Donation of money and car by aunt
January 24, 2012 | 30,00 EUR | answered by Dipl.BW/SB Ulrich Stiller
The situation is as follows:
In March 2011, my wife's aunt gave us 18,000.00 EUR and in July 2011, 20,000.00 EUR as gifts (without a written contract). In March 2011, she also gave us her car (worth 8,000.00 EUR, also without a written contract). In November, the aunt passed away. She had designated my wife as the sole heir in her will back in 2008. The aunt's son was disinherited.
Now my questions are:
The gifts totaling 38,000.00 EUR and the transfer of the car were not reported to the tax office at the time due to our ignorance. Will these gifts be attributed 100% to my wife, or can the amounts be divided between my wife and myself so that we each fall below the gift tax exemption of 20,000.00 EUR? The money was transferred to our joint account. Will gift tax apply to the transfer of the car? There is currently an estate of approximately 60,000.00 EUR. After deducting the gifts, there is an assessable estate of 106,000.00 EUR. We will pay the aunt's son 53,000.00 EUR (50% compulsory share or compulsory share claim). How much inheritance tax do we still have to pay on the remaining amount?
Dear inquirer,
Thank you for your inquiry, which I would like to answer based on your information and in the context of your commitment within a first consultation as follows:
The gifts from March and July 2011 totaling 38,000 euros were deposited into the joint account according to your information. Therefore, they should be considered equally. The car is not taken into account, as it was owned by the aunt and only passed to your wife upon her death. Since the gifts were made within 10 years before the aunt's death, they are included in the inheritance tax return. Filing a separate gift tax return was not necessary, as the tax-free amounts of 20,000 euros each were not exceeded. The compulsory share or compulsory supplementary claim constitutes an estate liability that reduces the assets.
The calculation on the date of death is as follows:
Assets 60,000
plus
Car 8,000
plus
Half
gift
to wife 19,000
minus
Estate liability 53,000
minus
Funeral cost lump sum 10,300. If the actual costs are higher, they will be used.
minus
Tax-free amount 20,000
The inheritance tax amounts to: 3,700
I hope I was able to assist you.
Yours sincerely
Ulrich Stiller
Tax consultant/Diploma in Business Administration
