Attention heirs: This is how you can really reduce inheritance tax!

Attention heirs: This is how you can really reduce inheritance tax!

Heirs are often faced with many questions, especially when it comes to reporting an inheritance. In Germany, heirs are obliged to inform the tax office about inheritances and legacies they have received. This report must be made within three months of becoming aware of the transfer of assets. How Uckermark courier reported, information is required even if there is no inheritance tax. This includes information such as the name, address and profession of the testator as well as the type and value of the inherited assets.

Good preparation is important. Heirs should gather the following information: the date and place of death, the degree of relationship to the testator and details about the inherited assets. The reporting obligation even extends to inheritances for which there is no tax liability. Nevertheless, it can be pleasant to know that the tax office can refrain from reporting in clear cases if no tax liability is expected.

Allowances and tax liability

Heirs should also know the allowances that apply in Germany. There is an allowance of up to 500,000 euros for spouses and registered life partners, while children from each parental home can inherit up to 400,000 euros tax-free. For grandchildren, the allowance is 200,000 euros. For siblings, nieces, nephews and partners, only 20,000 euros are tax-free, as is the case n-tv notes.

These allowances can sometimes be supplemented by additional regulations. A special pension allowance that applies to certain heirs, as well as tax exemptions for the family home and household goods, offer further relief. For example, owner-occupied family homes remain tax-free if the surviving partner lives there for at least ten years.

Consequences of non-reporting

If an heir misses the reporting deadline, it can become more expensive. In addition to fines, there are also criminal consequences for tax evasion. The tax office receives information about deaths and estate transactions from registry offices and probate courts, which means that there is a high probability that they will respond even without an active report. This shows how important it is to meet your own obligations and take action in a timely manner to avoid unwanted surprises.

In summary, it is crucial for heirs in Germany to observe the legal requirements for reporting an inheritance and to find out about allowances. A certain amount of planning can not only save time, but can also be financially beneficial. Those interested can find more information about debts and allowances at Financial tip.