Defensive offer, or have house prices become so expensive?

I am not a tax advisor, but my naive brain comes up with something like this:

...

No tax paid

Thank you for your effort, but unfortunately I don’t quite follow. I’m not a tax advisor either, but at the moment it looks more like this in my opinion:
Inheritance estate 1.7 million
Child 1 allowance 400K
Child 2 allowance 400K
Grandchild allowance 200K

Taxable: 700K at 19% = 133K. Oof.

Thank you for your effort, unfortunately I don’t quite get it. I’m not a tax advisor either but at the moment it looks to me more like this: Estate 1.7 million Child 1 exemption 400K Child 2 exemption 400K Grandchild exemption 200K Taxable: 700K at 19% = 133K. Oof.

Oh, so the mom doesn’t get anything or what. ☺️ ☺️ ☺️ ☺️ ☺️ ☺️

Regardless of the fact that you, as siblings, are attached to the house, I fundamentally do not think it is good to keep real estate things with the intention that the child/grandchild could continue to use it.

Even if owner-occupation is not relevant, the (great) grandchildren would have the rental income as a regular financial boost.

I understood, your father is still alive? Did he inherit alone from your mother? Is the procedure already completed? You should definitely inherit jointly from the mother's estate. If the will excludes grandchildren, then unfortunately that is correct. But the amount is already very reduced if only you receive your share of the inheritance.

As far as I know, you do not have to pay VAT on the estate?!

Oh, so mom doesn't get anything or what. ☺ ☺ ☺ ☺ ☺ ☺

I had understood your father is still alive?

Unfortunately, my mother passed away in 2017. Luckily, my father is still alive.

Oh, I see! Yes, that is obviously unfortunate. But one could have taken precautions in time. Now it might be possible to manage something with sale and gift, maybe even foundation for [dienkel/Urenkel], but that is really something for the tax advisor.