If I die next year, will my children have to pay taxes?

The succession is being prepared. What are the reductions to which heirs are entitled? Will they still have to pay taxes? These are the questions asked by one of MoneyVox’s readers. Find the answers here.

Question from Claudio, April 5

I gave 100,000 euros to my 3 children 2 years ago. I am 69 years old. If I die next year, will they have to pay taxes on this inheritance?

Hello Claudio and thank you for your question. In the event of death, your children actually benefit from a tax reduction height of 100,000 euros… Unfortunately this reduction extends over a period of 15 years. However, you mentioned having already given 100,000 euros to your three children two years ago. If you die within the next 13 years, your children will have to effectively pay inheritance tax on what you leave to them.

A bar per tranche will then apply:

Direct inheritance rights
Taxable portion after deductionTax rate
Up to 80725%
From 8073 1210910%
From 12110 1593215%
From 15933 55232420%
From 552325 90283830%
From 902839 180567740%
Beyond 180567745%

Inheritance taxes: calculation, reductions, payment…

Solutions in case of difficulty paying inheritance tax

Before knowing exactly what your inheritance will cost your children, you will need to establish the value of the inheritance and then its distribution. Once any reductions have been taken into account, the amount of inheritance tax is revealed. All these elements will be recorded in the inheritance declaration.

Furthermore, Claudio, be aware that your heirs will be required to call a notary if the estate includes real estate, if the amount transferred is greater than or equal to 5,000 euros or if you have drawn up a will or made a donation between spouses.

If your children and other heirs have difficulties paying inheritance tax, please note that they will be able to request a payment credit (in the form of a split payment or a deferred payment). Until now, the taxpayer and the public accountant had a single period of 4 months to provide guarantees and rule on the credit request.

A new decree stipulates that the heir who requests a credit to pay inheritance costs will receive a response from the public accountant within two months. If this request is accepted, he will benefit from 4 full months to constitute the guarantees.

Furthermore, if you have a life insurance policy, be aware that each beneficiary, within the framework of the inheritance, benefits from a total tax exemption height of 152,500 euros for payments made before the age of 70.

In the event of death, are the amounts received via life insurance taxable?

source site-96