Which taxes are incurred when inheriting?
October 30, 2022 | 40,00 EUR | answered by Uwe Herrmann
Dear lawyer,
my name is Friedhelm Schmitt and I am faced with the challenge of inheriting an estate. My uncle recently passed away and has left me his house and a portion of his assets. Now I am concerned about the taxes that may arise from inheriting.
I have heard that there may be different types of taxes that can arise from inheriting, such as inheritance tax, gift tax, or even income tax on the inherited assets. I wonder which taxes are relevant in my case and how much I will have to pay.
Furthermore, I am unsure of how to correctly fulfill my tax obligations and what deadlines I need to keep in mind. I am also interested in whether there are ways to minimize or avoid the tax burden.
Could you please explain in detail which taxes arise from inheriting, how they are calculated, and what steps I need to take to fulfill my tax obligations? Additionally, I would appreciate any tips or strategies for saving taxes.
Thank you in advance for your assistance.
Sincerely,
Friedhelm Schmitt
Dear Mr. Schmitt,
Thank you for your inquiry regarding the taxes that may arise when inheriting. It is understandable that you are concerned about your tax obligations and I would like to help you clarify these questions.
First of all, it is important to distinguish between different types of taxes that may arise when inheriting. The main taxes in this context are inheritance tax, gift tax, and potentially income tax on inherited assets.
Inheritance tax is due when you inherit assets or property as an heir. The amount of inheritance tax depends on the value of the inheritance and the relationship to the deceased. Generally, the closer the relationship, the lower the tax burden.
Gift tax, on the other hand, is due when the deceased has gifted assets during their lifetime. There are also tax-free allowances and tax rates that may vary depending on the relationship.
Additionally, income taxes on inherited assets could also be due if they generate income such as rental income or interest. In this case, these income must be reported in your income tax return and taxed accordingly.
To fulfill your tax obligations correctly, it is important to consider all relevant tax aspects and act in a timely manner. It is advisable to consult a tax advisor or lawyer who can assist you in handling the inheritance.
To potentially save on taxes, you could use tax-free allowances and tax planning strategies. Early tax planning and advice can help minimize the tax burden and take advantage of potential tax benefits.
I hope that this information has been helpful to you. If you have any further questions or need assistance, please feel free to contact me.
Best regards,
Uwe Herrmann
Estate lawyer
