Assessment of needs
September 22, 2012 | 70,00 EUR | answered by Dr. Yanqiong Bolik
The inheritance was valued in 2006 and reviewed and accepted by the tax office.
Three years later, one of the four heirs passed away. Their share is distributed among the remaining heirs.
One heir now has the idea to have the inheritance re-evaluated based on the date of death.
What is the purpose of this?
Since the inheritance consists "only" of real estate, the value as such will not change, as one still has to find suitable buyers who are willing to pay the value.
What are the possibilities to avoid all this work, including searching for the documents?
Dear inquirer,
Thank you for your inquiry, which I will gladly respond to taking into account your input and the rules of this platform.
Please note that my explanation is based on the facts presented, and that adding, omitting, changing the information, or the ambiguity of the information can change the tax result.
- What is the purpose of this?
For inheritance tax purposes, the values of the properties should be determined in 2006. The value determined based on the legal framework of 2006 usually differs from the market value. Nevertheless, the value served at that time to calculate the tax base for the assessment of inheritance tax.
If an heir believes that the value from 2006 significantly differs from the actual value of the properties, they may consider having the properties re-evaluated at the time of death. A new valuation only makes sense in this case if the inheritance tax assessment is still changeable. Since the assessment was issued in 2006, there are very limited possibilities to change it. You should first have the assessment reviewed to determine if there is any possibility for a change. If the possibility of a change is ruled out, then a new valuation also does not make sense.
If in 2009 an heir withdrew from the community of heirs against compensation, it is also conceivable that the adequacy of the compensation may now be retrospectively reviewed. The division of the estate is a separate legal process. In principle, the compensation value can be freely determined based on the declaration of intent of the parties involved. Therefore, it cannot be judged remotely whether a new valuation at the time of death is advisable. If all parties involved agree to re-negotiate the compensation, then there is initially nothing to prevent a new valuation.
- Since the inheritance consists "only" of real estate, the value as such will not change
In the context of a valuation method, the value does not change at a specific date over time, as long as the valuation is carried out in accordance with the valuation principles. However, it is possible that a different value may result from a different valuation method. For example, the asset value may differ significantly from the market value.
- What options are there to avoid all this work, including searching for documents?
In principle, you cannot prevent this heir from a new valuation. There are also no reasons apparent from the facts to prevent them from a new valuation. However, there is no apparent obligation for other parties to cooperate based on the information available. You also do not have to provide the documents unless this heir has a right to obtain them.
I hope I was able to help you gain an overview.
If there are still uncertainties, please feel free to use the follow-up function.
Sincerely,
Dr. Yanqiong Bolik
Tax consultant
Bildstöckle 6, 70567 Stuttgart
Tel: +49 (0)711 / 2132 1815
Email: info@zdbz.de
www.steuerberatung.zdbz.de
