Transfers / Gifts

 

There are many people who consider to transfer already during their lifetime part of, or even their entire, assets by way of anticipated heir to their children or other beneficiaries. Such transfers typically require a notarial recording in order be effective, e g. in case of a promise to make a gift, the transfer without consideration of real property, parts of a heritage or shares in a limited liability company, as well as in many cases of connected waivers of hereditary rights by statutory heirs.

The decision whether it makes more sense to transfer assets already at lifetime or to do that by way of a testamentary disposition will need to be taken having regard to all legal and tax consequences relating thereto.

The transfer of assets without consideration already during lifetime may have the following advantages:

  • under the Inheritance and Gift Tax Act tax free amounts may be used several times in case the transfer is effected over time in instalments;
  • by granting the transferor a living right on the transferred real property or the commitment of the beneficiary to make ongoing payments to the transferor it is possible to insure adequate housing resp. income of the transferor in the future;
  • the transfer of real property by parents to their children already during lifetime can on the one hand release the parents from the burden of maintaining the property and on the other hand enable the children to establish their own family home.

As notary I will – following a personal meeting, ideally together with your tax advisor – draft the documentation bespoke for your situation and your requirements.

Please do not hesitate to make an appointment.

Telephone: 06128 48846-28 (Ms. Christina Sedlak, head of notary office).

 

Please also note the information regarding the above-captioned matter provided by the Federal Notary Chamber.

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