House on parents' property - inheritance problems?

If your parents presumably have less than 10 years to live (sorry if that sounds macabre), a gift also makes no sense anymore, since the gift will still be counted towards the inheritance.

Hi,

how many times do I have to tell you: this here:

that I built and paid for the house myself

is absolutely irrelevant when calculating the estate and thus the inheritance tax!
If you are in the land register: the house is your house, not part of the estate
If your parents are in the land register: the house is not your house, because you have basically given it to your parents as a gift. And thus it is part of the estate.

Best regards,
Andreas

If your parents probably have less than 10 years to live (sorry if that sounds morbid), a gift also doesn't make sense anymore because the gift is still counted towards the inheritance.

I believe the amount that can be credited is reduced by one-tenth each year. Therefore, it would still make sense.

Otherwise, the tax advisor should have given us a hint back then.

She definitely did. Or she was commissioned differently: If you gave her the instruction to save as much money as possible in advance, then it was the right solution at that time. One quickly forgets that you only get what you order. Maybe a comprehensive consultation was not even desired back then because you jumped into the race with the idea of building on your parents' property. However it was back then, it can't be reconstructed. It doesn't help anymore either. You get clarity with the current land register excerpt. That is the only thing that counts today. Are you still paying off the house? Is the loan agreement in your name? The bank advisors surely warned about the construct back then. Could it be that your parents arranged everything and you just signed?

I will have to pay a lot of inheritance tax anyway, so it would be good if my house does not count.

The first €400,000 are exempt. Honestly... you will be able to afford it. Complaining at a high level.

I still can't imagine that it's really like this. What applies to property tax must also apply to inheritance tax. Otherwise, the tax advisor should have given us a hint back then.

It was also clear to my tax auditor that this is my house when he asked me if I had taken parts of it into the business assets. Which, by the way, I did not do in order to avoid having to pay value-added tax later upon a sale.

What would be your opinion on how to proceed now? I really wish my parents a long life, but whether they hold out for another ten years is quite doubtful.

Should I just ask the tax office about this?

Matthias

It doesn't matter whether you can imagine it or not, that's just how it is.

Whether you want to transfer your house into your business assets (or part of it) has absolutely nothing to do with whether you are the civil law owner...

Honestly? Find yourself a good tax advisor. I keep finding it shocking how many schemes people create just for the purpose of saving taxes but have absolutely no idea about the further consequences.

The easiest thing would have been for your father to transfer the property to you back then; then probably nothing would have happened tax-wise. Why wasn't that done?

I’m sorry to burst your bubble. My uncle has exactly the same setup. He placed his cabin on my grandparents' property. My grandpa passed away 10 years ago. My grandma inherited EVERYTHING! This didn’t have any side effects for us because everything just stayed the same as before. My mother had already been paid out earlier when she built her house. Therefore, all the children kept quiet and life went on. How things would work out now if my grandma passes away... no idea. I believe the property has already been transferred to my uncle. But I can't say for sure.

Conclusion: You urgently need to sort something out. Either with a gift or you divide the property. Who pays the property tax bill is irrelevant. Because it is exactly that: a bill and not an ownership statement.