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The Erbschafts-Navigator wizard uses German-law decision trees. The interface is localized; underlying recommendations describe German law.

Inheritance & succession in Hessen

Erbschaftsteuer (inheritance tax), Schenkungsteuer (gift tax) and succession planning in Hessen: competent authorities, Grunderwerbsteuer (real-estate transfer tax) rate, Notar (notary) system and state-specific particularities at a glance.

Grunderwerbsteuer

6,0 %

since 01.08.2014

Notar system

Mischsystem

per BNotO

ErbSt Finanzaemter

3

specialised for inheritance tax

Inheritance tax law

Federal law

ErbStG, uniform across all states

Competent authorities in Hessen

For an inheritance event or a Schenkung in Hessen, the following offices are your contacts. The reporting obligation under § 30 ErbStG runs for 3 months from acquiring knowledge of the event.

Erbschaftsteuer-Finanzamt (tax office)

3 specialised Finanzaemter (German tax offices: Fulda, Kassel II-Hofgeismar, Wetzlar)[DE]

Competent for assessment and collection of inheritance and gift tax under § 35 ErbStG, in conjunction with the state-level competence ordinance.

Nachlassgericht (probate court)

Amtsgericht (German local court acting as Nachlassgericht / probate court) at the deceased's last domicile[DE]

Competent for opening wills, issuing certificates of inheritance and disclaimers under § 343 FamFG at the deceased's last habitual residence.

Notarkammer (chamber of notaries)

Notarkammer Frankfurt am Main (Bar of German Notaries)[DE]

Supervisory body and directory of all notaries for wills, Erbvertraege (inheritance contracts), gift contracts and real estate transfers.

Grunderwerbsteuer in Hessen: 6,0 %

The Grunderwerbsteuer in Hessen stands at 6,0 % of the purchase price or consideration (since 01.08.2014). The rate is set by the state and may deviate from rates of other Bundeslaender (range: 3.5 % in Bavaria up to 6.5 % in Brandenburg, NRW, Saarland and Schleswig-Holstein).

Relevant for succession planning: Acquisitions due to death (inheritance) and Schenkungen inter vivos are exempt from Grunderwerbsteuer under § 3 No. 2 GrEStG. Anyone transferring real estate as part of vorweggenommene Erbfolge (anticipated succession) avoids Grunderwerbsteuer. In the case of a sale below value (mixed gift), Grunderwerbsteuer applies only to the onerous portion.

Legal basis: GrEStG in conjunction with state law of Hessen. The rate may change through state legislation.

Mischsystem in Hessen

In Hessen a Mischsystem (mixed system) exists: in some regions the Nurnotariat (notary as exclusive profession) applies, in others the Anwaltsnotariat (notary and attorney in one person). Which system applies depends on the OLG district.

For succession planning this makes no substantive difference regarding notarisation duties. Fees in both cases follow the GNotKG (Court and Notary Costs Act).

Particularities of Hessen

Specifics: Hessen operates a mixed notarial system: in the OLG (Higher Regional Court) districts of Frankfurt and Kassel the Anwaltsnotariat applies, while in the OLG Wetzlar district the Nurnotariat partly still applies. The Erbschaftsteuer (German inheritance tax) Finanzamt competent for Frankfurt am Main sits in Fulda, not in Frankfurt itself. At 6.0 % Hessen is at the upper end of the Grunderwerbsteuer (German real estate transfer tax) scale.[DE]

Freibetraege (tax-free allowances) for inheritance & gift

Freibetraege apply uniformly across Germany under § 16 ErbStG and are identical in Hessen to all other Bundeslaender. They renew every 10 years (§ 14 ErbStG).

Steuerklasse I

EUR 500,000

Spouse / registered civil partner

§ 16 (1) No. 1 ErbStG

Steuerklasse I

EUR 400,000

Children and stepchildren

§ 16 (1) No. 2 ErbStG

Steuerklasse I

EUR 200,000

Grandchildren (with predeceased parents: EUR 400,000)

§ 16 (1) No. 3 ErbStG

Steuerklasse II / III

EUR 20,000

Other acquirers (siblings, nephews, third parties)

§ 16 (1) No. 4-7 ErbStG

Important deadlines

These deadlines apply nationwide, including in Hessen. Missing a deadline can have substantial legal and financial consequences.

6 weeks

Erbausschlagung (disclaimer; abroad: 6 months)

§ 1944 BGB

3 months

Reporting to competent Erbschaftsteuer-Finanzamt

§ 30 ErbStG

10 years

Renewal of Freibetraege for Schenkungen

§ 14 ErbStG

5 / 7 years

Holding period for business assets (Regel-/Optionsverschonung)

§ 13a (6) ErbStG

30 years

Limitation for evaded inheritance tax

§ 169 (2) AO

Assess your situation in Hessen

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