What taxes are incurred when inheriting a property?
August 2, 2022 | 40,00 EUR | answered by Uwe Herrmann
Dear law firm,
I am reaching out to you as I recently found out that I have inherited a property and am now unsure about the taxes that may apply. My aunt has passed away and left me her house, which I will now be taking over. However, I am not sure if I have to pay taxes and to what extent they might be. I am concerned that unexpected costs could arise and therefore would like to have more clarity on this matter.
I would like to know what taxes may apply when inheriting a property and how high they could be in my specific case. Are there ways to avoid or reduce taxes? What steps do I need to take to clarify and potentially optimize the tax aspects of inheriting?
I would greatly appreciate your professional assessment and advice on this matter, as I do not have sufficient knowledge in tax law. Thank you in advance for your support.
Best regards,
Maria Völker
Dear Mrs. Völker,
I understand your concerns regarding the tax burden when inheriting a property, and would like to help you gain clarity on the tax aspects of your inheritance.
When inheriting a property, various taxes may apply, which can vary depending on individual situations. Firstly, there is the inheritance tax, which is calculated based on the value of the inherited assets. There are different tax classes and exemptions for close relatives, such as children or spouses, and more distant relatives, such as nieces and nephews. The specific amount of inheritance tax depends on the tax class you are in and the value of the property.
In addition to inheritance tax, there may also be real estate transfer tax if you take over the property. This tax is calculated based on the purchase price or the value of the property at the time of inheritance. There are different tax rates depending on the state in which the property is located.
There are various ways to avoid or reduce possible taxes. One option is timely planning and structuring of your inheritance, for example through setting up a will or using exemptions and tax benefits. Transferring the property during your lifetime or setting up a gift may also offer tax advantages.
To clarify and optimize the tax aspects of your inheritance, I recommend seeking advice from an experienced tax advisor or lawyer who can provide competent guidance. Together, you can analyze your individual situation and find the best solutions for you.
I hope that this information has been helpful to you, and I am available for any further questions you may have. Thank you for your trust, and I wish you all the best in handling your inheritance.
Best regards,
Uwe Herrmann
