How can I plan my estate in a tax-optimized way?
January 11, 2023 | 40,00 EUR | answered by Otto Dornbusch
Dear tax advisor,
my name is Emma Bittner and I am facing the challenge of tax-optimized estate planning. I am single, own a home as well as securities, and want to ensure that my heirs have to pay as little inheritance tax as possible. Currently, I do not have specific ideas on how to best approach this.
I am concerned that my heirs will have to pay high taxes in the event of my death and therefore want to take early measures to avoid this. I am aware that inheritance tax can vary depending on the size of the inheritance and the relationship to the heirs, and therefore want to ensure that my heirs have to pay as little tax as possible.
What options are there to plan my estate in a tax-optimized way? Are there specific gift forms or tax exemptions that I should consider? How can I best structure my assets to minimize inheritance tax?
I look forward to your professional advice and thank you in advance for your help in tax-optimized estate planning.
Sincerely,
Emma Bittner
Dear Mrs. Bittner,
Thank you for your inquiry regarding the tax-optimized planning of your estate. I understand that it is important to you to protect your heirs from high inheritance taxes and to take early measures to ensure this. I am happy to give you an overview of possible options to plan your estate in a tax-optimized way.
First of all, it is important to know that in Germany, inheritances and gifts are generally subject to inheritance or gift tax. The amount of tax depends on the value of the inheritance or gift and the relationship between the deceased and the heirs. However, there are various ways to reduce the tax burden.
One way to reduce inheritance tax is the early transfer of assets during one's lifetime, through gifts. In this case, you can benefit from tax exemptions that can be used again every 10 years. Currently, the exemption amount is 400,000 euros per child and 500,000 euros for spouses. Through strategic gifts, you can transfer assets to your heirs in a tax-optimized way during your lifetime.
Another possibility is to take advantage of tax exemptions and benefits. For example, business assets or owner-occupied residential properties may be favored and subject to lower tax rates. Setting up a will or inheritance contract can also help reduce the tax burden.
Furthermore, early consultation with a tax advisor or lawyer may be beneficial to examine individual design options and develop a tailored solution for your situation. There are numerous tax planning options that may be suitable depending on your financial situation and personal preferences.
In any case, I recommend taking proactive steps and discussing your inheritance planning with an expert to best protect your heirs from high tax burdens. I am available for a detailed consultation and to support you in the tax-optimized planning of your estate.
Sincerely,
Otto Dornbusch
