Do I also have to pay inheritance tax if I inherit only a small amount?
April 17, 2024 | 40,00 EUR | answered by Ella König
Dear tax consultant,
My name is Ben Breitwieser and I have a question regarding inheritance tax. My grandfather recently passed away and left me a small amount of money in his will. Since I am not particularly knowledgeable about finances, I am concerned about whether I will have to pay inheritance tax on this inheritance.
The situation is as follows: My grandfather left me a sum of 10,000 euros. While this may not be a large amount of money for some people, it is a significant sum for me. I am unsure if I will have to pay inheritance tax on this amount and how high this tax could be. As a student with limited financial resources, I am worried that the inheritance tax could consume a large portion of the inheritance.
My main concern is therefore to find out if I, as the recipient of a relatively small amount, will also have to pay inheritance tax and how high this tax could be. Are there possible solutions or exceptions that could help me minimize or avoid the inheritance tax?
I would greatly appreciate it if you could assist me in this matter. I look forward to your response and thank you in advance for your support.
Sincerely,
Ben Breitwieser
Dear Ben Breitwieser,
Thank you for your inquiry regarding inheritance tax. It is understandable that you are concerned about whether you will have to pay inheritance tax on the money inherited from your grandfather. I am happy to help you clarify these questions.
In Germany, inheritance tax is levied on assets that pass from a deceased person to an heir. There are tax-free allowances up to which no inheritance tax is due. The tax-free allowance depends on your relationship to the deceased. For grandchildren, the tax-free allowance is currently 20,000 euros. This means that you would not have to pay inheritance tax on the amount of 10,000 euros inherited from your grandfather, as it is below the tax-free allowance.
In your case, it would not be necessary to pay inheritance tax. It is important to mention that inheritance tax in Germany is progressive, meaning that the higher the value of the inheritance, the higher the tax rate. However, since your inheritance is below the tax-free allowance, you are fortunate and do not have to pay taxes.
Nevertheless, it is advisable to declare the inheritance to the relevant tax office to ensure that all formal requirements are met. This can help avoid any potential problems or uncertainties in advance.
If you should inherit larger assets in the future that exceed the tax-free allowance, there are various ways to minimize inheritance tax. These include tax allowances, such as for the family home or business assets. Lifetime gifts can also be an option to reduce the tax burden.
I hope this information has been helpful and has clarified your concerns regarding inheritance tax. If you have any further questions or need assistance, I am happy to help.
Best regards,
Ella König
