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Where Taxpayers and Advisers Meet

Uk german inheritance

Carli
Posts: 6
Joined: Wed Jun 26, 2019 8:43 pm

Uk german inheritance

Postby Carli » Wed Jun 26, 2019 9:56 pm

Hi. I'm in a complicated situation. I am resident in the UK and a citizen. In the past 6 months both my parents who were German citizens passed away. The will is divided 50% my brother and 25% each myself and my son (grandchild) My brother is executor. We haven't spoken in years and I am having to get advice on my own. My parent's affairs were really complicated with bank accounts in 5 countries, UK, Germany, US, Switzerland, and Israel. I estimate their total value to be in the region of 2 million Euros,. This includes a million pound house in the UK, their only property. To complicate matters, over the past few years my father starting gifting myself and my son with largish sums of money, paying the odd council tax bill, etc, for me. I guess the sum total comes to around 100,000 euros. Most of this is for a loan of 60,000e 6 years ago to my bank account in Spain where I have a holiday flat.. Of course, I will report all gifts as part of the estate. I have several questions.
1. Do I report gifts in the UK as part of the probate here, as the house was here, or does it count as part of their German estate? It would serve me better to declare in the UK as only gifts for the past 7 years are taken into account, and I get a £3000 annual 'gift allowance', whereas in Germany it's 10 years and no allowance.
2. Do I split my gifts into separate German (anything in Euros) and UK declarations (in pounds). My brother seems to be insisting on both and this does not make sense.I thought gifts were a 'moveable asset'
3. Is it true that if I'm non domicile in Germany the normal inheritance allowance goes from 400,000e to only 2,000e for children?
4. Do we pay double tax on the UK house as it was owned by Germans?
4. What constitutes a moveable asset, i.e. bank accounts? If they ate, then surely I need to add my gifts to the German estate.
4. Will I have to pay tax on my inheritance from Germany here in the UK, even though I've already paid German inheritance tax?
Thanks in advance.

pawncob
Posts: 4296
Joined: Wed Aug 06, 2008 4:06 pm
Location: West Sussex

Re: Uk german inheritance

Postby pawncob » Thu Jun 27, 2019 11:46 am

This doesn't quite agree with your other post, and it's German law, not UK but........
1. It's only declarable in Germany where he was domiciled and resident.
2. The value of the gifts is in Euros at the exchange rate at that time.
3.?
4.No.
4.A moveable assets is probably the equivalent of a "chattel" in the UK.
4.No.
With a pinch of salt take what I say, but don't exceed your RDA

AGoodman
Posts: 785
Joined: Fri May 16, 2014 3:47 pm

Re: Uk german inheritance

Postby AGoodman » Thu Jun 27, 2019 2:59 pm

Just to add: a movable is basically anything other than land so would usually include bank accounts

Carli
Posts: 6
Joined: Wed Jun 26, 2019 8:43 pm

Re: Uk german inheritance

Postby Carli » Fri Jun 28, 2019 11:10 pm

So would any gifts I have received be accountable to the German Estate? My brother is trying to twist things in his favour by having us declare gifts in the UK because it has a shorter time limit on it. I received the bulk of my financial help from my parents 6 years ago, so I would have to declare in either place, so it makes no difference to me. He, however had his mortgage paid off for him 7 to 10 years ago, so it would serve him to only make gift declarations in the UK, as his gift would no longer be counted as part of the estate. He is also the sole executor of the will, and I fear he is twisting things in his favour. Initially he asked me for figures for the German government. Now he has had a turn around, and wants me to fill out forms so we can pay the tax in the UK. Hence my questions. As executor, only he has access to all my parent's bank account details, so he can clearly see what I received, yet I cannot see what he was gifted and must go on his word. I fear he is hiding the truth. I am at a loss as what to do.

pawncob
Posts: 4296
Joined: Wed Aug 06, 2008 4:06 pm
Location: West Sussex

Re: Uk german inheritance

Postby pawncob » Sat Jun 29, 2019 11:26 am

You will need to contact a German lawyer if you wish to challenge his acts as Executor, and for advice on German IHT/Gift taxes.
With a pinch of salt take what I say, but don't exceed your RDA

Carli
Posts: 6
Joined: Wed Jun 26, 2019 8:43 pm

Re: Uk german inheritance

Postby Carli » Mon Jul 01, 2019 12:12 am

Ok. I'm going to try to simplify my question. Can my brother, (UK resident) as executor of my parent's German estate choose to list our cash gifts which came from UK bank accounts , as part of the UK probate? Thought only property in the UK was subject to this; all else are 'moveable assets (e.g. bank accounts in the UK) and must be declared as part of the German estate.

pawncob
Posts: 4296
Joined: Wed Aug 06, 2008 4:06 pm
Location: West Sussex

Re: Uk german inheritance

Postby pawncob » Mon Jul 01, 2019 11:08 am

Where were your parents domiciled? If it was Germany there's no UK probate involved.
With a pinch of salt take what I say, but don't exceed your RDA


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