How is inheritance tax calculated in blended families?
June 21, 2023 | 50,00 EUR | answered by Wilhelm Ackermann
Dear Tax Advisor,
I am facing a complex situation regarding inheritance tax and am hoping for your expertise to provide clarity. My current situation is as follows: My father has passed away and has two other children from a previous marriage in addition to me. He also has a stepdaughter from my stepmother's second marriage. My stepmother has also passed away and has left behind a substantial estate. Now the question arises for us how inheritance tax is calculated in this patchwork family structure.
My concerns and uncertainties lie in the fact that I am not sure how the different family relationships and inheritance claims of the various children are taken into account. What tax-free allowance do the individual children have? Should the stepdaughter and I as step-siblings also be considered? Are there any special regulations for patchwork families regarding inheritance tax?
Furthermore, I am wondering if there are ways to minimize the tax burden or make certain arrangements to achieve a fairer distribution of the inheritance. What tax optimization options are available to us in this case?
I hope you can assist me with these questions and provide clarity on how inheritance tax is calculated in patchwork families and what steps we can take to optimize the tax burden.
Thank you in advance for your support.
Sincerely,
Felix Fuchs
Dear Mr. Fuchs,
Thank you for your trust and your inquiry regarding inheritance tax in your complex patchwork family structure. I understand that in such situations there can be many uncertainties and concerns, so I will try to answer you as comprehensively as possible.
First of all, I would like to inform you that inheritance tax in Germany is calculated based on the relationship between the deceased and the heirs. There are different tax classes and exemptions, which vary depending on the relationship. In your case, the relationships play a crucial role in the calculation of inheritance tax.
As biological children of your father, you and your siblings each have an exemption of 400,000 euros. This means that no inheritance tax is due up to this amount. For your stepmother's stepdaughter, there is an exemption of 100,000 euros. It is important to note that stepchildren and step-siblings do not have the same exemption as biological children in inheritance tax.
In patchwork families, there can be complicated situations due to the varying exemptions and tax classes based on the relationships. It is important to consider these factors in order to achieve a fair distribution of the inheritance and optimize the tax burden.
To minimize the tax burden and make tax optimizations, there are various options. One of them is using exemptions and tax classes to distribute the inheritance in a tax-optimized way. Lifetime gifts can also be an option to reduce inheritance tax. However, it is important to adhere to certain deadlines and regulations in order to obtain tax benefits.
In your case, it is recommended to consult a tax advisor who is familiar with inheritance tax and patchwork families in order to receive individual advice and optimization options for your specific situation. I am happy to assist you with further questions and detailed advice.
I hope that this information has been helpful and has provided you with clarity. Please do not hesitate to contact me with any further questions.
Best regards,
Wilhelm Ackermann
