The transfer of wealth to the next generation is one of the biggest issues of our time. The last decades have produced significant amounts of wealth that fiscal authorities want to be part of.
This can lead to the estate which is to be transferred to the next generation being significantly reduced. Precious liquidity may be taken from your portfolio due to German inheritance tax laws. This is more than an issue of simply reducing the tax burden to an absolute minimum, because the most tax-saving solution is not always the best overall strategy for your company or your family’s estate. We are ready to discuss all of these considerations with you and support you in your transferring your property and wealth as you wish.
The taxation of inheritance and gifts has been subject to intense political debate for many years, and the German Inheritance Tax Act has been altered and amended numerous times.
In 2016 the Federal Constitutional Court of Germany forced legislators to amend the law when the court held that the principles for taxing business property are not in line with the constitution. This amendment has not made tax law any easier. Scholars and industry experts also assume that the current version of the law will be subject to challenges brought by new fiscal cases.
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