If property changes due to death, i.e. in the context of the inheritance, the owner, this usually incurs inheritance tax. However, numerous exceptions and allowances must be observed, which reduce the taxable amount before the tax is incurred. We show how the inheritance tax can be completely avoided and the concrete importance of tailor-made succession planning.
1. The inheritance tax: when does it arise?
§ 3 ErbStG defines when a taxable acquisition of death is present. The term “acquisition on account of death” covers all capital transfers which have their origin in the death of a person. In addition to inheritance (§ 1922 BGB), advantages arising from bequests (§ 2147 BGB) and claimed compulsory portions (§ 2303 BGB) therefore also belong to the acquisitions taxable under § 3 ErbStG.
The inheritance tax also arises
This article does not replace tax or legal advice in an individual case. Facts, current law, jurisdiction, documentation and implementation remain decisive.