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Legal Status of Islamic Bank Accounts in Germany After the Account Holder’s Death:
What Happens to Islamic Accounts (e.g. Al-Baraka) Between German Law and Islamic Rules?
In this article, we explain the legal status of Islamic bank accounts in Germany after the death of the account holder, including:
The fate of Islamic bank accounts in Germany (such as Al-Baraka) – at the intersection of German inheritance law and Islamic legal principles.
1. Are Islamic bank accounts treated like regular accounts upon death?
Yes, under German law:
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Every bank account in Germany – whether held at a conventional bank or an Islamic bank – is, upon the holder’s death, considered part of the estate (Nachlass).
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It is subject to the same rules of German inheritance law (Erbrecht under the BGB), including:
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Freezing of the account after notification of death
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No withdrawals without proof of inheritance (Erbschein or equivalent)
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Distribution of the balance according to statutory succession rules or a valid will
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In other words:
An Islamic bank has no independent religious authority to distribute funds according to Islamic inheritance shares without:
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an order from a German court or
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corresponding official German documents.
2. What happens procedurally when the account holder dies?
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The bank freezes the account as soon as it is formally informed of the death
(e.g. via the civil registry office or an official notification from an heir). -
The bank will usually request the following documents from the heirs:
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Death certificate (Sterbeurkunde)
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Certificate of inheritance (Erbschein) or a notarised will
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Proof of identity and relationship to the deceased
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If available: a bank power of attorney (Kontovollmacht) granted before death
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No funds are released until all legal checks have been completed.
3. Do Islamic banks handle inheritance differently from a religious perspective?
From an Islamic legal perspective:
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The estate should be distributed in line with the rules of Islamic inheritance law (farāʾiḍ)
(e.g. the male’s share equal to that of two females, fixed shares for spouse, parents, etc.). -
Some Islamic banks – such as Al-Baraka or Kuveyt Türk – may offer services for Sharia-compliant inheritance distribution in their home jurisdictions (e.g. Turkey, Gulf countries).
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In Germany, however, these banks:
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cannot autonomously implement Islamic inheritance distribution,
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unless there is an underlying German legal basis, such as:
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a valid Islamic will, compatible with German formal requirements, or
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a court decision recognising and enforcing such a will.
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Therefore:
If you want your Islamic account in Germany to be divided according to Islamic law, you should:
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draw up an Islamic will (Testament according to Islamic inheritance rules) with a German notary, ensuring it meets German legal formalities,
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and submit a formal application to the competent German court for its enforcement upon death.
4. What if the account is held at an Islamic bank outside Germany?
If the account is with, for example:
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a branch of Al-Baraka, or
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an Islamic bank in Turkey or the Gulf region,
then:
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the estate generally does not directly fall under German inheritance law,
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but is instead governed primarily by the laws of the country where the bank is located.
However, heirs living in Germany must still prove their legal status as heirs, typically by:
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obtaining a German certificate of inheritance (Erbschein),
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having it translated and officially certified,
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arranging consular legalisation where required,
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and granting a power of attorney to a lawyer or representative abroad to manage the estate.
5. Can an Islamic bank in Germany refuse to comply with a German court decision?
No. If the bank is operating within Germany – for example:
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Kuveyt Türk Bank AG, or
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Albaraka Türk – Frankfurt,
it is bound by German law and must:
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release the balance to the legally recognised heirs once an Erbschein or equivalent proof is presented,
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refrain from carrying out any purely “Sharia-based” distribution unless it is explicitly set out in:
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a valid German will,
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an inheritance contract, or
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a court order,
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and comply with any due inheritance tax (Erbschaftssteuer) obligations.
6. How can you protect your funds in an Islamic account so they are distributed according to Sharia?
Practical tips:
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Draft an Islamic will, notarised by a German notary, clearly requesting that your estate be divided according to Islamic inheritance law.
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Inform your bank that this account forms part of an Islamically planned estate (for example, by depositing a copy of the will or adding a written note where possible).
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Keep a clear, written record of your Islamic heirs, indicating their relationship and shares.
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Make sure your heirs know about the account and where it is held.
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Consider granting a bank power of attorney during your lifetime to a trusted person, within legal limits, to help avoid complete blockage—while carefully checking any legal and tax implications.
Conclusion
Islamic bank accounts in Germany – such as those held with Al-Baraka or Kuveyt Türk – are legally treated like any other bank account.
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They form part of the estate (Nachlass).
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Their distribution follows German inheritance law (BGB) by default, not Islamic law.
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A Sharia-compliant division is only possible if:
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there is a clear, legally valid will that is compatible with the BGB, or
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all heirs voluntarily agree after death to apply Islamic inheritance rules.
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Thoughtful estate planning in advance allows you to honour Islamic principles while staying within the framework of German law.
* The editorial team of this website aims to provide accurate information based on careful research and consultation of multiple sources. Nevertheless, errors or uncertainties may occur. The content of this article should therefore be viewed as an initial point of reference; for binding, definitive information, please always consult the competent authorities and professional advisers.
