CENTRO LAW What do you need to know about inheritances taxes? The death of a loved one brings many other aspects besides grief. There is paperwork to be done, authorities to be involved, the estate to be administered, and last but not least, taxes to be paid. This can also lead to a financial burden for the heirs, e.g., if real estate is inherited and the liquid assets to pay taxes are missing. However, inheritance tax is not owed in every case because tax laws often provide for tax exemptions, especially for close relatives. In any case, it is essential to plan during one's lifetime to gain clarity and to be able to make appropriate provisions. This should be done early to provide families with security and the ability to plan.
What is the definition of inheritance tax? Inheritance tax is a one-time tax payable by the beneficiary of the inheritance on the occasion of the transfer of assets upon death. The basis for the inheritance tax calculation is, in principle, the gratuitous transfer of assets upon death. Unlike inheritance tax, the estate tax is levied on the estate as a whole and not on the beneficiaries.