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How heirs save a fortune

The transfer of wealth between generations is often underestimated in Germany. Every year, billions of euros are inherited or given away, and the trend is rising. This development opens up a promising market for you as an intermediary or broker.

Record sums in inheritances and gifts

Current statistics show that Germans increasingly want to pass on wealth to their relatives, through inheritances and gifts. In 2025 alone, this came to around €150.5 billion, according to the tax authorities. That is an increase of 32.9% on the previous year. Gifts, often used to make the best use of tax allowances, rose by 28.7% to €63.2 billion. [Source: Federal Statistical Office (Destatis)]

These transfers of wealth are a significant source of revenue for the state, much to the regret of those affected, because high tax burdens can considerably reduce the wealth transferred. Without careful planning, there is a risk of tax pitfalls, unused tax allowances and potential double taxation. This is where you come in.

The wish to give and the reality of inheriting

Most Germans intend to pass on their wealth to family and partners. Despite good intentions, many inheritance cases end up in court. Inheritance disputes are estimated to account for more than 28% of all private lawsuits. Dealing early with the question of how to pass on an estate without disputes is therefore essential. [Source: Deutschlands großer Streitatlas 2019, published by Advocard/Generali Deutschland]

It is equally important to note that inheritance tax, at rates of up to 50%, can considerably reduce an inheritance. In addition, wills often offer only limited room for arrangement. Unmarried couples in particular face special challenges, because the partner is excluded from statutory inheritance. As a result, clients want:

• Tax optimisation: minimising inheritance and gift tax by making the best use of tax allowances.

• Flexibility: individual arrangements for the transfer of wealth that can be adapted to changing personal circumstances.

• Security: clear rules that protect against inheritance disputes and preserve family harmony.

• Long-term wealth accumulation: continuing the investment across generations.

Stand out with expert knowledge

This is exactly where there is high client potential. Offer clients solutions that meet these needs now. Fund-linked life insurance policies in particular are becoming increasingly important as generational tariffs. Liechtenstein Life Wealth stands out with features including these:

Fund-linked life insurance with a generational focus:

• Flexible contract design: several policyholders, insured persons and beneficiaries can be included in the contract. This makes it possible to take individual and complex family constellations into account.

• Tax advantages: with a skilfully designed contract, gift tax allowances can be used to best effect. If more than ten years pass between two gifts from the same person, the recipient's personal tax allowances are available again in full (§ 14 ErbStG, the German Inheritance and Gift Tax Act).

• Long-term investment: your clients' wealth stays invested. It can continue to generate returns. This supports sustainable wealth accumulation.

Termfix options:

• Individual payout dates: your clients stay in control. With the Termfix option, the insurance benefit can be paid out at a time the client chooses, for example linked to specific events such as completing an apprenticeship or degree or reaching a certain age.

These parameters open up a wide range of possible arrangements. A generational insurance policy such as Liechtenstein Life Wealth can thus be tailored precisely to clients' situations. It takes tax, legal and personal aspects into account, and in many respects it is often a better option than a will.

Your benefits at a glance

That is why engaging in depth with inheritances and gifts opens up rewarding prospects for intermediaries and brokers:

• A larger client base: approaching wealthy clients and specific target groups opens up new business areas for you.

• Higher revenue: distributing sophisticated products and building a sustainable portfolio lead to significantly higher income.

• Positioning as an expert: specialist knowledge sharpens your advisory profile and sets you apart from competitors.

• Long-term client loyalty: comprehensive advice builds trust and leads to lasting client relationships across generations.

Despite the opportunities, the topic is complex and calls for sound knowledge of tax and legal questions. Many brokers and intermediaries recognise the need for further training. Liechtenstein Life can support you here as a competent partner. With the expert solution Liechtenstein Life Wealth, you offer special added value in the market.

Book a meeting now!

Conclusion

The fast-growing market for inheritances and gifts gives intermediaries and brokers an attractive opportunity to make a name for themselves as experts. With the right know-how and suitable solutions, you can help your clients pass on wealth securely and effectively to the next generation.

The value of your investment can fluctuate.

Article published by Prosperity Solutions AG