What is the tax-free allowance for inheritance tax?
June 22, 2024 | 40,00 EUR | answered by Alwin Widmann
Dear tax advisor,
my name is Karl Voss and I am faced with the challenge of settling my late father's inheritance. Currently, I am unsure about the exact regulations and tax exemptions for inheritance tax. My father has left me a fortune that I now need to manage and tax.
My father owned a house, some valuable items, and money in various accounts. I am his only rightful heir and I want to ensure that I handle everything correctly and legally. Therefore, it is important for me to know what the tax exemption for inheritance tax is.
My concern is that I may have to pay taxes that I have not accounted for or that I may make mistakes in the process. That is why I am reaching out to you to get clarity and learn possible solutions for my situation.
Could you please explain to me in detail what the tax exemption for inheritance tax is and what steps I need to take to settle everything properly? I thank you in advance for your help and expertise.
Sincerely,
Karl Voss
Dear Mr. Voss,
Thank you for your inquiry regarding inheritance tax and the regulations surrounding the administration of the assets left to you by your deceased father. It is understandable that you may feel uncertain and want to ensure that you handle everything correctly and legally. I am happy to assist you and will explain in detail what the inheritance tax exemption amount is and what steps you need to take to properly handle everything.
The inheritance tax exemption amount depends on your relationship to the deceased. As a direct descendant, such as a son, you have an exemption amount of 400,000 euros. This means that you can inherit up to this amount tax-free. Anything above that amount is subject to inheritance tax. The tax rates are staggered and can vary depending on the amount of inherited assets. It is important to know that there are also specific exemptions for other relationships, such as spouses or siblings.
To correctly calculate and pay the inheritance tax, you must submit an inheritance tax declaration to the relevant tax office. In this declaration, you list all inherited assets and calculate the tax due on them. It is advisable to seek assistance from an experienced tax advisor to avoid errors and ensure that everything is handled correctly.
Additionally, you may need to take other steps, such as dividing the assets or registering as the new owner of the house. Again, a tax advisor can assist you and guide you through all necessary steps.
It is important that you take care of the inheritance settlement early on and do not wait too long. The sooner you act, the sooner you will have clarity about your financial situation and can plan for any potential tax payments.
I hope that this information has been helpful to you and I am available for any further questions. Please do not hesitate to contact me if you need further assistance.
Best regards,
Alwin Widmann
