Is the value of a property at the time of deceased used for splitting inheritence or is it the value of the property when sold a later date?
-
The true value of a property is what it can be sold for.– Jon CusterCommented May 31, 2023 at 14:54
-
I suspect that the estate is divided based upon the aggregate amount of funds produced upon liquidation of the estate unless distributions are made in-kind, but don't know and defer to those who do know. It could also depend upon whether universal succession is opted for or not.– ohwillekeCommented May 31, 2023 at 20:22
-
@RohitGupta no answers in comments. Make it a real answer, then we can vote on it.– TrishCommented Jun 1, 2023 at 16:59
Add a comment
|
2 Answers
I only know the relevant law in germany but strongly suspect the law is the same or very similar in Belgium.
The relevant date for the value of an inheritance is the day of the death. For all items in the inheritance the value on that day needs to be estimated and this value is used both for computing an inheritance tax and for computing the size of the inheritance for the different heirs.
For real estate there should be some formula that uses a square meter price from some official source to compute the value (in German this is called 'Bodenrichtwert' and can be found for example here). Whether you can realize more or less than this price in an actual sale later on is not relevant for the inheritance.
If there is no testament the heirs need to agree amonst each other who gets what. Their respective shares in total value are computed based on the value at the time of death.
-
For real estate sold later, it is typical that the land is owned by all heirs in parts and that the realized value of the sale then is distributed according to the parts they own. E.g. a wife and two children inherit, and due to how it is set up in the will the wife owns 50% and the children 25% each, then a sale of the land distributes the resulting money accordingly.– TrishCommented Jun 1, 2023 at 14:37
-
1@Trish Yes, if you split the house in the inheritance. If there is more in the inheritance you could also distribute differentely, say the wife gets the house, the kids each get some stocks and cash. Everyone gets there respective share in value according to the value of the inheritance. If the wife sells the house, the sale price will be irrelevant. The question is whether you sell first and then split or split first and then sell.– quaragueCommented Jun 1, 2023 at 16:56
-
German law is indeed likely to be fairly similar to Belgium's. How are the profits or losses handled if the sale price is different and the assets are not distributed in kind? Does it matter if universal succession is elected or not? Commented Jun 2, 2023 at 20:21
I am in New Zealand. My answer is based on my experience.
My parents-in-law died not so long ago. To figure out the value of their house, the lawyer said that the house would have to be sold. So, the trustees wanted to sell the house.
But I wanted to buy it for sentimental reasons for my wife. I asked the beneficiaries to select a valuer. I offered them the price from the valuation less 2% (agent fees). And it was accepted.
Note that this was for the purpose of splitting the value of the house. Of course, the Tax department would probably take the value at the time of death. But there are no death duties in NZ.
-
FWIW, since NZ's system is rooted in the common law legal tradition for probate and inheritance, while Belgium is rooted in a very different civil law legal system of probate and inheritance, I'm not confident that NZ law provides much guidance in Belgium. Commented Jun 2, 2023 at 20:19