Defensive offer, or have house prices become so expensive?

Yes, you are right. The real problem is often not the tax, but rather paying out the siblings, if any. Ultimately, the conclusion remains the same: private households rarely benefit from the massively increased real estate prices. For example, if a property is "left over" in the family or when moving out of ownership and into renting. Or through the mentioned refinancing. In some way, the gain has to be realized, but at least in my filter bubble this happens rather rarely... How is it with you?

It happens surprisingly often with us. In the last 10 years, most of our friends have become millionaires through inheritances of real estate. And that as classic middle-class families with housewife marriages of the parental generation.

I also see it that the inheritance is the smaller problem. The tax exemptions are quite large and people who now inherit houses also had more than one child. If you use it yourself, no inheritance tax is due anyway. More critical is when the dear siblings want to be paid out their share of 500k.

I cannot confirm that. A "normal" house in a sought-after location of a big city with a bit of land is quickly worth 1 to 2 million, where we paid 400K 30 years ago. The exemptions are quickly used up and you are immediately forced to sell. Usually, the heirs are adults with their own households and not willing to move into the "family home." A kind of expropriation, if you ask me. After all, the house and land have already been taxed many times over. The exemptions can no longer keep up with rising property prices. An adjustment is urgently needed.

A property worth 1 million, 3 children each with a 400k exemption --> tax-free
Property 1 million, 2 children each with 400k, minus 10% for rented property --> 3.5k per child
Property 2 million, 2 children each with 400k exemption, minus 10% for rented property --> 75k inheritance tax per child

That sounds like a lot at first, but a property worth 2 million should also provide corresponding cash flows when rented. I absolutely do not see any major disadvantage here. Whoever inherits one million can also pay 75k inheritance tax

I cannot confirm that. A "normal" house in a desirable location of a big city with a bit of land attached is quickly worth 1 to 2 million, whereas 30 years ago we paid 400K. The exemption amounts are quickly used up and you are immediately forced to sell. Most of the heirs are also adults with their own household and not willing to move into the "family home." A kind of expropriation, if you ask me. After all, the house and land have already been taxed many times. The exemptions can no longer keep up with rising real estate prices. An adjustment is urgently needed.

Well... then the property has increased in value by something like 4% p.a. Basically, I agree that the exemption amounts should be reconsidered, but I don’t see the problem as that big. Often more than one child, then we’re already at an 800k exemption or more. In case of personal use, the inheritance tax for the heir is waived.

But roughly calculated, for an inheritance of 1 million a child pays about 100k inheritance tax. For that you get a property with no idea, 2500 EUR rental income? I still don’t see where the forced sale comes from. Either money was also inherited, and if not I want to see the bank that doesn’t finance that....

I’ll say something provocative now: Why allow inheritances at all? Everything should go to the state. One may stipulate that everything is donated to a charitable institution. What would be the social and economic consequences of that?

In any case, I will either mortgage my house or sell it with a right of residence and spend and donate the money. My child(ren) will get nothing except for a small amount and sentimental heirlooms.

What would be the societal and economic consequences?

Civil war? Five, four, three, two, one....