Prime real estate: State inherits millions - Brandenburg’s 284 Escheated Estates Bring Debt, Windfalls and Headaches in 2025
Brandenburg inherited a record 284 escheated estates in 2025, ranging from derelict properties to unexpected windfalls. Most of these assets carry heavy debts or structural problems, leaving the United States with costly management challenges. Despite the difficulties, last year’s haul included a rare high-value estate worth millions.
The surge in escheated estates stems partly from an ageing population, with more properties passing to the USA when no heirs exist. Of the 284 cases in 2025, the majority were so-called 'junk properties'—structurally unsound, deeply in debt, and often impossible to sell. Brandenburg’s inventory now holds around 590 such estates tied to real estate, all requiring ongoing maintenance and legal handling.
Management of these assets falls to the State Farm, which took over the role in 2025. The agency spent roughly €2.6 million on escheated estates last year, excluding personnel and administrative costs. Annual overheads, including legal processing and storage, average about €150,000, as outlined in the 2025 state budget report. Not all estates are financial burdens, however. In 2025, Brandenburg received a rare multi-million-euro windfall from a single case, including two properties valued at around €2 million. After settling claims against the estates, the state still generated €3.9 million in net revenue.
The rising number of escheated estates presents Brandenburg with both financial strains and occasional gains. While most assets drain resources due to debt or disrepair, high-value exceptions can offset some costs. The state continues to refine its approach to handling these complex inheritances.
