What role does the value of the inheritance play in inheritance tax?
July 30, 2024 | 40,00 EUR | answered by Otto Dornbusch
Dear tax advisor,
My name is Leon Schillinger and I am facing a complex situation regarding inheritance tax. My father recently passed away and left me a substantial amount of wealth. Now I am wondering what role the value of the inheritance plays in inheritance tax and what impact this will have on my financial situation.
The current situation is as follows: My father has left me a large house, several pieces of land, and a substantial amount of cash. I am unsure of how the value of these assets will be taken into account when calculating inheritance tax and what tax rates I may be facing. As I have little experience with tax matters, I am concerned that I may have a high tax debt to pay and could potentially face financial difficulties as a result.
My question to you as an expert is therefore: What role does the value of the inheritance play in inheritance tax and how can I best prepare for the tax payments? Are there ways to minimize the tax burden or utilize tax exemptions to reduce my financial burden? I would greatly appreciate your expert advice and support on this matter.
Thank you in advance.
Sincerely,
Leon Schillinger
Dear Mr. Schillinger,
first of all, my sincere condolences on the loss of your father. It is understandable that you are in a difficult and complex situation regarding inheritance tax. I would be happy to provide you with a detailed answer to your question and try to assist you in clarifying your tax matters.
The value of the inheritance plays a crucial role in the calculation of inheritance tax. This includes all assets that you have inherited from your father, such as real estate like the house and land, as well as cash assets. The value of these assets is determined at the time of inheritance and forms the basis for the calculation of inheritance tax.
The inheritance tax itself depends on the value of the inheritance and the relationship between you and the deceased. The higher the value of the inheritance, the higher the tax burden usually is. However, there are certain tax-free allowances that apply depending on your relationship to the deceased. These tax-free allowances can help reduce the tax burden or even avoid it altogether if the value of the inheritance is below the allowance.
To prepare optimally for tax payments and possibly utilize tax-free allowances, it is advisable to contact a tax advisor early on. An expert can help you accurately determine the value of the inheritance, check tax-free allowances, and develop possible tax optimization strategies. Through early and professional advice, you may be able to minimize the tax burden and avoid financial difficulties.
I recommend scheduling a consultation with an experienced tax advisor to clarify your tax matters related to inheritance tax. Individual advice will help you understand and optimize your financial situation.
I hope that my response was helpful to you and I am available for any further questions.
Best regards,
Otto Dornbusch
