We are planning to donate a house to take advantage of tax benefits. But what happens if we, the donors, die early? Will it be taken into account for tax purposes?
An elderly couple wants to pass on their house, worth 500,000 euros, to their descendants now. The man is the sole owner, and now he wants to pass it on to his children so that they can already use the tax-free allowance of 400,000 euros per person. Not only can each child inherit this amount tax-free, but they can also receive it as a gift over the course of ten years without having to pay taxes. Such an early gift can make sense if the entire inheritance would exceed the tax-free allowance – you can basically use it twice.
Source: Stern
