The regulations and obligations relating to inheritances in Germany are a constant source of debate, both in politics and among heirs.
Frankfurt – It is not uncommon for disputes to arise between several heirs, which must be settled by the statutory provisions.
In addition, there are still some myths surrounding inheritances and wills - for example, whether a last will is only valid in handwritten form.
And that's not all: since January 2023 there have been extensive changes in inheritance law, which means that heirs will have to pay significantly higher taxes.
Politicians are talking about a major wave of costs, and by the end of 2022 there will already be discussions about how and whether it can be averted.
The culprit is a revised procedure that is intended to adjust inherited properties to their real market value.
Inheritance Tax: Real estate and bank accounts count as inheritance
In almost every estate, however, there is at least one account with a bank.
Depending on how complex the inheritance is, it is not always immediately clear who is entitled to the assets, explains the Frankfurt law firm for inheritance and tax law Rose & Partner.
Who is the lawful heir or heiress is either based on the legal succession or is based on the will of the deceased person, also called “testator” or “testator” in legal vocabulary.
If there are several heirs, one speaks of a community of heirs, who can only dispose of the accounts of the deceased person jointly and unanimously.
Individual heirs are therefore not entitled to have their share of the bank balance paid out to them.
So this is where it gets complicated.
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Inheritance: With what account balance is the compulsory portion calculated?
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© Britta Pedersen/dpa
Inheritance: With what account balance is the compulsory portion calculated?
The situation becomes even more complex if another person entitled to inherit is added who was not granted an heir in the will.
If the latter demands their statutory compulsory portion of the inheritance, the heirs are obliged to create an inheritance list of all the assets of the deceased.
At this point at the latest, the question often arises: Which account balance counts towards the inheritance?
It may take some time before the compulsory portion of the inheritance is claimed.
According to the inheritance law office, a statute of limitations only begins three years after the person entitled to a compulsory portion became aware of the death of the deceased and the present disinheritance.
Inheritance: What account balance in the bank counts as part of the inheritance?
In most cases, however, the question can be answered comparatively easily: According to the law firm, the account balance on the day of death of the deceased is decisive both for the calculation of a compulsory portion and for inheritance tax.
In the case of a community of heirs, on the other hand, things look a little different: In the event of an inheritance dispute, the account balance at the time of the dispute is used as the basis for calculation.
All forms of bank deposits are subject to inheritance tax - but only the part that exceeds the personal allowances of the heirs, explained the law firm Rose & Partner.
These are currently 500,000 euros for married couples and 400,000 euros for children of the deceased.
But in view of the impending cost explosion for the inheritance of real estate, Federal Finance Minister Christian Lindner (FDP) is calling for the increase.
"I think it's time to increase the exemption limits for inheritance and gift tax," Lindner told
FR.de
from
IPPEN.MEDIA
.
Inheritance: A bank account is part of the inheritance – but wealth tax is low
But not everyone shares this view.
According to official statistics (OECD), the average tax rate on inheritances in 2021 was only 9.4 percent - compared to 48.1 percent in taxes and social security contributions for a single household.
In comparison, Germany has such a low wealth tax "like hardly any other industrialized country," said Julia Jirmann, consultant for tax law and tax policy at the network
Steuerjustigkeit
FR.de.
Rich and very wealthy people could also exploit a plethora of loopholes to avoid paying taxes to the state.
Some wealthy people also see this as a problem: heiress Marlene Engelhorn wants to give up 90 percent of her inheritance.
With her "taxmenow" initiative, she is committed to fair taxation of rich people.
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List of rubrics: © Britta Pedersen/dpa
