When it's worth giving as a gift

When a property is inherited, the tax authorities ask for cash. It may be more favorable to transfer the house before the inheritance, i.e. to give it as a gift. But not everyone saves the same amount. Therefore owners should know when and how it pays to make a gift.

Germans inherited and received almost 109 billion euros in 2016. received as gifts. Around a third of this was taxable and provided the state with tax revenue of almost 7 billion euros - according to the Federal Statistical Office. According to estimates inherited and gifted assets are expected to rise to 330 billion euros by 2020. by 2020. Almost three quarters of this is real estate.

Hannelore B. is 81 years old. For her, too, the question arises what is to become of her little house. Because living in her own four walls is becoming increasingly difficult for her. Climbing the stairs and keeping the whole house clean is becoming more and more strenuous for her. She thinks about it, moving into an assisted living facility. But what will she with the house then? She always assumed that her son Thomas would inherit the house. son Thomas would inherit the house. But what will happen to it now?

A friend gives her the tip that she can already transfer it to her son so she could give it to him. She has heard that heirs might be able to save on taxes. But Hannelore should seek advice from a specialist for advice. She didn't think it was a bad idea and and discussed it with her son Thomas. He then went to see a notary to discuss whether a gift was possible. At the notary's office Hannelore and Thomas were informed about the conditions under which a a gift can be made. The notary explained to them that no taxes taxes if the value of the house does not exceed a certain amount. amount. Now Hannelore and Thomas just need to know how much the house is worth. the house is worth. But who determines that anyway?

The notary explained to them that the local tax office is responsible for value of the property is the responsibility of the local tax office. However the office does not take into account individual features of the house such as a highway running past the house or a damp cellar. damp cellar. He said that under certain circumstances the value could be could be estimated higher than it actually is on the market. This means that the tax-free amount could be exceeded and taxes would be incurred. He therefore recommended that they both hire a real estate expert, such as an estate agent to value the property. This includes such details in the details like this into the valuation.

Thomas then did some research on the Internet and found a found a trustworthy estate agent. He commissioned him with a real estate valuation. Thanks to his expert knowledge, his knowledge the current situation on the real estate market, his experience and taking local market factors, he determined the value of the house. of the house. The result was that Hannelore could give the house to Thomas tax-free. as a tax-free gift. Both are happy that the future of the house has been could be provided for.

Do you have any questions about inherited property or would you like to know what your property is worth? Get in touch with us! We will be happy to advise you.