The case

The ruling is about a case, where an estate was divided unequally among heirs.

Source: Steuer Rekursgericht Zürich, 8. April 2024, 85.2023.6; rechtskräftig / ZStP 4/2024 page 332f f.

The commentary

In principle, heirs are bound by the order of a last will or inheritance contract. Differing agreements among heirs can be considered so-called inter-heir donations (Querschenkung) which are subject to taxes. If heirs agree, this can be relevant and acceptable for inheritance tax law if it helps remove any serious doubts about the inheritance law situation on condition that the agreement does not obviously help avoid taxes.

Each respective part of the estate that an heir obtains is subject to taxes and it is irrelevant whether it is e.g. real estate or cash.

Real estate abroad is not subject to taxes in the cantons though it is consulted to determine the rate. If heirs take over property aboad, they remain subject to taxes within their part of the inheritance.

The rules listed above refer to §§ 3 Abs. 1 und 2, 7 lit. a, 8 Abs. 1 of Erbschafts- und Schenkungssteuergesetzes (ESchG) of the canton of Zurich.

This publication has been prepared solely for information purposes and is does not constitute a recommendation, a solicitation, or an offer. The information on which this publication is based has been obtained from sources that we believe to be reliable and in good faith, but we have not independently verified such information and no representation or warranty, express or implied, is made as to its accuracy. All expressions of opinion are made as of the date of publication and may be subject to change without notice. k-flash and all related affiliates accepts no liability or responsibility whatsoever for any consequential loss of any kind arising out of the use of this publication or any part of its contents. The use of this publication should not be regarded as a substitute for the exercise by the recipient of his or her own judgment. This publication is not directed to any person in any jurisdictions that prohibit such publication.