Gift and inheritance receivers are divided into two tax brackets, according to which the tax is calculated. The tax burden is heavier on the most distant relatives.
Under tax bracket 1, tax is paid by the decedent’s wife, husband or registered partner, an inheritor in direct line of descent or ascent (child, grandchild, parent or grandparent), an inheritor to the decedent’s spouse or former spouse in direct line of descent and an engaged partner of the deceased who is entitled to support under the Code of Inheritance.
A spouse is also considered to be a person who is living in a marriage-like situation with the deceased, who has been married to the deceased at some time or who has or has had a common child with the deceased. Adopted children and parents are treated as biological relatives for tax purposes.
All other relatives and individuals outside the family pay tax under tax bracket 2.
With more than twenty years of experience, we offer our clients a personalised and client-oriented service in various areas of family property law. Whether your matter falls under family law or inheritance law, we always handle it efficiently, without forgetting the human aspect.
The area of family law usually includes financial matters relating to marriage and cohabitation, as well as child custody, living arrangements, right of access and maintenance.
Before proceeding with the distribution of the estate, a deed of estate inventory, which is a list of the deceased’s assets and liabilities, must first be drawn up and the estate must be settled. Only then can an agreement on the distribution of the estate be concluded.
Inheritance tax planning emphasises the importance of properly prepared documents in good time. A continuing power of attorney is a document that allows you to take care of your own affairs over your lifetime well in advance. You can plan for the distribution of your assets and their tax treatment by having a comprehensive deed of gift and/or testament in place.