Transfer of property from mother-in-law to me and my wife

Hello everyone,

my mother-in-law had farmland in an area that has now become building land.

Since my mother-in-law herself has no use for the property, we agreed that we would pay the development costs and then get the property for our house.

The realignment is now legally binding and my mother-in-law has been registered as the owner in the land register for the property.

Now we, that is, my wife and I, would like to be entered in the land register instead of my mother-in-law. Now the question for me is how we do this best. As far as I know, my mother-in-law can transfer the property to my wife without incurring real estate transfer tax.

Our plan is that my mother-in-law does exactly this, and then my wife adds me as a second owner in the land register.

Is this possible without incurring real estate transfer tax?

Furthermore, we are paying my mother-in-law 65,000 euros for the undeveloped land because my wife also has a sister so that everything is fair and no one has an advantage. Is it advisable or maybe even required that these 65,000 euros be recorded in the contract by a notary or can we just do it without a notary?

Perhaps someone here is familiar with this or has had a similar case and can help me.

If it matters, the property is located in Baden-Württemberg.

You should make sure that there is enough* time between step 1 and 2, so that the tax office does not consider it a chain gift.

*undefined period, in our case it was a little over 3 months, but I give no guarantees.

It would have been smart** to do both parts before the conversion.

**in terms of saving costs at the notary.

Get tax advice on who writes what, where, and when.

If "you" pay the sister something, this could also lead to tax expenses.

There is also cash.....

No real estate transfer tax was due for us, and only one person was in the line of inheritance. So basically the same situation as with you. Just put the purchase price in the contract, then there will be clarity in the inheritance dispute. You can ask the notary whether they consider that sensible.

There is also cash.....

Call for tax evasion ... how nice. Alternatively: You disgust me!

Call for tax evasion ... how nice. Alternatively: You disgust me!

Oh how "nice"! Politeness really is your strength.

Otherwise, honestly, as if you wouldn’t try to save money by dodging taxes or other charges. By the way, what is not forbidden is allowed. As long as you don’t engage in cash transactions on illegal ground, everything is fine. No tax evasion.

Regarding the case: I would arrange it through the will so that you simply receive the named amount less from the mother’s inheritance. Or you pay a cute installment to the mother-in-law, in the sense of financial support, pay here for a repair and there for a new couch.