Inheritance for unmarried couple and subsequent construction project

Good morning!

I would like to know how you assess the following scenario:

Man A and woman B are currently living together unmarried, but a marriage is already planned. Man A may inherit a piece of land from a person C, who is not related to him for tax purposes, possibly before the marriage. Therefore, he will have to pay inheritance tax of 30%.

Man A and woman B want to build on the land he inherited soon and live together in the house.

Man A and woman B would like to both be listed in the land register and also jointly finance the house construction. Both understand the property law aspects. However, the question concerns the taxes involved. Ideally, they want to share the inheritance tax from their respective available equity. Therefore, both ask themselves the following:

[*]Is gift tax incurred for Man A if woman B gives him half of the inheritance tax and they pay the inheritance tax together? The half share of the inheritance tax will very likely exceed the exemption limit of 20,000 euros for a gift.
[*]Is any kind of tax incurred if Man A has woman B entered in the land register and they share the inheritance tax?
[*]Is any kind of tax incurred if Man A has woman B entered in the land register and he bears the inheritance tax alone?

Or are they both overcomplicating things? Should A and B marry earlier?

Thank you very much for your answers

lawyer

Definitely. But until then, A and B would have liked to have a tendency

So the first tip addresses the last question and the answer would be "Yes". At least a previous marriage (civil marriage) would simplify everything because then less has to be arranged.

For everything else, it probably applies in theory that gift tax would be incurred if Mrs. B gifts Mr. A half of the inheritance tax (minus the exemption amount). That you can also run the whole thing in a roundabout way is another matter. Then the man simply pays the inheritance tax and the woman pays other items of equal value. Since the inheritance tax is levied anyway by Mr. A, a joint official payment will not be possible.

If both are to be entered in the land register, it could be considered a gift and Mrs. B would have to pay tax on half the property (the value minus the €20,000 exemption). Only a tax advisor or possibly a notary can say this with legal certainty. Everything would simply become easier if you are married, which would basically be sufficient for the "transfer" of half the share to the woman. A "sharing" of the inheritance tax would also be possible, for example, through a private loan!

...Notary/Tax advisor...

In general, if B is entered in the land register, it is a gift if no purchase contract was made. Before the marriage with a lower exemption amount.

The marriage only changes something about the matter in the second step. Even if both are already married in the event of inheritance, only A inherits. And only A is the owner. If he lets B be entered, the first paragraph applies again.

P.S.: You can only share the inheritance tax internally. Externally, A always has to pay it. If he obtains the money from somewhere else, that is again a separate case.

Edith: In my opinion, the cleanest and simplest solution would be if B acquires/buys half of the property from A. Of course, the capital must be available for this. Alternatively, indeed as a gift after the marriage due to exemption amounts. Then these are exhausted for 10 years.

Thank you!

P.S.: You can only split inheritance tax internally. Externally, A always has to pay it. If he obtains the money elsewhere, that is a separate case again.

That is clear, perhaps it was formulated somewhat unclearly. It is about the money flow from B to A.

Thank you!

That's clear, maybe it was formulated a bit unclearly. It's about the flow of money from B to A.

Money flow without consideration is always a gift.

If the consideration consists in the land register entry, it gets very dangerous, then it would be a purchase which is not possible without a notarized purchase agreement for real estate anyway.