The question of the applicable law in German-American inheritance cases is particularly interesting against the background of the differences between the Anglo-American legal system (common law) and the continental European legal system (civil law). The question cannot be answered uniformly, but only from the respective perspective.
The German view
From a German perspective, the applicable law since 17 August 2015 through the European Succession Regulation determined. According to Article 21 of the EU Succession Regulation, the habitual residence is decisive. This is the place where the deceased had their actual centre of life at the time of their death. The deceased must also want to reside there and be socially integrated. A choice of law in accordance with Article 22 of the EU Succession Regulation would take precedence. A choice of law can be made in favour of the law of the deceased's nationality at the time of death. You can find further information in our Article on the applicable law under the EU Succession Regulation.
The US view
In the USA, there are no standardised rules according to which the applicable law is to be assessed. Rather, the respective state law (statues) must be observed. In general, however, it can be said that in the USA the connecting factors of the domicile for movable property and the location of immovable property (lex rei sitae).
The domicile must not be confused with habitual residence. The domicile requires a stronger consolidation of residence and the will to stay there and not to return. In this respect, habitual residence is established sooner and domicile before.
From a US perspective, this can lead to a so-called estate division. If the immovable assets are divided according to the law of their location and the movable assets according to the law of the domicile two inheritance rights apply to the same estate but different objects.