Tax-free allowance for the child of a parent deemed to be deceased under civil law

January 17, 2025

In the proceedings before the BFH (II R 13\/22), it had to be decided whether the tax-free amount of EUR 400,000 can also be granted to the grandchild of the deceased. If the child of the deceased - i.e. the parent of the grandchild - has died, the grandchild is entitled to this allowance.

However, according to the BFH ruling of 31 July 2024, this does not apply if the child of the deceased simply waives his or her statutory share of the inheritance. In this respect, inheritance tax law does not follow the fiction of civil law.