Ask a tax advisor on the topic of Inheritance tax

Basics for calculating inheritance tax

April 14, 2011 | 25,00 EUR | answered by Michael Herrmann

Dear Sir or Madam,

I have been appointed as the heir by my cousin - she has stated an inheritance amount of 100,000 euros in her will. However, the property only has a market value of approximately 35,000 euros. Are the 100,000 euros the basis for inheritance tax?

Thank you for your response.

Michael Herrmann

Dear inquirer,

First and foremost, thank you for your inquiry, which I would be happy to answer based on the information provided and considering your involvement in an initial consultation. The response is based on the facts presented. Missing or incorrect information about the actual circumstances can affect the legal outcome.

The taxable acquisition is assessed under inheritance tax law according to § 12 of the Inheritance Tax Act (ErbStG). This provision refers to the guidelines of the Valuation Act. Mobile assets, cash assets, and securities are usually valued at market value. Different approaches apply to real estate, natural resources, business assets, and shares in corporations.

Assets that are to be valued differently from pure market value are also subject to evaluation, which ultimately should be close to market value. Market value is therefore generally the benchmark. Unfortunately, you have not specified the inheritance further, so a more detailed assessment is not possible. The valuation made by the deceased is not relevant in any case.

You should seek advice on determining the value of the taxable acquisition, as there may still be applicable exemptions and valuation discounts.

I hope that these details have provided you with a sufficient overview of the situation within the scope of your involvement and this initial consultation.

Kind regards,

Michael Herrmann
Diploma in Financial Management
Tax Advisor