When accepting an inheritance, the inheritance tax should be kept in mind. Contesting the acceptance of inheritance due to a mistake regarding the inheritance tax is challenging.
Inheritance law provides for different allowances on inheritance tax depending on the degree of kinship. The optimal use of allowances 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 allowances, it can make a significant tax difference who accepts the inheritance. This should always be considered. Because once the inheritance is accepted, it is challenging to contest the acceptance later due to a mistake about the amount of inheritance tax. This is illustrated by a ruling from the Hamm Higher Regional Court on 04.11.2021 (Case No.: 10 W 125/21).
In the underlying case, an unmarried and childless man had designated his mother and brother as heirs in his will. Both accepted the inheritance. Later, the brother wanted to reverse his acceptance.
He argued that he was mistaken about the amount of inheritance tax and had assumed a significantly higher allowance. As the brother of the deceased, his allowance is only 20,000 euros. In fact, it would be more advantageous for him if he waived the inheritance, allowing his share to fall to his mother, whom he would then inherit after her death. As a son, he could claim a much higher allowance, currently 400,000 euros. Therefore, he declared the contestation of his acceptance of inheritance.
However, the probate court and the Hamm Higher Regional Court thwarted the man’s plans. According to the OLG, contesting the acceptance of inheritance due to a mistake about the amount of inheritance tax is not possible. A declaration of intent can only be contested if there is a mistake about its content resulting in significantly different legal consequences. The heir was not mistaken about the legal consequence that acceptance of the inheritance establishes the inheritance tax, but only about its amount. This is not a relevant reason for contestation, decided the Hamm Higher Regional Court.
MTR Legal Rechtsanwälte advise on inheritance tax and relevant topics of inheritance law.
