Completing inheritance tax declaration - Question about a situation
November 16, 2010 | 30,00 EUR | answered by Dipl.BW/SB Ulrich Stiller
Dear Sir or Madam,
I am writing to you with a question regarding the inheritance tax declaration. Here is the situation:
My mother inherited a significant sum from a neighbor, to whom she owed a lot. The amount exceeds the tax-free allowance for unrelated persons by a large margin.
After the deceased had passed away, a will was found naming my mother as the sole heir. Additionally, there was a bequest of 5 TEU for a distant relative who is not entitled to a compulsory share. However, the deceased had personally crossed out this bequest.
The relative was informed about the will and requested that the bequest be paid out to her despite being crossed out by her aunt. In order to prevent any escalation, my mother agreed to this request. The notary also advised this, stating that this amount could be deducted from the inheritance. Subsequently, the inheritance certificate was issued to my mother.
Now we are working on the inheritance tax declaration and we are unsure how this situation can be included in the tax declaration. Can you please help us with this?
Yours sincerely,
Dear customer,
Thank you for your inquiry, which I would like to answer based on your information and in the context of your involvement in a first consultation as follows:
You have the tax return form "Inheritance Tax 'Erb 9/09'" in front of you. On page 4, line 42, you will find "Costs of Inheritance". In lines 104 and 105, you will find "Legacies, conditions, compulsory portions". In line 105, you must check "yes" and in line 106, you must provide the name, address, and type of claim (fulfillment of legacy on...date).
This is a liability that reduces your mother's inheritance. However, an impact only occurs if the tax-free amount for inheritance costs of 10,300 EUR is exceeded. Inheritance costs also include the costs of the deceased's funeral, for the grave monument, costs for regular grave maintenance, costs of estate settlement (notary fees), etc. Reimbursements from third parties, such as funeral benefits, should be deducted.
You should definitely enter the 5,000 euros.
I hope I was able to assist you.
Best regards,
Ulrich Stiller
Tax consultant / Dipl. Business economist
