Assets: Donation to children - Why it can become complicated
Due to concerns about an increase in inheritance tax, many wealthy individuals are currently opting to make gifts to the next generation ahead of schedule. However, for minors, this often turns out to be more expensive than expected.
Wealthy individuals in Germany are increasingly gifting assets to their children and others during their lifetime to minimize inheritance tax liabilities, as uncertainty surrounds potential reforms to the inheritance tax system. The strategy involves transferring assets to family members, with specific tax-free allowances applying depending on the relationship between the giver and receiver.
Lawyers Kerstin Linder and Julia Roglmeier highlight that gifting to minors can be complex, requiring consideration of factors such as the child's age, the type of asset being gifted, and the potential for conflicts of interest. In some cases, a court-appointed guardian or approval from a family court may be necessary to validate the 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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- Assets: Donation to children - Why it can become complicated handelsblatt.com
