Have you ever thought about what will happen to your property when you are no longer around? Perhaps you are concerned that your heirs might have difficulty paying inheritance tax or even find themselves embroiled in a bitter dispute over it?
There is a way to arrange your real estate inheritance according to your wishes while you are still alive. By passing on your property through a gift, you can not only ensure that it ends up in the hands of the right people, but also avoid unnecessary conflicts between your heirs.
But be careful: a gift also has its own challenges. The question of taxes that may be incurred during the transfer is an important aspect. The amount of these taxes depends on the value of the property and the family relationship. It is crucial to understand this financial burden in advance.
Inheritance taxes in Germany: Overview of important allowances
The following allowances apply in Germany:
- Spouses and registered partners: €500,000
- Children and stepchildren: €400,000
- Grandchildren and great-grandchildren: €200,000
- Parents and grandparents: €100,000
- Siblings: €20,000
- Non-relatives: €20,000
You should also ensure that your interests as the donor are protected. It is advisable to set conditions that ensure that your property remains in good hands and is not sold or used for other purposes against your wishes.
Ensuring your wishes are met
One way to protect yourself is to set out certain conditions and rights in a contract. For example, a right of recovery can be agreed upon, which allows you to get the property back if the recipient gets into financial difficulties and has to sell the property to pay off debts.
In addition, you can specify further conditions to ensure that your wishes are respected and that the property is used in accordance with your ideas. These include rights of residence or usufruct rights, which allow you to continue living in the property or retain certain rights of use. You can also stipulate prohibitions regarding renting, resale, or other uses to ensure that the property is not used contrary to your intentions.
The obligation to care for the donor can also be stipulated in the contract. This agreement can not only serve to ensure that you are adequately cared for in old age, but also to prevent a possible revocation of the gift by government agencies in the event of a need for care.
As real estate experts, we can offer you valuable insights and experience in the field of real estate inheritance and help you with all questions relating to real estate.
