Hello!
Just to start – we are still at the very beginning of our considerations. If it comes to it, we will definitely consult a notary.
My grandparents (who we partially take care of) have offered to make a gift and transfer their house and land to us.
The house is quite small and in need of renovation. Since both still live there, an extension to the house or a reconstruction and extension of the outbuilding is an option.
If the grandparents make the gift to me as a grandchild, the three children (unless they waive their rights) must be compensated.
But what about the other three grandchildren? Do they also have a claim to a compulsory portion, and if so, how much is it?
Would it be more sensible then to make the gift to Child 1 (in this case my parents) and have them pass it on to me? Then the grandparents’ Children 2 and 3 would be paid out, along with my brother.
Am I correct in this?
Just to start – we are still at the very beginning of our considerations. If it comes to it, we will definitely consult a notary.
My grandparents (who we partially take care of) have offered to make a gift and transfer their house and land to us.
The house is quite small and in need of renovation. Since both still live there, an extension to the house or a reconstruction and extension of the outbuilding is an option.
If the grandparents make the gift to me as a grandchild, the three children (unless they waive their rights) must be compensated.
But what about the other three grandchildren? Do they also have a claim to a compulsory portion, and if so, how much is it?
Would it be more sensible then to make the gift to Child 1 (in this case my parents) and have them pass it on to me? Then the grandparents’ Children 2 and 3 would be paid out, along with my brother.
Am I correct in this?
Note for non-experts:
To my knowledge, there is no mandatory inheritance share (forced share) for grandchildren as long as children are still alive.
A mandatory inheritance share can only apply if the grandparents pass away; for now, it is just a gift.
Of course, it could also be a partial gift if you had to compensate all of your grandparents’ children.
I cannot say how a pre-gift to a grandchild who is not entitled to inheritance would be treated in the event of death.
Where do the grandparents plan to live then? Is a lifelong right of residence intended?
Furthermore, it should be checked whether gift tax might apply here, as exemption amounts between grandparents and grandchildren are lower than between parents and children. So first, the question is what the property and house are worth and whether a right of residence will be registered or not.
You will have to consult a notary anyway since this involves a property transaction. However, you will probably receive legal advice mainly from a lawyer.
To my knowledge, there is no mandatory inheritance share (forced share) for grandchildren as long as children are still alive.
A mandatory inheritance share can only apply if the grandparents pass away; for now, it is just a gift.
Of course, it could also be a partial gift if you had to compensate all of your grandparents’ children.
I cannot say how a pre-gift to a grandchild who is not entitled to inheritance would be treated in the event of death.
Where do the grandparents plan to live then? Is a lifelong right of residence intended?
Furthermore, it should be checked whether gift tax might apply here, as exemption amounts between grandparents and grandchildren are lower than between parents and children. So first, the question is what the property and house are worth and whether a right of residence will be registered or not.
You will have to consult a notary anyway since this involves a property transaction. However, you will probably receive legal advice mainly from a lawyer.
And gifts have (almost) nothing to do with inheritance.
If grandparents give you a gift during their lifetime, the estate subject to inheritance is correspondingly smaller.
Your tax exemption for inheritance is then reduced or may not apply if 10 years have not passed.
Grandparents can give gifts to whoever they want... no one else has to be compensated.
Grandchildren do have a legal claim to a compulsory portion, but they have no entitlement as long as the parents are still alive. To my knowledge, grandchildren can also be excluded. However, this is not necessary regarding gifts.
The tax exemption for gifts is €200,000 (per grandparent to each grandchild). So, a maximum of €400,000 per grandchild in total. This can only be fully utilized if the house belongs to both grandparents...
Any amount above this is subject to gift tax.
If grandparents give you a gift during their lifetime, the estate subject to inheritance is correspondingly smaller.
Your tax exemption for inheritance is then reduced or may not apply if 10 years have not passed.
Grandparents can give gifts to whoever they want... no one else has to be compensated.
Grandchildren do have a legal claim to a compulsory portion, but they have no entitlement as long as the parents are still alive. To my knowledge, grandchildren can also be excluded. However, this is not necessary regarding gifts.
The tax exemption for gifts is €200,000 (per grandparent to each grandchild). So, a maximum of €400,000 per grandchild in total. This can only be fully utilized if the house belongs to both grandparents...
Any amount above this is subject to gift tax.
N
nordanney8 Sep 2020 16:12Maleled schrieb:
The grandparents will continue living there and have the right of residence.This effectively reduces the gift’s value to nearly zero, given that the house is defined as "small and in need of renovation" (unless the grandparents are already very old). Otherwise, as my predecessors have already mentioned: a gift is not the same as an inheritance!