Can inheritance tax be paid in installments?
April 8, 2022 | 50,00 EUR | answered by Ella König
Dear Sir or Madam,
I am reaching out to you as I recently inherited an estate and now need to deal with the issue of inheritance tax. Unfortunately, my grandfather has passed away and left me a house as well as some valuables.
I have now learned that inheritance tax is due on this inheritance. Since I do not have sufficient liquid funds to pay the tax all at once, I am wondering if it is possible to pay the inheritance tax in installments.
I am concerned that the high tax burden could put me in financial difficulties and I am looking for solutions to make the payment of the inheritance tax easier.
Therefore, my question to you is: Is it possible to pay the inheritance tax in installments and what are the requirements for this? Are there any other options to stretch or ease the tax payment? I would be very grateful for your support and advice on this matter.
Sincerely,
Laura Reuter
Dear Mrs. Reuter,
Thank you for your inquiry regarding inheritance tax and your concern about the financial burden that comes with it. I understand that you may feel uncertain in this situation and are looking for ways to ease the payment of inheritance tax.
In general, it is possible to pay inheritance tax in installments. This is called deferral of inheritance tax. The tax payment is postponed to a later date and is paid in monthly or annual installments. However, certain requirements must be met for a deferral of inheritance tax to be approved.
The requirements usually include a financial emergency that makes it impossible to pay the tax in a lump sum. Your financial situation will be carefully examined, and you may need to provide documents such as income statements and asset statements. It is important that you can demonstrate that you cannot afford to pay the tax without facing financial difficulties.
There is also the option to apply for a deferral of inheritance tax if the majority of the inheritance consists of real estate assets. In this case, the tax burden can be limited to the real estate assets, and the rest of the tax can be paid in installments.
Another option is to apply for a payment facilitation. You can submit a request to ease the tax payment due to special circumstances. This may be the case, for example, if the inheritance consists only of a house and you do not have sufficient liquid funds to pay the tax.
I recommend contacting a tax advisor or a specialized attorney in inheritance law to discuss your individual situation and find the best solutions for paying the inheritance tax. They will provide comprehensive advice and support you in the application process.
I hope this information is helpful to you and I am available for any further questions. Good luck in handling this matter and all the best for the future.
Sincerely,
Ella König
