Which tax class applies to siblings in inheritance tax?
August 4, 2023 | 50,00 EUR | answered by Alwin Widmann
Dear tax advisor,
My name is Nina Krause and I am facing a complex situation regarding inheritance tax. My parents recently passed away and have left me and my siblings an inheritance. We are three siblings in total and would like to know which tax class applies to us for inheritance tax.
Currently, we are in the situation where we would like to divide the inheritance, but we are not sure about the exact amount of tax each of us will have to pay. We have gathered some information already, but are unsure about which tax class applies to us as siblings.
Our concern is that we may have to pay unexpectedly high taxes and could potentially lose a large part of the inheritance. Therefore, it would be very important for us to know which tax class applies to us as siblings and if there are possibly ways to minimize the tax burden.
Could you please inform us specifically about which tax class applies to siblings for inheritance tax and what steps we can take to reduce the tax burden? We would be grateful for any helpful information and support.
Thank you in advance.
Sincerely,
Nina Krause
Dear Mrs. Krause,
I would like to offer you my sincere condolences on the loss of your parents. It is understandable that you are in a difficult situation and have uncertainties regarding inheritance tax. I am happy to assist you with my knowledge and experience as a tax advisor to answer your questions.
As siblings, you are typically classified in tax class II for inheritance tax. This tax class has a tax-free allowance of 20,000 euros, which applies to each sibling. In addition, there is a tax rate of 15% for inheritance up to 75,000 euros, 20% for amounts between 75,000 euros and 300,000 euros, and 25% for amounts over 300,000 euros.
In your case, where you and your siblings inherit jointly, the value of the inheritance will be divided first, and then the tax-free allowance of 20,000 euros for each sibling will be deducted. The remaining amount will then be taxed according to the above-mentioned tax rates. It is important to note that these are general regulations and individual circumstances must be taken into account.
To minimize the tax burden, there are various options. One option could be, for example, an anticipated inheritance, where parts of the inheritance are transferred during the lifetime. This way, tax-free allowances can be used multiple times and the tax burden reduced. Another option could be the use of tax-free allowances and tax benefits provided for in German inheritance tax law.
It is advisable to seek individual advice in your specific case to find the best solutions for your situation. I am happy to provide you with detailed advice and support you in minimizing the tax burden as much as possible.
I hope this information was helpful to you. Please do not hesitate to contact me if you have any further questions or would like further advice.
Kind regards,
Alwin Widmann
