Federal Constitutional Court

Before the Federal Constitutional Court declared the inheritance tax law may be partly for ineffective, yet substantial inheritance taxes can be saved company succession and greater wealth. The Constitutional Court examined the inheritance tax and gift tax law on its constitutionality. Still business assets can be transmitted virtually tax-free lifetime transfers on the next generation. That may be changing soon. Therefore, experts advise to act now and take advantage of the time remaining. Until end of 2008 the inheritance tax law (ErbStG) was comprehensively amended after the Federal Constitutional Court (BVerfG) had declared parts of the old rules unconstitutional. But even after the amendment to the constitutional doubts.

The Bundesfinanzhof (BFH) has presented the law to review the Constitutional Court therefore end 2011. A decision is expected in the first quarter of 2014. In the summer of this year, the legislature has a number already by a further act of Plugged tax loopholes. In particular the so-called cash LTDs, involving large cash tax-free were being given away, was destroyed. In addition to the already prevented cash limited liability companies, it is the Federal fiscal court and with him a thorn in the side of that business assets (still) very strong transparency inherited or given away can be the tax authorities, while there are not these favoured possibilities for private assets. He looks hurt therefore the principle of equality. Although the Federal Constitutional Court in an earlier decision had expressly for allowed a privileging of company assets, (keyword job security) would be connected in the long run for the benefit of the common good and unlike normal private not any could be issued as. However, a restriction of the tax breaks for the transfer of business assets is widely expected. A whole range of designs is entirely legal possible, which Assets completely tax-free or at least tax-free can be transferred to a large extent.