Payment of wages to an inheritance community - reversal of ALT contract
Dear Expert,
I have questions regarding the following situation:
Scenario:
Inheritance community with 3 heirs
At the time of death, the deceased was in the active phase of retirement (ATZ, blocked ATZ model)
The ATZ contract was terminated after the death as a so-called "disruption" and paid out to one of the heirs by the former employer of the deceased with the consent of the inheritance community via a final salary statement. The heir receiving the salary is a pensioner and privately insured. The deceased was an employee subject to social security contributions and legally insured.
The salary statement includes the following items:
1) One-time severance payment ATZ (one-time payment, subject to income tax, not subject to social security contributions): Amount A (gross)
2) Dissolution of working time / value account, multi-year (one-time payment, subject to income tax, not subject to social security contributions): Amount B (gross)
3) Payment in lieu of vacation (one-time payment, subject to income tax, subject to social security contributions): Amount C (gross)
4) Basis for calculation of other income: Amount D (exactly equals: A+C)
5) Legal net salary: Amount E (no social security contributions, health insurance contributions, or long-term care insurance contributions were deducted)
I have the following questions:
1) Is it correct that there were no contributions deducted for pension and statutory health insurance/long-term care insurance in the salary statement?
2) The heir (salary recipient) is obligated to pay out 2/3 of the salary to the other heirs.
a. Does this mean that he transfers 1/3 of the total gross amount to each heir and the heirs then report this payment as other income in their income tax return?
b. Can the salary recipient report negative income in his next income tax return in the amount of the inheritance share paid out to the heirs as negative "Other Income"?
3) Will the lump sum taxation be applied when calculating the tax liability for the gross amount A (one-time severance payment ATZ) and the gross amount B (dissolution of working time / value account, multi-year) for the heir and salary recipient?
4) Does the net salary for each heir then again be subject to inheritance tax? Or what is the basis for calculating inheritance tax?
Thank you.
