What happens to gifts to children before inheritance? Stepchildren of the Inheritance Act – How can stepchildren inherit?
One gift during life there is always a relationship between parents and children. The motives are diverse. In certain circumstances, a gift given to children during their lifetime may affect later inheritance.
If the recipient nevertheless receives this part of the property later as part of the normal inheritance, we also talk about an alternative expected succession. The legal basis in this case is the right of donation among the living.
The most important things at a glance
- Testators often give away part of their wealth before they die, for example as gifts to children during their lifetime
- One goal of the donation during life can be to reduce the tax burden for the later heirs
- The lifetime gift does not necessarily have hereditary consequences, but may have to be taken into account when inheriting
- There is a legal obligation to compensate children, which aims to remove financial disadvantage through a gift
What does donation before inheritance mean?
Adults in Germany generally have it the right to make a gift during life. This principle is based on the fact that every natural person has the right to decide on their own property. Even donating a house to children during their lifetime is initially not subject to any restrictions.
The consequence of a Donation before inheritance consists in the corresponding item or consideration being withdrawn prematurely from the subsequent estate. In this case, the recipient becomes the owner immediately. As a result, the new owner can do whatever he wants with the asset.
What is the purpose of a gift before inheritance?
A gift for children during their lifetime can have several purposes. This applies, for example, to cash gifts before death or the transfer of certain assets. a significant Goal is often so total reduces the tax burden for the recipient must be.
Like the inheritance tax, there is also one gift tax. However, the corresponding allowances can be used again every ten years. Logically, this does not work if it is an inheritance, because then the corresponding allowance is e.g. only available to the children once.
ONE another goal of gifts to children during their lifetime often consists of care of the recipient with the family should be guaranteed. Another typical reason for a gift during one’s lifetime is that the claim of others for a duty portion must be reduced by the gift.
In summary, the following main objectives are pursued with a donation prior to inheritance:
- Reduction of the tax burden by using high deductions
- Financial support for the recipient
- Reduce the mandatory portion requirements of other dependents
- Ensuring consideration from the children
The last point means that the giver gives the gift to the children attached to a condition. This may look like, for example, that the gifted child should take care of the later testator, for example take care of him.
What is expected succession?
In connection with gifts to children during their lifetime, it is indicated expected succession on. It concerns all transfers of assets that often take place because the recipient would later inherit this part of the assets anyway.
It can be, for example, a donation of a duty portion to siblings. Of course, donations cannot be given only to children. The advantage of such an expected inheritance through the donation is that the high supplements every ten years can be utilized. These amount to 400,000 euros per child and 500,000 euros for spouses.
Effects of donation during life on inheritance law
In principle, the gift must only be given to one child or to several children during one’s lifetime no consequences. As a rule, the next of kin do not have the opportunity to do anything against the donation during their lifetime. Donations can still have consequencesnamely after the testator has died.
Because the donation to only one child almost always affects the inheritance rights of other children. What claims they then have when the right of inheritance is later distributed depends on whether their claim to an inheritance or a forced share of the recipient is affected, and what instructions the testator has given in each individual case.
One credit of the donation to inheritance only if this is expressly stipulated in the will. One credit on it compulsory part must even be ordered at the time of donation. It is too late in the will.
What does the legal obligation to provide compensation to children mean?
Provided that the testator has not left a last will, the so-called Compensation obligation among children. This is based on inheritance law and means that children who have not received gifts can receive compensation. In that case, the gift would be taken into account before the inheritance.
In it Section 2050ff BGB states the conditions under which the gift to only one child during life results in a possible settlement of other children. If the obligation to compensate applies, then all children who have not received a gift from the testator during their lifetime will receive a slightly larger share of the assets.
The later testator and during his lifetime the donor may, however, prevent such compensation. However, the donor must make the corresponding arrangement immediately when the donation is made.
Does the donation affect the right to a compulsory portion?
In most cases, the donation during one’s lifetime has no significance for the later inheritance, with the exception of a possible liability for compensation for children who have not received the gift. However, there is still an exciting question in this context: “Is the donation effective?” during life on the forced part of other potential heirs?”.
In fact, in certain circumstances, the mandatory portion may be affected by the donation during one’s lifetime. The prerequisite, however, is that the donor one of his children excluded from the inheritance by will Have.
A distinction must be made between who is inherited. The gifted child or the gifted child’s siblings.
If the gifted child is disinherited, the value of the gift must only be taken into account if the testator has already stipulated in the gift contract that gift for the gifted child’s compulsory share claim is. A later agreement is no longer possible. The right to a compulsory portion is then calculated from the testator’s remaining assets.
If the sibling of the gifted child is disinherited, the so-called Compulsory share supplement requirement. This is based on section 2325 BGB. This may be the case if this gift was given within the last ten years before the deceased’s death. The condition is again that the child with the corresponding compulsory portion requirement excluded from inheritance by will became.
How CDR Legal can help you
Disagreements often arise in inheritance law, which also affect donations made during one’s lifetime. This often concerns so-called compulsory share claims etc whether a donation must be set off in the later inheritancet.
In such and other cases, it makes sense for those disadvantaged by the donation seek legal help. The same naturally applies to beneficiaries who want to defend themselves against claims from later heirs.
You can e.g. find legal support from those specializing in banking, capital market and inheritance law CDR Legal Office. First of all, you can already describe your situation during a free initial telephone conversation.
The law firm CDR-Legal will then discuss with you the options you have in your personal case. On request represents you CDR-Legal Of course for inheritance disputes, which for example have something to do with a gift to children during their lifetime.