Assets: Gifts to Children – Why this can get complicated

Because of concerns about inheritance tax reform, many wealthy people are currently preferring to make gifts to the next generation. But for minors, this is often more expensive than expected.

Frankfurt. Give away money and real estate during your lifetime instead of inheriting it later. This has long been a proven strategy for wealthy people to save inheritance tax. Given the uncertainties surrounding a possible inheritance tax reform, it is currently gaining popularity.

The focus is not only on transmission to adults, but also to children. “We are currently increasingly supporting donations to minors,” says Kerstin Linder, specialist lawyer for inheritance and tax law at the Heussen law firm.

Depending on the age of the children and the type of assets being donated, it can often be more complicated than many people assume. Two lawyers explain what gift givers should consider and why such considerations are particularly important at the moment.