Inheritance planning
Inheritance planning
When a resident in Denmark dies the estate is taxed under Danish legislation. This will often result in taxation on the profits and gains of the deceased – followed up with inheritance taxation on top. Depending on the values and heirs the estate may suffer 50% tax plus 15-36% inheritance tax.
However it does not have to be this way. There are a number of ways and strategies to avoid or minimize this taxation. Family inheritance planning can make a huge difference.
Before the estate becomes an estate – whit everybody alive – the possibilities are many.
A key issue is often to determine if the estate can become tax free. If an estate can be valued bellow DKK 3.250.000 (and 6.500.000 if it´s an estate for a married coule) it may become non-taxable on all profits and gains – even if the same profit and gains would have been taxable in any other situation but an estate. Quite often we assist families with planning the estate before it becomes an estate and thereby avoiding og minimizing taxes. An important point is that gifts given while alive is taxed almost in the same way as inheritance.
If an estate is taxable it is equally important to look at the assets, when to realize them and how to realize them in order to secure a reasonable taxation.
At PrivatRevision we have comprehensive experience in dealing with domestic and international inheritance strategy and optimization of estates. We can assist you before and after an estate occurs and we can assist on every level. We can offer a full scale solution og just some hours of tax counselling – or something in between.