How can I transfer my capital assets in a tax-optimized way?
October 7, 2022 | 40,00 EUR | answered by Robert Kockel
Dear tax advisor,
My name is Carsten Blumberg and I am facing the question of how to transfer my capital assets in a tax-optimized way. The background is that in the coming years, I would like to pass on my wealth to my children in order to financially secure them. Currently, my capital assets consist of various securities, savings accounts, and an investment fund.
My main concern is to minimize the tax burden during the transfer. I am worried that improper decisions could lead to high taxes and a significant loss of my wealth. I also want to ensure that I transfer the wealth to my children in a tax-optimized way so that they can benefit from it as much as possible.
I have heard about gift and inheritance taxes, but I am unsure about the best way to navigate them. Are there ways to transfer my capital assets in a tax-optimized way during my lifetime? What tax aspects should I consider and what tax exemptions are available to me?
Can you provide me with specific tips on how to best transfer my capital assets to my children without having to pay high taxes? I would greatly appreciate your professional advice and support on this important matter.
Thank you in advance for your help.
Sincerely,
Carsten Blumberg
Dear Mr. Blumberg,
Thank you for your inquiry regarding the tax-optimized transfer of your capital assets to your children. It is understandable that you are considering how to financially secure your children without having to pay high taxes. I can provide you with some tips and information that can help you in the planning and implementation process.
First of all, it is important to know that there are various ways to transfer capital assets in a tax-optimized manner. One option is through gifting during your lifetime. There are gift exemptions up to which no taxes are due. Currently, the exemption for children is 400,000 euros every 10 years. This means that you can gift your children up to this amount tax-free every 10 years. If the value of the gift exceeds the exemption, gift tax is payable. This tax depends on the relationship and the value of the gift.
Another option is transferring assets as part of an anticipated inheritance. In this case, a portion of the assets is transferred to the children during your lifetime in order to reduce the size of the inheritance later on. Again, there are gift exemptions that can be utilized every 10 years.
It is important to consider tax aspects when transferring capital assets. This includes a detailed evaluation of the assets to determine the value for the gift or anticipated inheritance. You should also consider possible tax planning strategies to minimize the tax burden. A tax advisor can assist you in finding the optimal solution for your individual situation.
I recommend that you consult with a tax advisor early on to receive comprehensive advice. Together, you can analyze your financial situation and develop a strategy to transfer your capital assets to your children in a tax-optimized manner.
I hope this information is helpful to you and I am available to answer any further questions you may have. Thank you for your trust and inquiry.
Best regards,
Robert Kockel
