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 tax issues. To avoid this, parents can sell the asset, such as a property, to the favoured child, allowing for tax benefits and flexible payment terms. Dorothea Mund, a lawyer with Rose & Partner, warns that simply selling the asset does not guarantee no tax or inheritance disputes will arise.
The sale must be conducted at a fair market price and with careful planning to avoid being considered a disguised gift.
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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