What are the tax implications of an inheritance?
January 27, 2022 | 50,00 EUR | answered by Georg Nitsche
Dear tax consultant,
my name is Xenia Heck and I am facing an important decision regarding an inheritance. My aunt recently passed away and left me a substantial amount of assets. Now I am concerned about the tax implications of this inheritance and unsure about the best course of action.
In the current situation, my aunt has bequeathed both money and real estate to me in her will. I am not sure how much inheritance tax I will have to pay in my case, and if there are any additional taxes or fees I should expect. I am also unsure whether I should sell or keep the inherited assets and what the tax consequences of each option would be.
Therefore, the current state is characterized by uncertainty and lack of knowledge about the tax aspects of an inheritance, as well as the best course of action in my specific case. I would like to know the specific tax implications of the inheritance for me and what possibilities there are to minimize potential tax burdens.
My concerns mainly revolve around the amount of inheritance tax, possible additional taxes or fees, and the tax consequences of selling or keeping the inherited assets. I want to ensure that I handle the tax situation correctly and avoid any unpleasant surprises.
My specific question to you is: What are the tax implications of my aunt's inheritance for me and how can I minimize potential tax burdens? I look forward to your expert advice and thank you in advance for your help.
Sincerely,
Xenia Heck
Dear Mrs. Heck,
Thank you for your inquiry regarding the tax implications of an inheritance. First and foremost, I would like to express my sincere condolences on the loss of your aunt. It is understandable that you are now concerned about the tax consequences and unsure of how best to proceed.
There are some important points to consider regarding inheritance tax. The amount of inheritance tax depends, among other things, on your relationship to the deceased, the value of the inherited assets, and your own tax rate. In Germany, there are tax-free allowances up to which no inheritance tax is due. These allowances vary depending on the relationship and may apply to the entire inheritance or individual assets.
If there are larger assets, such as real estate, it may be advisable to consider a so-called anticipatory succession. This involves transferring parts of your assets to your heirs during your lifetime to reduce the inheritance tax burden. However, this requires careful planning and advice from a tax advisor.
The question of whether to keep or sell the inherited assets also has tax implications. For example, when selling real estate, speculation taxes may apply if you sell the property within a certain period after the inheritance. It is important to carefully examine the tax regulations and, if necessary, develop a tax-optimized sales strategy.
To minimize potential tax burdens, I recommend seeking early advice from an experienced tax advisor. Together, we can analyze your individual situation, highlight tax optimization opportunities, and help you make the right decisions. It is important to keep all tax aspects in mind to avoid unpleasant surprises.
I am available for a detailed consultation and look forward to assisting you with your tax questions related to your aunt's inheritance.
Sincerely,
Georg Nitsche
