“The Pitfalls and Unfairness of Inheritance Tax: Expert Insights and Solutions”

“This tax is antisocial and unfair,” Hold made clear to the wide audience of young and old right at the beginning. The traffic light government in Berlin has changed the valuation regulations in such a way that as of January 1st, 2023 the taxable value of real estate has risen sharply, especially in areas with high standard land values. Some properties have become 61% more valuable almost overnight. As a result, many heirs are forced to sell their property. He reported on a case in which the taxable value of an apartment building in Munich had increased from 2.5 to over twelve million euros since 2010. In the case of sales, the surcharges generally went to large investment companies. “Then the spiral of luxury renovations and rent increases gets underway and existing tenants are pushed out,” said Hold, who also worked as a debt restructuring judge for a number of years. “And one thing is also clear: the private landlord, for whom a reliable long-term tenant is more important than maximum returns, is definitely the more social landlord. Annoyingly, we hardly get any support from other federal states, because a significant part of the Bavarian inheritance tax revenue goes directly to the state financial equalization!”

Lawyer Michale Ott-Eulberg made it clear to the audience at the beginning of his very vivid and informative presentation about the pitfalls and pitfalls of inheritance law: “The main mistake is a missing will.”. He also warned against the current model of the so-called Berlin Testament. A weak point is what the lawyers call the binding effect. That would mean nothing other than that changes or a revocation are only possible together. “When a partner dies, the options for the bereaved are very limited,” Ott-Eulberg explained. The specialist in inheritance law has been working as a lawyer since 1985 and was one of the first lawyers in Bavaria to be authorized by the Bar Association to use the designation specialist lawyer for inheritance law. In principle, Ott-Eulberg advised exploiting the tax allowances through forward-looking donations and thereby anchoring the usufruct or right of residence. He also made this clear in the answers to numerous questions from the audience.

In his closing remarks, the member of parliament Alexander Hold confirmed that an increase in the allowances, as is currently being discussed in the federal government, would not solve the problem: “Business assets are spared up to €26 million, while a caring partner only has an allowance of €20,000. No matter what you change about it, the inheritance tax is always unfair. So we should follow other European countries like Austria and Norway and abolish this tax altogether. At least we want a country opening clause,” he affirmed. “Then each federal state could decide for itself whether to levy an inheritance and gift tax.”