Inheritance tax notice received

Service Description

Inheritance tax covers assets acquired upon death. The taxation of your increased ability to pay thereby is intended to contribute to a fairer distribution of assets. Inheritance tax does not apply to the estate as such, but to the inheritance of the individual acquirer.

The subject of taxation is the acquisition upon death. Acquisition on account of death is deemed to be

  • acquisition by inheritance, by bequest or on the basis of an asserted claim to a compulsory portion
  • acquisition by gift on death
  • other acquisitions to which the provisions of civil law applicable to legacies apply
  • acquisition on the basis of a contract concluded by the testator and directly acquired by a third party at the death of the testator (e.g. life insurance contract).

The tax base is the taxable acquisition. The taxable acquisition is the enrichment of the acquirer, unless it is tax-exempt. The valuation of the transferred assets is carried out in accordance with the Valuation Act.

Of particular importance is the valuation of real property. Real property values are determined, if necessary, in a separate procedure by the situation tax offices. The basis is the fair market value of the land. Various valuation methods existed to determine the fair market value.

Deductible liabilities include all debts that have passed from the decedent to the heirs. In addition, legacies, stipulations and compulsory portion claims can be deducted. Funeral expenses, grave care costs and estate settlement costs triggered by the inheritance are also deductible. To compensate for the latter costs, you can take into account a lump sum of 10,300 euros without providing evidence.

In addition, the tax class is decisive for the amount of tax. This is because the tax class affects the amount of your personal tax rate and tax-free amount. Basically, the closer you are related to the decedent, the more gently the inheritance tax will apply.

The amount of tax further depends on whether factual tax exemptions are to be taken into account. Of particular importance from the exemption catalog are the allowance for household effects of 41,000 euros for acquirers in tax class I, the allowance for other movable tangible property of 12,000 euros for acquirers in tax class I, and the allowance of 12,000 euros for household effects and other property together for acquirers in tax classes II and III. The acquisition of a family home is also tax-free in many cases.

The Inheritance Tax Act also provides for various exemption options for the acquisition of eligible business assets and shareholdings as well as agricultural and forestry assets.

Source: Zuständigkeitsfinder Thüringen (Linie6PLus)

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