Inheritance tax liability of a claim to a compulsory portion

An inherited claim to a compulsory portion is subject to inheritance tax even if the testator himself never asserted the claim to a compulsory portion.

Because a claim to a compulsory portion is inheritable, it is part of the decedent's estate and is therefore also subject to inheritance tax. The tax is due on the death of the testator, regardless of whether the heir actually asserts the claim. According to a ruling by the Federal Fiscal Court, the situation would be different for the testator himself: For the beneficiary of the compulsory portion, inheritance tax is not due until the claim is asserted. In contrast to his own heir, the testator can therefore avoid inheritance tax on his claim to a compulsory portion by waiving his right to assert it.