- 3 min read
Donate early instead of bequeathing later
Useful information on the subject of gifts
If the deceased bequeaths assets to potential heirs during his lifetime, you can Heirsthis is referred to as anticipated succession. If the testator's assets include real estate, it may be advisable to make a gift to children, spouses or partners in order to benefit from tax advantages and to avoid disputes within the community of heirs after death.
Gifts can also serve to provide for the donor in old age, to secure the existence of the donee and/or to preserve the family assets.
Coordinate gift and succession
The gift and the actual succession should be coordinated as part of the estate planning. For this purpose, a so-called compensation arrangement is often included in the gift contract. It determines whether and to what extent a gift reduces the later inheritance.
Furthermore, it can be agreed that the value of the gift is to be offset against the statutory compulsory portion in the event of inheritance. Or a waiver of inheritance or compulsory portion may be stipulated. Finally, rights of reclaim are also important components of the gift contract. For example, the donor can reclaim transferred assets if the donee dies before him or becomes insolvent.
Going to a notary when making a gift of real estate
As a rule, gift contracts require notarial certification. If they are not notarised, however, they can still be valid. This is the case when the gift is executed, for example by handing over the object of the gift.
However, there is an exception when it comes to bequeathing real estate: the donation of land, real estate or shares in corporations must be certified by a notary.
Advantages
Taxes
Reduce tax burden for heirs
Provision for old age
Provide for donors in old age
Existence
Secure the existence of the donee
Family
Preserving family assets and preventing disputes over the estate
Annika Michelsen
Please feel free to contact us if you have any questions on this topic or would like advice on other real estate matters. We look forward to hearing from you.
Contact nowYou may also be interested in
Contact
Contact your personal advisor
Engel & Völkers Germany
Vancouverstraße 2a
20457 Hamburg, Germany
Tel: tel:+4940361310