till death do us part … (or not)

What happens when spouses die at the same time or shortly after each other? Do they inherit from each other? And what about inheritance tax, is it due twice? This is not only an issue for spouses but also for other family members who stand to inherit from each other like parents and children, or siblings. Simultaneous death We speak about simultaneous death when two …

Life Insurance Gifts and Joint Life Second Death.

On 1 January 2022, Wallonia aligned its inheritance tax rules relating to life insurance on those of the Flanders. The Brussels Region has just amended its legislation along the same lines. The rules are now aligned in the three regions. Among the new tax measures introduced by the Brussels-Capital Region, we would like to highlight the following: Gift of an insurance policy When a person …

The Unsung Charms of the Split Purchase

The split purchase of a property is a popular estate planning technique, but it comes with some risks. It is so popular that the taxman is watching them carefully What is the problem? The split purchase of a house or apartment is the purchase by one person of the bare ownership and the purchase by another of the usufruct of a property. Examples are : …

Belgian Real Property in a Trust

In a recent decision nr SP 22004 dated 20 June 2022, the Flemish Tax Authorities (in short “Vlabel” for Vlaamse Belastingdienst”) have clarified the taxes due upon the transfer of a Belgian property to a trust and the subsequent transfer of the property to the beneficiary. The decision related to the plan of a non-resident to transfer a Belgian property to a US living trust where the …

Registering a gift online

On 1 May 2022, the Federal Ministry of Finance published step-by-step guide to register a private gift online. Only gifts of movables A gift of real property can still not be one online or without passing before a notary. A gift of movables can be done without a notary with the Finance Ministry by paying gift tax. However, such gift will usually be done with …

Non-doms, what’s in a name

By a bizarre twist of events, while Rishi Sunak, the Chancellor of the Exchequer introduced an increase of the national insurance contributions, it came to light that his wife, Akshata Murthy has non domicile status and avoids an estimated £20 million in taxes in the United Kingdom. She is the daughter of N. R. Narayana Murthy, the founder of the Indian IT multinational Infosys, and …

TEP-talks

TEP-talks

EU officials: An Introduction to Taxes 21 April 2022 @ 18:00  The tax status of an EU official is governed by the articles 12 and 13 of the Protocol (No 7) on the Privileges and Immunities of the European Union.Article 12 states that the remuneration they receive from the European Institutions is exempt from national taxes in the Member States. The exemption of the remuneration paid by the international institutions …

Inheritance tax return: the value of real estate

When a Belgian resident dies, his next of kin have four months to file an inheritance tax return. They usually do this together, but they can do this separately as well, usually when they disagree.  In practice, they call upon a notary to help them file the inheritance tax return, but that is not obligatory, not even when the deceased owned real estate. We cannot …

Constitutional Court gives foreign (inheritance) tax credit

Banco de Espana

In a decision of 3 June 2021, the Constitutional Court ordered a major change of the Belgian inheritance tax code, or rather the three regional inheritance tax codes. The Court ruled that the inheritance tax legislation in all three regions, is discriminatory, where it grants a credit for overseas inheritance tax on foreign real property, but not for overseas inheritance tax levied on movable assets …

Flanders ends Dual Bequest Route

Yesterday the Flemish parliament introduced a tax break for “bequests to friends” and for bequests to charities. These are just the sweeteners to close the dual bequest route. The route is closed to people living in Flanders, people living in Brussels or Wallonia can still use the dual bequest. Dual bequests A dual bequest allows the testator to engage in philanthropy while reducing the inheritance …