They have a section in the Terms and Conditions that addresses this:
2.5. Mileage expiry
Any mileage not redeemed within 36 months of the date of accrual (date
of flight, start of hotel stay, time of car rental) will expire at the
end of that quarter (e.g. miles expiring in August of any given year
would expire at the end of September of that same year), failing other
arrangements published in the Miles & More communication media.
Attention will be drawn in good time to the date and extent of the
lapsed mileage in the Miles & More account information or in the
personal Internet mileage account.
This is a harder policy than many other Star Alliance members follow. For example Air Canada Aeroplan miles last 7 years from the year you earned them, but if you have 12 months of no Aeroplan activity you can lose everything. You should consider these policies when choosing which loyalty program to put your miles in, since you can join any Star Alliance member and earn and redeem on your home airline.