Custodians as, for example, credit institutions are liable in case of negligence or intention insofar as they transfer assets of the deceased (e.g. bank deposits) abroad before the Inheritance Tax is paid or secured. In order to avoid liability, the custodian should request a tax clearance certificate from the tax office.
The aforementioned regulations also apply if costs due to the deceased’s death are at hand. These include, inter alia,
o medical and hospital costs,
o costs of the funeral,
o costs of the grave and its maintenance,
o payments for a claim to a compulsory portion,
o rent, water, fuel and power.
For more details regarding the liability of custodians (credit institutions, insurance companies, lawyers, notaries, tax advisors, fiduciaries, executors) see Koeniger, The German Inheritance and Gift Tax, 2017, p. 66 et seqq.