Who Pays Inheritance Tax on a Legacy?

Who Pays Inheritance Tax on a Legacy?

The legatee must pay tax on the legacy in the form of inheritance tax. In principle, the inheritance tax due on the legacy is to be paid by the legatee, unless the testator has imposed the tax liability on the obligor.

Who pays off the heirs?

Basically, in a community of heirs, there is no right to payment of the inheritance by the other co-heirs. If you are not the sole heir, you are automatically part of a community of heirs with the other heirs, whose task is the joint administration of the estate.

Who is liable for inheritance tax?

According to Section 20 (3) ErbStG, the estate is liable for the tax of those involved in the inheritance until it is settled (Section 2042 of the German Civil Code). This means that the heirs must tolerate the enforcement of the estate for claims arising from the inheritance tax obligation of an heir until the inheritance has been fully settled.

Are heirs joint and several debtors?

The heirs are jointly and severally liable for the joint debts of the estate.

What is the difference between a will and a legacy?

If the will does not specify when the object to be bequeathed is to be handed over, the heir can determine the time himself. In contrast to an inheritance, a legacy can only be granted through a written disposition of the testator – i.e. through a will or an inheritance contract.


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