through auction houses or estate liquidators.
However, if an heir emerges within 30 years of the deceased’s death, the state is legally obligated to surrender the inherited property or proceeds.
The Challenges of Fiscal Inheritances
According to Martin Oberacher, head of the Central Land Management division of the state-owned enterprise, fiscal inheritances are rarely lucrative for the state. "Often, these houses, garages, allotments, farms, or commercial properties are over-indebted, and maintenance obligations for properties as well as personnel and material costs reduce or even entirely consume the profit from an inheritance," he explained.
A Glimpse into the Lives of the Deceased
The diverse nature of the inheritances offers a glimpse into the lives of the deceased individuals. From a medical practice to an animal sanctuary, each inheritance tells a unique story.
The state’s responsibility for managing these inheritances ensures that the deceased’s property is handled respectfully and disposed of in accordance with legal and ethical standards.
