Advisory
Executorship and trust services: a neutral third party
An estate with company shares, a purchase price held until a condition, security for a lender: we stand between the parties and release only what was agreed.
Administration until the estate is divided, as permanent executorship generally up to 30 years. Sections 2197, 2209, 2210 BGB
- Executorship: Testator, Executor, Heirs. Administration until the estate is divided, as permanent executorship generally up to 30 years. (Sections 2197, 2209, 2210 BGB)
- Escrow: Buyer, Trustee, Seller. Payout only once the agreed conditions are met. (Trust agreement)
- Security: Security provider, Trustee, Lender. Return or realisation according to the agreed purpose of the security. (Trust agreement)
Release only once the condition is met
Without an executor, the heirs administer the estate jointly. Without a trustee, one party holds what is due to the other only once the condition is met.
- Agreement or willTask and condition are fixed.Trust agreement, will
- Neutral administrationOn record, reported to all parties alike.Section 2(3) no. 3 WPO
- Condition checkedMet or not, with evidence.Trust agreement
- ReleaseOnly then do we pay out or hand over.Trust agreement
We stand between the parties and release only what was agreed.
When a neutral third party helps
- TestatorThe last will is carried out as written.
- HeirsAn orderly estate; the shares are administered so that the business can still act after the death.
- BuyerThe money is released only once the agreed conditions are met.
- SellerThe retained part sits with the trustee, not with the buyer.
- Security providerThe security comes back once its purpose falls away.
- LenderSecured without holding the security itself.
How the purchase price is secured
Who stands between the parties
- Registered audit firm, member of the IDW (opens in a new tab)Listed with the Chamber of Public Accountants. The German Public Accountant you talk to signs.
- Specialised in energy, sustainability and valuationOur focus areas are energy, sustainability and business valuation. We value under IDW S 1, municipal utilities and grids included.
- With a Big Four backgroundYour German Public Accountant learned auditing at Big Four firms, in financial statement and sustainability audits.
“[…] A collaboration marked by reliability, quality and a clear eye for practical solutions.”
What testators and contracting parties want to know first
Who appoints the executor?
The testator in the will. They may also ask the probate court to appoint one (section 2200 BGB).
How long can an executorship last?
As permanent executorship generally up to 30 years after the death (sections 2209, 2210 BGB).
What does an executor cost?
The fee depends on scope and duration. We state it in writing after the intro call.
What may an executor do?
The executor carries out the testamentary dispositions, administers the estate and disposes of its assets; with several heirs, the executor effects the division (sections 2203 to 2205 BGB). The heir cannot dispose of assets the executor administers (section 2211 BGB).
Can an executor be dismissed?
Only by the probate court, on the application of a party concerned and for good cause, such as gross breach of duty or inability to manage properly (section 2227 BGB).
Can the testator limit the executor’s powers?
Yes, in the will (section 2208(1) BGB), for example to individual assets of the estate such as certain company shares.
Where does our money sit during the escrow?
In an escrow account (Anderkonto) kept for your escrow only. The account holder is our audit firm as trustee; the money is kept apart from our own assets and from other clients' (section 9 of the professional statutes for WP/vBP). If the trustee became insolvent, the balance generally does not form part of the insolvency estate (section 47 InsO).
Who decides whether the condition is met, and what if we disagree?
The escrow agreement defines which evidence triggers the payout, for example a joint instruction from both sides or specified documents. We pay out only against that evidence. We do not decide the dispute itself. Until it is resolved, the money stays in the escrow account, or we deposit it with a public deposit office as the agreement provides or section 372 BGB permits.
Notary escrow or German Public Accountant: what is the difference?
The purchase and transfer of GmbH shares are always notarised (section 15(3) and (4) GmbHG). A notary holds money only where the parties have a legitimate interest in security (section 57(2) BeurkG). A German Public Accountant as trustee can be an option for retentions or price parts that fall due only after closing. Clarify the legal structure with your notary or lawyer.
What does a purchase price escrow cost?
There is no statutory fee scale for it; the fee is agreed. A contingency fee is not permitted (section 55(1) WPO). We take it from the escrowed money only with your express authorisation (section 9(2) of the professional statutes for WP/vBP). We state the fee in writing after the intro call.
Intro call, 25 minutes
Agree the neutral party before anyone signs
Describe the case, ideally before the will or the agreement is signed. In the intro call we clarify which kind of trust fits and what it must govern.
- Describe occasion and deadline
- Clarify what your occasion requires
- Learn scope, timeline and fee range
Helpful: the will, a draft purchase agreement or the loan agreement, where available.
You always speak directly with a German Public Accountant.No cost, no obligation, via Microsoft Teams.
Prefer email or phone?
A reply to every e-mail within 48 hours on working days. If it is urgent, say so and we will answer as soon as we can.
What comes with an estate or trust
- Business valuation
If the estate or trust assets include a holding whose value must be determined.
- Valuing utilities and grids
If the trust assets include shares in a utility or a grid.
- Special audits
If a third party needs assurance on how funds were used.