The prior heir initially receives the property only for use and administration, while ownership automatically passes to the subsequent heir upon occurrence of the subsequent inheritance.
This restricted power of disposal, particularly in the case of a non-exempt prior inheritance, can have a value-reducing effect on the prior heir's economic position, as they are not permitted to freely sell or encumber the property.
For inheritance tax purposes, a separate valuation and taxation is carried out both when the prior inheritance takes effect and later when it passes to the subsequent heir.
In the case of an unrestricted prior inheritance, the prior heir is subject to strict statutory disposal restrictions, particularly regarding gratuitous dispositions; an unrestricted (exempted) prior inheritance, on the other hand, grants him far-reaching freedoms, which must be ordered by the testator in a will.
A subsequent heir's notice (Nacherbenvermerk) entered in the land register protects the subsequent heir from the prior heir unnoticedly selling or encumbering the property to third parties, and must be taken into account in every valuation.
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