It estimates a beneficiary’s German inheritance tax liability based on the relationship to the decedent (tax class), the taxable acquisition (net assets received after deductions), applicable personal allowances and exemptions (e.g., family home, business property), and the progressive rate schedule. Each beneficiary is calculated separately.

1. Scope: Determine unlimited vs. limited liability (worldwide vs. German-situs assets).
2. Gross assets: Value the assets passing to the beneficiary at date of death.
3. Deductions: Subtract debts, funeral/estate costs (actual or statutory lump sum), and certain liabilities.
4. Aggregation: Add taxable prior gifts from the decedent to the same beneficiary within the statutory look-back (aggregation affects allowance and rate band).
5. Exemptions/Reliefs: Apply personal allowance, spouse/child maintenance allowance (if applicable), family-home and business-property reliefs, and charitable exemptions.
6. Tax class & rate: Determine the progressive rate by tax class and taxable base.
7. Credits: Consider treaty/foreign-tax credits in cross-border cases.

Yes. If the decedent or the beneficiary was German-resident, the calculator typically assumes unlimited liability (worldwide assets). If both were non-resident, select limited liability and enter only German-situs assets (e.g., German real estate, certain business interests).

• Real estate: Use a market-aligned value as of date of death; Germany applies statutory methods that approximate market value.
• Securities/cash: Use date-of-death values and applicable FX conversion.
• Business ownership: Use a defendable enterprise value. If you expect German business-property relief (85%/100%), tick the relief options and ensure continuation/asset-mix tests are met.

Enter estate debts (e.g., mortgages, tax liabilities) and death-related expenses (funeral, tombstone, probate, necessary administration). If you do not itemize, you may select the statutory lump-sum option where the tool offers it.

German law aggregates prior taxable gifts from the same decedent to the same beneficiary within the statutory look-back period. This can reduce the remaining allowance and push the taxable base into higher rate bands. Enter prior gifts by date and amount so the tool can aggregate correctly.

• Personal allowance: Applied based on relationship (tax class). It reduces the taxable base.
• Maintenance allowance: The tool applies spouse/child maintenance relief (where selected) on top of the personal allowance, subject to statutory limits and coordination with survivor’s benefits.

Yes—if the beneficiary acquires the principal residence and meets self-use conditions (including minimum holding/use periods), you can enable the family-home exemption for that property. If conditions later fail (e.g., early sale), the exemption may be clawed back—this is not modeled retroactively by the calculator.

Select the relevant relief level for qualifying business assets. The 100% option requires stricter tests (e.g., wage-sum and administrative-asset thresholds over a longer monitoring period). If you are unsure, start with 85% and run scenarios. The calculator assumes those statutory tests are satisfied—it does not verify them.

Separately for each heir. Enter the share/value each beneficiary receives and run the calculator per person. Allowances and rates are applied individually based on the relationship and each beneficiary’s aggregated acquisitions.

Limited property rights are valued using present-value methods prescribed by law (life expectancy tables, interest factors). The calculator provides a field for deducting the value of such encumbrances or for entering the net value already adjusted for the right. Complex rights should be valued by a professional.

• FX: Values should be converted to EUR at date of death (or the applicable statutory conversion rule).
• Credits: If a treaty or domestic law allows credit for foreign death taxes, enter the amount as a credit/offset where the tool provides it. Final credits depend on the treaty and tax authority review.

• Real estate or business valuation differs from your estimate.
• Prior gifts are re-classified or were not fully disclosed.
• Reliefs (family home, business) do not meet all statutory conditions.
• Cross-border treaty credits or FX calculations are adjusted by the tax office.

1. Run a baseline with current values and no reliefs.
2. Toggle family-home, business-property, and charitable reliefs.
3. Model prior gifts at different times to see allowance/tariff effects.
4. Test multiple heirs to compare per-person allowances and rate bands.

No. The tool provides an estimate for guidance. The binding assessment depends on statutory valuation rules, submitted evidence, and the tax office’s review. For cross-border or business cases, seek a professional calculation before filing.