Is there a way to pay inheritance tax in installments?
August 1, 2023 | 40,00 EUR | answered by Alwin Widmann
Dear Tax Consultancy,
My name is Sebastian Schaaf and I am facing a difficult situation regarding inheritance tax. My father recently passed away and has left me a substantial inheritance. As the sole heir, I have received a large sum and now need to pay a considerable amount of inheritance tax.
However, I am currently in a financially difficult situation as I do not have sufficient liquid assets to pay the inheritance tax in one go. Therefore, I am wondering if there is a possibility to pay the inheritance tax in installments to minimize my financial burden.
This question is causing me great concern as I fear that the high inheritance tax may put me in financial difficulties and I may have to sell my inheritance to pay the tax. It would be of great importance to me if you could provide me with possible solutions on how I can pay the inheritance tax in installments to stabilize my financial situation.
I thank you in advance for your support and look forward to hearing from you.
Sincerely,
Sebastian Schaaf
Dear Mr. Schaaf,
first and foremost, I would like to offer my sincere condolences on the loss of your father. It is understandable that you are also faced with financial questions during this difficult time. Inheritance tax can be a significant burden, especially with larger estates, so it is important for you to address this issue.
Regarding the option to pay the inheritance tax in installments, I can inform you that in principle, a deferral or installment payment of the inheritance tax is possible. To do so, you must submit a corresponding application to your local tax office and present your financial situation. The tax office will then assess whether a deferral or installment payment can be approved.
It is important that you submit the application for deferral or installment payment early, preferably before the inheritance tax becomes due. This way, you can avoid falling into arrears and potentially facing additional costs or sanctions from the tax office.
It may also be beneficial to seek advice from an experienced tax advisor to maximize your chances of obtaining a deferral or installment payment. A tax advisor can assist you with the application process and ensure that all relevant information and documents are correctly submitted.
Furthermore, you can consider selling parts of your inheritance to pay the inheritance tax. This may help reduce the financial burden and improve your liquidity. Again, a tax advisor can assist you in considering tax implications and analyzing potential impacts on your financial situation.
Overall, it is important for you to take proactive steps and seek professional support to stabilize your financial situation and pay the inheritance tax in installments. I hope this information is helpful to you and I am available to answer any further questions you may have.
Kind regards,
Alwin Widmann
Tax Advisor
