Steuern: Wie Sie Ihre Erbschaft anzeigen müssen und wann Strafen drohen

When a close relative dies, few people immediately think of notifying the tax authorities. However, missing the deadline can lead to accusations of tax evasion. Agnes Fischl, a tax advisor and specialist in inheritance law from Munich, explains that many heirs assume the tax office will be automatically informed about the inheritance.

"However, this is often incorrect." While not all heirs need to file an inheritance tax declaration, they must notify the tax office about their inheritance. There are several pitfalls to avoid when doing so. The first is failing to notify the inheritance at all. Generally, anyone who receives assets through an inheritance must notify the relevant tax authority within three months of becoming aware of the inheritance.

Upon receiving the notification, the tax office may request an inheritance tax declaration. An exemption exists for inherited property through a testament that is opened by a German court, notary, or consulate, and clearly establishes the relationship of kinship between the heir and the deceased. However, not declaring an inheritance is not a violation and does not result in any penalties.

Fischl notes that if a person is certain that the inheritance does not exceed the tax-free allowance, they will not face any fines for not declaring the inheritance. If a person underestimates the value of an inheritance and thereby avoids paying inheritance tax, they could face accusations of tax evasion in the worst-case scenario.

Another mistake is notifying the wrong tax office. The tax office responsible for an inheritance depends on the deceased's last residence. It is not the same as the tax office where the deceased filed their income tax return. In some regions, such as Hesse, there are three inheritance tax authorities, while in North Rhine-Westphalia, there are nine inheritance tax authorities and 104 local tax districts.

It is crucial to find the correct tax office. Informing the wrong one means missing the deadline. A second error is incorrectly identifying one's share of the inheritance. This can occur when there are multiple heirs, additional testamentary beneficiaries, or co-heirs and post-heirs. In doubt, consulting a tax expert is advisable and avoiding assumptions in the inheritance registration or later tax declaration.

Providing false information could potentially be considered an attempt to evade taxes. The third mistake is forgetting to include debts and costs in the inheritance registration. The notification form includes a comprehensive list of possible assets, from agricultural land and forests to cash and burial expenses, which should be considered when lowering the inheritance's value.

The funeral costs can be claimed as a flat rate of 15,000 euros. The fourth error is neglecting to take advantage of tax-free allowances. For spouses and life partners, the allowance is 500,000 euros; for children, it is 400,000 euros; for grandchildren, 200,000 euros; and for all others, it is 20,000 euros. These allowances are renewed every ten years.

Additionally, heirs can use special tax-free allowances, varying depending on the tax class of the inheritance. Near relatives, such as spouses, registered life partners, children, and grandchildren, have Tax Class I, which allows for an 41,000 euro allowance. For movable objects like watches, jewelry, or cars, near relatives have an additional allowance of 12,000 euros.

The fifth mistake is not utilizing the tax-free allowances for gifts. Since inheritance and gifts share a common tax-free allowance, gifts given within the last ten years must be reported in the inheritance tax declaration. Honesty is essential; lying about gifts will likely be considered tax evasion. The sixth error is not declaring all gifts given within the past ten years.

Gifts should be listed truthfully, and if appropriate, the occasion can be mentioned to hope that the tax office considers it a customary present. If this works, no tax will be due according to paragraph 13, subparagraph 1, number 14 of the ErbStG. The seventh and final mistake is overlooking the need to investigate the real estate market before focusing on other assets.