Gift and inheritance tax

Under German law, gratuitous gifts are taxable regardless of whether they are made during life (gift) or upon death (inheritance/bequest/mandatory share, etc.). However, the relevant Inheritance Tax Act provides for certain exemptions and privileges that are linked to the relationship of the persons involved and the type and scope of the assets transferred. The donor or their legal advisor should always focus on the materially desired legal consequences. However, the same or a similar legal situation can often be achieved through different arrangements, one of which results in a greater and the other in a smaller amount of inheritance or gift tax. Sound inheritance law advice will therefore always also deal with the tax aspects of the desired measure.