Familienunternehmen und die Erbschaftsteuer

In the practical guide *Family Businesses and Inheritance Tax – Fundamentals of Inheritance Tax and Planning Considerations for Optimising Business Succession* (2022), Bertram Layer and Andrea Seemann provide a systematic overview of German inheritance and gift tax law, with a particular focus on succession in family businesses. The guide is aimed at entrepreneurial families without in-depth prior knowledge of tax law and presents the complex legal provisions in a clear and practical manner. It begins by placing inheritance tax within its constitutional, historical and fiscal context.

The focus of this presentation is on the fundamental principles of taxation: tax liability, tax bands, tax allowances, tax rates and the relevant criteria for inheritance and gift tax. The valuation of different types of assets is explained in detail, particularly business assets, shares in partnerships and companies, and property. The authors discuss at length the simplified income approach, the statutory capitalisation factor and the practical implications of valuation for the tax liability. The analysis makes it clear that the valuation rules in force since the 2009 and 2016 reforms regularly result in higher taxable values and thus have a significant impact on succession planning.

Another key focus is on the tax relief provisions for business assets. The guide analyses the conditions for standard and optional tax relief, the significance of administrative assets, wage bill and retention rules, as well as the restrictions applicable to large corporate assets exceeding the €26 million threshold. Building on this, the guide sets out specific planning considerations for optimising business succession, such as by amending articles of association, utilising usufruct or pension schemes, incorporating trusts, or arranging structured asset transfers during the owner’s lifetime. Overall, this practical guide provides a sound basis for decision-making for entrepreneurial families who wish to plan their succession in a way that is tax-efficient, legally secure and geared towards the long term.