Inheritors: 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 treat their children equally when it comes to inheritance, but some deliberately favour one child over others. To avoid disputes, parents can consider selling a property to their preferred child instead of gifting it, as this can provide tax benefits. However, lawyers warn that selling at a discounted price or deferring payment can be risky and may be considered a disguised gift, triggering tax and inheritance claims from other siblings.
Experts recommend careful planning, including obtaining a valuation and setting out clear terms in a sale agreement, to minimize the risk of disputes.
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.
