September 28, 2012
German Inheritance Policy
In Germany, the country's laws state that domestic residents can take a €500,000 exemption on inheritances and gifts, while it restricts the exemption to €2,000 if the testator and the heir are not residing within the geographic boundaries of Germany. As a result, the European Commission (EC) referred the nation to the European Commission's Court of Justice. The commission determined that not only was the law discriminatory but also a burden on the free movement of capital. This last determination is provided for in the treaties between the European Countries.
See Taxation: Commission Refers Germany to the Court of Justice for Discriminatory Inheritance Tax Provisions, Press Release: European Commission, Sept. 27, 2012.
Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this blog to my attention.
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