Inheritance tax allowance for care services

The inheritance tax allowance of 20,000 euros for care services does not apply to children and other close relatives of the testator.

Up to 20,000 euros are exempt from inheritance tax if the heir has supported the deceased or cared for them free of charge. However, this allowance does not apply to children and other close relatives, as the Bavarian State Tax Office has now ruled. The tax-free allowance does not apply to heirs who are legally obliged to provide care (spouses and life partners) or maintenance (children). Even if children are not obliged to care for their parents, the legal obligation to provide maintenance is sufficient to exclude them from the inheritance tax allowance.