When accepting an inheritance, the inheritance tax should be kept in mind. Challenging the acceptance of an inheritance due to a mistake regarding the inheritance tax is only possible with difficulty.
Inheritance law provides different exemption amounts for inheritance tax depending on the degree of kinship. The optimal use of the exemption amounts should always be considered before accepting an inheritance, according to the business law firm MTR Legal Rechtsanwälte, which also advises on inheritance law.
If there are several heirs with different exemption amounts, who takes the inheritance can make a significant tax difference. This should always be considered. Because once the inheritance is accepted, contesting the acceptance later due to a mistake about the amount of inheritance tax is difficult. This is shown by a ruling of the Higher Regional Court of Hamm from November 4, 2021 (Ref.: 10 W 125/21).
In the underlying case, a single and childless man had appointed his mother and brother as heirs in his will. Both accepted the inheritance. Later, the brother wanted to reverse the acceptance.
He argued that he had been mistaken about the amount of the inheritance tax and had assumed a significantly higher exemption amount. As the brother of the deceased, his exemption is only 20,000 euros. It would actually be more advantageous for him to renounce the inheritance, allowing his share to fall to the mother, whom he would subsequently inherit after her death. As a son, he could then claim a significantly higher exemption amount of currently 400,000 euros. Therefore, he declared the contestation of his acceptance of the inheritance.
However, the probate court and the Higher Regional Court of Hamm did not agree with the man. Citing the underestimated amount of inheritance tax, contesting the acceptance of inheritance due to a mistake is not possible, according to the Higher Regional Court. A declaration of intent can generally only be contested if there is a mistake about its content leading to significantly different legal consequences. However, the heir was not mistaken that the legal consequence of the acceptance of inheritance is the determination of the inheritance tax, but only about its amount. This is not a relevant ground for contestation, decided the Higher Regional Court of Hamm.
MTR Legal Rechtsanwälte advise on inheritance tax and relevant topics of inheritance law.
Get in touch now!➤ Inheritance Tax Attorney – Learn more now!
