What happened to Hitler's financial assets and possessions is rather simple and followed the procedure of what happens every time in Germany somebody dies without an heir – according to Germany's civil law code §1936, the federal state where the person in question had their last registered address becomes heir of all possessions and fortunes (albeit not their debts).

In the case of Adolf Hitler, this was the state of Bavaria since Hitler had his last registered private residence in Munich from the 1920s. While the Third Reich had ceased to exist as a legal entity with the total capitulation in May 1945, the Allied occupation authorities re-constituted Germany's federal states in June of 1945 as the existing legal successors of the Third Reich and the legal entities they dealt with directly. German law was reverted to the state of 1937/pre-1933 respectively (some laws passed by the Nazis such as the current Straßenverkehrsordnung are still in effect in Germany) in accordance with all these provisions, Hitler's possessions passed to the state of Bavaria in due course of German law.

This is among the reasons, why it was necessary in 2014 to publish a new and critical version of "Mein Kampf". In 2015, 70 years after the author's death, the copyright to Mein Kampf expired, which up to that point had been held by the state of Bavaria. The book itself was never officially outlawed in Germany, but re-printing it and profiting form its sale would see you get hit with copyright infringement claims from the Bavarian government. Bavaria has also in the past stopped people from auctioning off Hitler paintings or other hitler memorabilia and has sued Mongolian companies for unauthorized re-prints of Mein Kampf (the English language publishing rights belonged to another publishing company, which is the reason why there are English re-prints the state of Bavaria must allow).

The sole exceptions to this provision are Hitler's collection of paintings, which were seized by the American occupational authorities in his domicile in Baviaria with the intention of returning it to previous owners and his book collection which was taken by American GIs and only a third of which now belongs to the library of congress.

The state of Bavaria also still uses some of Hitler's possessions: In his privately owned home in Munich's Prinzregentenplatz 16 is a police station today. The fact that Bavaria still uses this house and held on the copyright for Mein Kampf for so long instead of auctioning it off like normally in such cases is due to the fact that the Allies passed laws that the fortune of Nazi leaders could be legally seized by the state for its own purpose – only in case of a conviction however. This lead to the absurd fact that in October 1948, Bavaria tried Hitler in absentia, convicted him and subsequently held on to his possessions for their own use. Next to the house and copyright, this included a bank account with 91 698,77 German Reichsmark. The rest of Hitler's fortune, namely the proceeds from Mein Kampf were lost. All documentation for them had been destroyed during the war and hence the state of Bavaria was unable to seize them.

Hitler did technically have an heir though: His sister Paula tried to claim her part of the inheritance in 1960s. However, with the Allied provisions about seizure of top level Nazis' assets in place, the state of Bavaria simply refused to grant her and the other living siblings their part of the inheritance.