Do tangible assets such as jewelry or art objects also need to be taxed?
February 28, 2023 | 40,00 EUR | answered by Wilhelm Ackermann
Dear Sir or Madam,
My name is Rolf Stolzheim and I have a question regarding inheritance tax. My father recently passed away and left me as his heir with cash, jewelry, and art objects. Now I wonder if these assets also have to be taxed.
The situation is as follows: My father left an inheritance in the form of cash, jewelry, and art objects. I am unsure whether these assets will also be taken into account when calculating the inheritance tax or if only the cash is relevant.
The current situation is that I have already gathered some information on inheritance tax, but I am not sure if assets such as jewelry or art objects need to be taxed as well. These concerns are weighing on me, as I would like to have clarity on how high the tax burden will ultimately be and whether I may need to sell the assets to pay the tax.
My question to you as a tax advisor for inheritance tax is therefore: Do assets such as jewelry or art objects also need to be taxed, and if so, how are they considered in the calculation of inheritance tax? Are there ways to reduce or avoid the tax burden when it comes to taxing assets?
Thank you in advance for your support and I look forward to your expert advice.
Sincerely,
Rolf Stolzheim
Dear Mr. Stolzheim,
first and foremost, I would like to offer my sincere condolences on the loss of your father. It is understandable that in this difficult time, you also have concerns about the tax aspects of the inheritance. I would be happy to answer your questions regarding inheritance tax and the taxation of assets such as jewelry and art objects.
In general, both cash and assets such as jewelry and art objects must be taken into account when calculating inheritance tax. Inheritance tax is levied on the value of the entire estate, regardless of whether it consists of cash, real estate, assets, or other assets.
To determine the value of jewelry and art objects, you may consider getting an appraisal from an expert or art specialist. They can determine the current market value of the items, which is important for calculating inheritance tax.
The tax burden depends on the relationship to the deceased and the value of the inherited assets. In Germany, there are tax-free allowances, up to which no inheritance tax is due. These allowances vary depending on the relationship. For example, children have an allowance of 400,000 euros.
If the value of the entire estate exceeds the tax-free allowance, inheritance tax will be levied on the amount above that. The exact amount of tax depends on the value of the estate, the relationship, and the tax rate. Therefore, it is important to determine the exact value of the assets in order to calculate the tax burden correctly.
There are various ways to reduce or avoid the tax burden when it comes to the taxation of assets. One option is to use tax-free allowances and tax breaks provided by law. It may also be advisable to seek tax advice in a timely manner to explore possible tax planning opportunities.
In any case, I recommend you to consult with an experienced inheritance tax advisor to discuss your individual situation and receive tailored advice. This way, you can ensure that you optimize the tax burden and take advantage of potential tax benefits.
I hope this information has been helpful, and I am available to assist with any further questions you may have. Once again, my sincere condolences and best wishes for settling the estate.
Best regards,
Wilhelm Ackermann
