Give away in installments

It makes sense for parents to transfer the house to the children while they are still alive. How to save inheritance tax and still live in the house or continue to dispose of the rental income.

Think carefully about how you will bequeath houses you have used and rented apartments - our expert advises.

Shen there has been no war on German soil for 74 years. Large and small fortunes have emerged, many of which are just passing on to the next generation. As a result of the major inheritance tax reform in 2009, the tax values ​​of real estate are now close to the market values, and as is well known, these have often risen sharply in recent years. This exacerbates the question of inheritance tax, because the very low standard values ​​that used to be decisive are no longer to be applied. But there are still many ways to reduce inheritance tax payments.

Lawyer and tax advisor Christian Roth from EY Law GmbH knows many cases from his practice like this one: Mother Renate became a widow in 2005. When her husband Dieter died 14 years ago, Renate decided to sell the family home. It was much too big for her alone, she admitted after a short struggle. Christian, the only son, was also not interested in the house. He had settled in another city. With the money from the house sale, Renate bought a commercial property which she rented out to supplement her pension. And managing the property kept Renate busy. All she needed was a small apartment, which she rented and in which she has lived ever since.