Can I transfer assets to my future heirs during my lifetime?
November 28, 2022 | 40,00 EUR | answered by Mia Widmann
Dear estate lawyer,
My name is Lucas Weise and I have a question regarding the transfer of my assets to my future heirs during my lifetime. Currently, I am in a stable financial situation and would like to take precautions early on to make it as easy and stress-free as possible for my heirs to inherit later on.
I have heard that it is possible to transfer assets to future heirs during one's lifetime in order to take advantage of tax benefits and avoid potential inheritance disputes. However, I am unsure if this is advisable and legally possible in my specific case. I want to ensure that my decisions are in compliance with current laws and that my heirs are not disadvantaged.
My concerns mainly lie in not knowing exactly how an early transfer of assets can be legally structured and what the tax implications may be. Additionally, I want to make sure that my future heirs actually benefit from an early transfer and do not suffer any disadvantages from it.
Could you please explain in detail whether and how an early transfer of assets to my future heirs is possible? What legal and tax aspects need to be considered and what options are available to optimize such a transfer? I would greatly appreciate your professional advice and support on this matter.
Sincerely,
Lucas Weise.
Dear Mr. Weise,
Thank you for your inquiry regarding the transfer of your assets to your future heirs during your lifetime. It is indeed possible to transfer assets to heirs during your lifetime in order to take advantage of tax benefits and avoid potential inheritance disputes. This practice is also known as anticipated succession.
There are various legal and tax aspects to consider when transferring assets prematurely. Firstly, it is important to know that such a transfer is only possible under certain conditions. Firstly, you as the donor must be willing to transfer your assets to the heirs during your lifetime. Secondly, the heirs must agree to the transfer.
A premature transfer of assets can be done in the form of a gift or anticipated succession. In a gift, you transfer your assets to the heirs during your lifetime without them having to provide any consideration in return. In anticipated succession, however, the transfer is considered as part of the future inheritance, so the heirs must provide compensation for the transfer.
In terms of tax aspects, it is important to know that gifts and anticipated successions are tax advantaged. There are exemptions up to which a gift can be tax-free. Furthermore, by transferring assets early, you can reduce or even avoid the inheritance tax burden for your heirs.
To optimize a premature transfer of assets, I recommend seeking legal advice. A lawyer specializing in inheritance law can inform you about all legal and tax aspects and assist you in designing the transfer. Together, you can find the best solution for your individual situation.
I hope that this information has been helpful and I am available for any further questions.
Best regards,
Mia Widmann
