Immediate self-use of an inherited family home

Only in exceptional cases is the inheritance tax exemption granted for a family home if more than six months have elapsed before the heir begins to use it himself.

Spouses and children do not have to pay inheritance tax on a property if the property is used by both the testator and the heir themselves. The prerequisite, however, is that the heir begins to use the property for his or her own purposes immediately after the inheritance. The tax offices therefore like to refuse tax exemption if, in their view, self-use by the heir occurred too late.

The Federal Fiscal Court has now ruled that "without delay" within the meaning of the law means self-use without culpable hesitation, i.e. within a reasonable time after the inheritance. The Federal Fiscal Court considers a period of six months to be reasonable. In the case of a longer period, the heir must explain and substantiate when he or she decided to use the property for his or her own purposes, the reasons why it was not possible to move in earlier and why he or she is not responsible for these reasons. Circumstances within the sphere of influence of the heir, for example renovation, are not to be regarded as culpable delay only under special circumstances.