The Tax Court of North Rhine-Westphalia (Finanzgericht Münster) has held on 12 April 2018 , that German inheritance tax cannot be avoided or reduced by a deed of variation as the German inheritance tax is triggered by the death (and not the distribution) and only a renunciation (Ausschlagung) has - from a German perspective - retroactive effect. Instead, a deed of variation may be considered a gratious transfer from the original beneficiary of the Will to the beneficiary under the deed of variation. Consequently, the deed of variation may trigger German gift tax (Schenkungsteuer)
FG Münster: Deed of Variation not recognized in Germany for Inheritance and Gift Tax Purposes
FG Münster: Deed of Variation not recognized in Germany for Inheritance and Gift Tax Purposes
Do You have any Questions?
We look forward to assisting you. For the sake of simplicity and efficiency, we request that you use our contact form for your inquiry and describe the matter as clearly as possible. In addition, you can include relevant attachments. After submitting your inquiry, we will contact you either by telephone or e-mail within one working day. If we can assist, we will suggest a time and date for an initial consultation. Of course, you can also contact this firm or a particular attorney directly to make an appointment for a personal consultation or telephone consultation (find contact details here). Please be advised that no attorney-client relationship is created by sending us an email or filling out this contact form. For information on our fees, please click here.
Upon request, we offer consultation via Zoom. For general information on how to join an instant meeting through an email invite, please visit the Zoom website.
Related publications
- Collection of a German Bank account of a Deceased domiciled abroad
- Administration of a nonresident Decedent’s German Assets
- Recognition of a German Will in California as regards to Form
- Preliminary and Subsequent Heirs under German Law
- German Inheritance and Probate Law - FAQ
- Collection of a German Bank account of a Deceased domiciled abroad
- German Inheritance Tax
- Intestate Succession in Germany
- German Gift Tax
- Recognition of an American Will in Germany
- Wills in Germany
- Wills for nonresidents with Property in Germany - German Will or Global Will
- Mandates in German Civil Law and their use in international Estate Planning
- Taxation of U.S.-Trusts under the German Inheritance and Gift Tax Act
- Estate Planning for U.S. persons with Property in Germany: German Situs Will or Global Will?
- German-American Probate and Inheritance Law - FAQ
- Inheritance and Estate Tax in German-American Estate Matters - FAQ
- Gifts in German Civil Law
- Germany-U.S. Estate and Gift Tax Treaty
- Germany-U.S. Income Tax Treaty
- German Inheritance Tax - FAQ
- Recognition of a Will executed under the laws of California in Germany
- German Inheritance Law: The Compulsory Share
- Administration of a U.S. Domiciled Decedent’s German Assets by a U.S. Personal Representative
- Disclaiming an Inheritance in order to avoid German Inheritance Tax
- Usufruct in German Civil and Tax Law – Introduction
- Community of Co-Heirs in Germany
- Executor of the Estate under German Law
- Durable Executor
- Liability for Estate Debts in Germany
- German American Estate Planning
- U.S.-Trusts in German-American Estate Planning
- Taxation of Capital Gains on Sale of Real Property situated in Germany and German-American Estate Planning
- Taxation of a Deed of Variation in Germany
- Taxation of U.S. Citizens and U.S. Residents of Rental Income Derived from Real Property Located in Germany
- Real Property Capital Gains Taxation for Non-Resident Aliens Residing in Germany
- Gifts from Abroad to U.S. Persons -1
- Taxation of Rental Income Derived from Real Property located in the U.S. for Non-Resident Aliens Residing in Germany
- Trust Quaterly Review: Election Fever
- STEP Journal: "A turn for the wurst"
- Disclaiming an inheritance under German law
- Gifts from Abroad to U.S. Persons
- Mental Incapacity and Will Contests in Germany
- Living will, Durable power of attorney and appointment of custodian in Germany
- Forced Heirship under German Law
- Taxation of the Estate of Non-resident US-citizen in Germany
- Decisions of European Court of Justice on Inheritance Tax
- German Certificate of Inheritance
- International Probate: Germany
- USA: Estate Tax treaties