Inheritance: With this trick, parents favour their favourite child when it comes to inheritance
If you sell real estate instead of giving it away, you can favour a child in terms of tax. The purchase price can be reduced, instalments can be deferred, paid out of the rent or partly waived later.
German parents often want to favour one child over others when distributing their assets, but this can lead to disputes and legal challenges. To avoid this, parents can consider selling the asset to the favoured child instead of gifting it, which can save on taxes. The sale can be structured with a lower price or payment terms, but experts warn that if not done properly, it can be considered a disguised gift and lead to tax penalties and disputes over inheritance.
Lawyers recommend getting a professional valuation, setting clear terms, and ensuring that any payment arrangements are reasonable and documented.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
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