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.