Which tax class applies to inheritance tax?
May 7, 2022 | 50,00 EUR | answered by Wilhelm Ackermann
Dear tax consultant,
I recently inherited from my deceased aunt and now I am wondering in which tax bracket the inheritance tax applies to me. My aunt leaves me a house and some valuable items, the exact value of which I am unsure of. I am unsure if as a niece I fall into a higher tax bracket and therefore must pay a high inheritance tax.
My biggest concern is that I may not have enough money to bear the tax burden, as I already have other financial obligations to contend with. I do not want to fall into financial difficulties and am therefore seeking ways to minimize the inheritance tax as much as possible.
Can you please explain to me in which tax bracket I fall as a niece and how much the inheritance tax would be in my case? Are there ways to reduce the tax burden or potentially avoid it altogether? I am grateful for any assistance and advice.
Thank you in advance for your help.
Sincerely,
Ella Büchner
Dear Mrs. Büchner,
Thank you for your inquiry regarding inheritance tax that you, as the niece of your deceased aunt, have to pay. As a tax advisor specializing in inheritance tax, I am here to assist you by answering your questions as thoroughly as possible and helping you with your financial concerns.
First and foremost, I would like to inform you that inheritance tax in Germany is divided into different tax classes based on the relationship between the deceased and the heir. As the niece of your aunt, you belong to tax class II. In this tax class, higher tax exemptions apply compared to other classes, meaning that you can receive a larger portion of the inheritance tax-free. The exact exemption amount depends on your relationship to the deceased individual.
To calculate the amount of inheritance tax, you will need to have the value of the inheritance, including the house and valuable items, assessed. The tax will then be calculated on the value of the inheritance minus the exemption amount. It is advisable to consult a real estate expert and an appraiser for the valuation of valuable items to obtain an accurate assessment and avoid any disputes with the tax authorities.
If you are concerned that the inheritance tax may be too high and you are having difficulty paying it, there are various ways to reduce the tax burden. One option is to make gifts during your lifetime to utilize the tax-free exemption amount and reduce the inheritance tax. Another option is to take advantage of tax exemptions and benefits to lower the tax burden.
It is important to consult with an experienced tax advisor or estate lawyer early on to discuss your individual situation and take appropriate measures if necessary. I am available for a detailed consultation and to assist you in optimizing your tax situation.
I hope that this information has been helpful to you and I am available for any further questions you may have.
Best regards,
Wilhelm Ackermann
Tax Advisor
