Inheritance planning
When wealth or specific assets are to be transferred to the next generation, a number of considerations must typically be balanced against one another.
For most, a central objective is to ensure that no more tax is paid than absolutely necessary. The aim, of course, is to relieve the heirs of estate duty/inheritance tax. Equally important, however, is to minimize taxation on capital gains and appreciation in the value of the estate’s assets.
In relation to the transfer of real property, it must often be considered whether the property should be transferred inter vivos or through the estate, and whether it should be transferred at the lowest possible value in order to pass on either a taxable or tax-exempt gain to the next generation. Conversely, it must be assessed whether it is preferable for the estate to retain certain assets if a future estate may qualify for tax exemption. Naturally, many other tax-related considerations may also be relevant.
Naturally, many other tax-related considerations may also be relevant.
These tax considerations serve the overall purpose of maximizing the net value of the inheritance.
Many parents also reflect upon whether the inheritance should be distributed equally or whether certain heirs should be favored. Should certain assets, properties, or businesses remain within the family? Should special consideration be given to stepchildren, financially disadvantaged children, or other circumstances? Additionally, some may prefer that the inheritance is distributed only after the passing of the surviving spouse.
Estate planning often requires a careful combination of tax, property, and inheritance law, while at the same time maintaining a sharp focus on the testator’s wishes.
PrivatRevision has extensive experience in estate planning. We also cooperate with a number of attorneys with particular expertise in family law and the administration of estates. We can therefore assist with planning, execution, and – if desired – the administration of the estate in accordance with the testator’s specific wishes when the time comes.
Please feel free to contact us for further information or to arrange a non-binding initial consultation.