Inheritance tax
The inheritance tax declaration after an inheritance and the gift tax declaration in the case of donations among living are one thing, planning well in advance is another. Calmness, trust and immersion in family relationships are part of the conversation in private.
What is inheritance tax?
Gift tax and inheritance tax are in the same law, the Inheritance Tax Act. For a long time, the tax-free amounts of EUR 500,000 have applied to spouses, EUR 400,000 to children of each parent, EUR 200,000 to grandchildren of each grandparent, and a few more tax-free amounts, each new every 10 years. Inheritance tax law becomes complex when it comes to the valuation of real estate and business assets. Basically, businesses can be given away or inherited completely or largely tax-free. To this end, the successors must observe deadlines and rules for the years following the receipt of the business. For the structuring of gifts or even after an inheritance, tax-free amounts, valuations, retention periods and so-called generation skipping, i.e. rejecting an inheritance in favor of the next generation, are important. Pensions, usufruct, one-off payments and equalization payments between heirs are part of the toolbox. From a tax perspective, foreign assets are not to be trifled with: There are only a few agreements, for example with France, the USA, Switzerland and two or three other countries to avoid double taxation in gift and inheritance tax law. The only thing that really helps here is planning in advance coupled with the appropriate expertise here and abroad.
How do i save money?
With a view to the entire family and all the assets up for transfer, a process is thus set in motion. But saving taxes is not everything. What do the assets with children do? If only one knew that in advance! Are the assets an incentive to stop taking one’s education so seriously, to raid one’s accounts or to confide in partners in whom one’s parents may have less trust? These are honest thoughts. So is the desire to maintain justice among siblings and family tribes. This is where life experience of counsellors is needed, on the one hand, and sometimes the execution of wills up to a year of life when education has been completed and some life experience gained. But above all – trust. Because: saving money is not everything.
What Steu-Dat can do for you?
Family pool, foundation, repatriation of foreign assets we can plan and implement with you. We prepare and explain the tax returns for the tax office and the associated appendices for the valuation of the individual asset components. We plan wills from a taxation point of view and discuss with you who from your circle of friends, relatives and other advisors could be considered for executing such a will. It is good if there are one or two people who know the spirit of the contracts you want. It is always good if your trusted notary is also involved in good time. We are happy to take on a task here.
Further services
We plan with you. Tell you what works and what doesn’t and explain the tax law in an understandable way. We don’t complicate things.
Asset building
Your own company, rented real estate, a securities account with shares, distributing or accumulating funds – even statutory or private pension insurance contribute to asset accumulation. We will work this out with you!
Income tax
It’s all about one thing: more net from gross. It’s best if we plan your income and savings measures together. You can get a few things right in terms of income tax, but it is better to reduce your income in the current year in good time.
Gift tax
Inter vivos transfers open up long-term design plans. We explain Berlin and Württemberg wills, usufruct, generation skipping, family pool and other structuring instruments. All this also for assets abroad.
Your contact person
Vera Goebel
Managing director, tax consultant, lic. oec HSG