Instruments for Preserving the Unity of Family Businesses and Agricultural Assets: The German Perspective

Löhnig, Martin (2026) Instruments for Preserving the Unity of Family Businesses and Agricultural Assets: The German Perspective. In: Instruments for Preserving the Unity of Family Business and Agricultural Assets: Perspectives of Legal History. Legal Heritage . Central European Academic Publishing, Budapest, Miskolc, pp. 77-93. ISBN 978-615-7027-30-5

Preview

Text Chapter 3.pdf - Published Version Available under License Creative Commons Attribution Non-commercial No Derivatives. Download (229kB) | Preview

Abstract

This article traces the evolution of German agricultural succession regimes, from state-level hereditary farm laws and the Reich Hereditary Farm Act (1933–1947) to the post-war reinstatement of regional frameworks, showing a persistent doctrinal tilt toward testamentary freedom constrained by public-interest aims. It analyses the contemporary mix of the Farm Inheritance Acts (e.g., the Northwest German Höfeordnung), the Civil Code’s special rules (§§ 2049, 2312 BGB), and the Real Property Transactions Act allocation procedure, all designed to preserve viable family farms while limiting fragmentation and over-indebtedness. In practice, continuity is chiefly secured through notarised inter vivos arrangements (farm transfer agreements with retirement portions, calibrated sibling compensation, and related waivers) supplemented by the 2024 reform of the Northwest Höfeordnung, which ties minimum compensation to 0.6× the property-tax value and permits liability deductions up to 80%. By contrast, non-agricultural family businesses lack a special statutory regime, so effective transmission depends on private ordering (wills, compulsory-portion waivers, and family foundations) within the enduring tension between enterprise continuity and equal-heir protection.

Actions (login required)

View Item