We advise you on inheritance and gift taxes by providing:
- A review of tax liability for inheritance and gift taxes
- Advice on design options and allowances
- Preparation of the necessary tax returns
A gift and inheritance are subject to tax liability. There are allowances and design options that you can use.
The inheritance or the gift of property are taxed by inheritance and gift taxes.
Inheritance tax is payable upon receipt of the inheritance. Gift tax is due when a gift is received. The heir or the recipient is taxable. Inheritance and gift tax basically includes all assets. Real estate, shares and bank account balances are taxed. The amount of inheritance tax depends on the amount of the inheritance. The degree of kinship also determines the amount of inheritance tax. Close relatives have higher allowances than distant relatives. The law provides a tax-free allowance of € 500,000 for spouses and a tax-free allowance of € 400,000 for children.
There are different tax classes. Heirs are divided into classes based on the degree of kinship. The lower the tax bracket, the lower the tax rate for the heir.
There is a tax exemption for close relatives. Household items are then not subject to taxation. There can also be a tax exemption for the spouse’s own living space. For this purpose, the living space must also be used by the heir up to the inheritance and the heir must continue to live in the property. In addition, corporate assets are privileged by inheritance tax.
Inheritance tax can be avoided or reduced by a specialist lawyer for tax law. Not only can the allowances for inheritance tax be used optimally, our law firm can also show other ways of reducing inheritance tax, for example through marriage. Retirement planning helps to ensure that wealth is transferred to the next generation.
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