Inheritance planning made easy: How to save taxes on gifts!

Inheritance planning made easy: How to save taxes on gifts!

Comprehensive regulation of inheritance is an important but often unresolved issue for most people in Germany. Assets worth 200 to 400 billion euros are transferred every year, but only 32% of heirs have discussed the topic openly. This is shown by an Allensbach study from 2024, which is referenced in a current eBook that answers 143 common questions about inheritance and donations. According to the authors Alexander Bars, an inheritance law specialist, and Andreas Kitta, an asset manager, the eBook offers valuable information on estate planning and tax structuring.

Many people do not have a will. Only one in three people made such a decision. Complex rules, emotional stress and uncertainty about the best course of action are common reasons for the lack of regulation. The eBook provides help, particularly through its structured approach, which addresses various life situations, such as wills, compulsory portions, transfer of real estate and company shares.

Inheritance tax and allowances

An important issue in the context of inheritances is inheritance tax, which can entail significant burdens, especially for larger assets or real estate. The eBook contains chapters that specifically deal with inheritance tax and tax optimization. Among other things, allowances are listed: For children this is 400,000 euros and for spouses it is 500,000 euros. Real estate can be transferred tax-free through usufruct rights or residential rights, which can reduce the financial burden on heirs.

An interesting strategy for reducing inheritance tax is lifetime gifts. These make it possible to transfer assets during your lifetime and thus minimize the inheritance tax burden. Donations are generally not counted against the inheritance if they are made more than 10 years before the death of the donor. This means that early gifts can be a great advantage when inheriting.

Legal basis and planning

The legal basis for donations is set out in the German Civil Code (BGB). Gifts are transfers of assets during one's lifetime without consideration. The defined allowances are particularly important: 400,000 euros tax-free from parents to children, 200,000 euros from grandparents to grandchildren and 20,000 euros for friends or third parties. For gifts made within 10 years of the donor's death, the value of the estate increases, which can have tax implications. It is therefore advisable to plan carefully and consult a tax advisor.

It is particularly worth mentioning that lifetime gifts not only offer tax advantages, but can also improve the financial well-being of the recipient. At the same time, however, they can lead to conflicts among heirs if not everyone is treated equally. In order to create legal clarity, notarial contracts are recommended. In addition, donations to charitable organizations can often be tax-exempt.

For successful estate planning, a precise asset analysis, determining the distribution of assets and drawing up legal documents are essential. The regular review of the regulations and the financial situation should also not be neglected. A free eBook, which is available from V-Bank AG's V-CHECK newsletter, offers a lot of valuable information and assistance.

Overall, early and well-thought-out estate planning is crucial for a fair distribution of assets and to avoid unnecessary tax burdens. Anyone who deals with these topics in detail can not only achieve financial benefits, but also avoid family conflicts.