A Real-Life Scenario

Basic Inheritance example

Navigating inheritance can be an emotional and complex journey, especially when it spans two countries with different legal systems, such as Germany and Thailand. This process involves more than just financial calculations—it requires meticulous coordination of legal, administrative, and personal aspects, including communication with family members and authorities.

Imagine this scenario: a woman in Thailand learns she is the sole heir to a €300,000 estate left by her beloved German partner, who had made Thailand their home. The inheritance is uncontested, but the process requires navigating German inheritance laws, handling necessary documentation, and ensuring the funds are securely transferred to Thailand.

How much of this inheritance will remain after addressing all legal, administrative, and tax obligations? Here’s a detailed breakdown.

Initial Estate Value: €300,000
Assistance Fees of Thai-German Heritage Assistance (5%, excluding VAT): €15,000
These fees cover comprehensive estate management, including securing the will, coordinating with authorities, and ensuring all legal and administrative processes are followed.

VAT on Assistance Fees (19%): €2,850
German law requires VAT to be added to the assistance fees.

Tax Advisory Costs (including VAT): €3,570
Professional fees for filing inheritance taxes and ensuring compliance with all legal requirements.

Remaining Estate After Assistance and Advisory Costs:
€300,000 - (€15,000 + €2,850) - €3,570 = €278,580

Tax-Free Allowance (Steuerklasse III): €20,000
Non-family members in Germany receive a minimal tax exemption.

Taxable Amount:
€278,580 - €20,000 = €258,580

Inheritance Tax (Steuerklasse III):
On the first €75,000: 30% = €22,500
On the remaining €183,580: 50% = €91,790
Total Tax: €22,500 + €91,790 = €114,290
Remaining Estate After Taxes:
€278,580 - €114,290 = €164,290

Bank Transfer and Administrative Costs: €2,000
This includes international transfer fees, currency conversion, and administrative charges.

Final Amount Transferred to Thailand:
€164,290 - €2,000 = €162,290

Honoring a Legacy with Care and Respect
An inheritance represents much more than financial value—it is a testament to the love and life shared between two people. While the process can be intricate, it ensures the wishes of the departed are fulfilled and their legacy preserved.

In this case, the surviving partner in Thailand can find comfort knowing that their beloved’s estate has been carefully managed and their wishes honored. With expert assistance guiding every step, they are free to focus on healing and cherishing the memory of their shared life.