"It is often assumed that making a gift before the occurrence of the inheritance case automatically doubles the personal tax-free allowances. In fact, this only applies if more than 10 years have passed between the gift and the inheritance case." This answer on the subject of inheritance and gift tax, along with many more, is given by Anke Büker, Steuerberaterin (German Certified Tax Advisor) and partner in our group of companies, in the article of the same name in the newspaper "Gewusst wie" in August 2008. Knowing how on this topic means one thing above all: put your arrangements in place in good time and with professional assistance. Anything else will, as a rule, prove far more expensive than you can imagine today. As a brief introduction, you can read the article below. For any questions, please feel free to contact us at any time. [wpfilebase tag=file id=21 /]
Frequently asked questions
Frequently asked questions
Do allowances automatically double if a gift is made before inheritance?
No, the personal allowances for inheritance and gift tax do not automatically double through an advance gift. Using the allowances twice is only possible if more than 10 years lie between the gift and the subsequent inheritance. If the period is shorter, earlier gifts are aggregated with the inheritance.
What is the 10-year period for gift tax purposes?
Within a 10-year period, multiple gifts between the same persons are aggregated for the calculation of gift and inheritance tax. The personal tax-free allowance is available only once per 10-year period. Only after this period has expired does the allowance reset and become available for a second time.
Why should succession planning be carried out early?
Timely structuring of asset succession allows tax-free allowances to be used multiple times and tax advantages to be leveraged in a targeted manner. Those who plan too late lose, in particular, the opportunity to exploit the 10-year period for the renewed use of allowances. Subsequent corrections are usually significantly more expensive than forward-looking advice.
When is professional advice on gifts and inheritances advisable?
Professional advice is advisable as early as the planning stage of asset transfers, well before the inheritance occurs. A Steuerberater (German Certified Tax Advisor) can optimally coordinate gifting strategies, the use of tax-free allowances, and the choice of tax class. Without professional guidance, you risk avoidable tax burdens that typically far exceed the cost of proper structuring.