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Deducting funeral costs from taxes: When it is legally possible

2024-02-21T04:15:49.606Z

Highlights: Deducting funeral costs from taxes: When it is legally possible. You cannot claim unlimited costs for tax purposes. It must be an “appropriate amount” that you can declare to the tax office. This has been 7,500 euros since 2003. If there is death benefit insurance, the funeral costs are also reduced. If spouses want to protect each other financially, they can draw up a joint will, the so-called Berlin Will. In doing so, they initially appoint each other as the sole heir.



As of: February 21, 2024, 5:02 a.m

By: Carina Blumenroth

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When a loved one dies, it is difficult for those left behind to cope.

Losses come with costs.

Some can be deducted from your taxes.

These are tasks that are probably not easy for any relative: planning the funeral of a loved one.

What type of funeral did the deceased want and what costs are associated with it?

In some cases there is no exact idea of ​​how everything can be implemented.

Sometimes the financial burden behind it can cause sleepless nights.

Under what conditions can you deduct funeral costs from your taxes?

Deduct funeral costs from tax

You may be able to claim funeral expenses as a tax deduction.

© Verano/Imago

If a close relative dies, under certain conditions the costs can be stated as an extraordinary burden in the tax return, informs the portal

lohnsteuer-kompakt.de

.

This is the case, for example, if you have to cover the costs for legal reasons.

However, this also applies if you have borne the funeral costs for moral reasons and the costs cannot be borne by the deceased's estate.

Can I claim the costs if the estate is higher than the funeral costs?

No, if the discount is higher, no deduction is possible.

If there is death benefit insurance, the funeral costs are also reduced, informs

lohnsteuer-kompakt.de

.

If spouses want to protect each other financially, they can draw up a joint will, the so-called Berlin Will.

In doing so, they initially appoint each other as the sole heir.

What actually belongs to the funeral costs?

  • Costs of death: funeral home, medical costs, death certificate, death certificate, repatriation, obituary, coffin, urn, inquest, burial

  • Costs for the gravesite: grave, use, preparation, gravestone, inscription, grave design, initial planting, grave maintenance

  • Costs for the funeral service: fees for the funeral hall/church, floral decorations, wreaths, priest/chandelier, eulogist, pallbearers, travel costs

  • Possible financing of the funeral (loan interest), arrears of the deceased, cleaning of the apartment

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When does an obligation arise for legal reasons?

If you are appointed heir, you are legally obliged to cover the costs of the funeral.

If you inherit more in total than the funeral costs, you cannot claim the costs as tax deductions.

Attention: In addition to cash assets, the estate also includes possible real estate, informs the

Income Tax Assistance Association.

What is a moral obligation?

A relative who does not inherit anything is legally not obliged to cover the funeral costs.

A moral obligation can arise if other relatives expect the costs to be covered.

The

Income Tax Assistance Association

reports that in such cases it is generally possible to demand reimbursement of costs from heirs, but this is often not possible.

If you declare a takeover for moral reasons to your taxes, the tax office will examine the individual case.

Is there a cap on funeral costs?

You cannot claim unlimited costs for tax purposes.

It must be an “appropriate amount” that you can declare to the tax office.

This has been 7,500 euros since 2003.

Source: merkur

All life articles on 2024-02-21

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