It is often thought that no more may be donated to a (grand)child than the amount exempted for gift tax. Nothing could be further from the truth. You may donate as much as you want. However, the consequence is that if you donate more than the exempted amount, gift tax is due. It can be advantageous to donate at a low rate when you are alive in order to save inheritance tax at a high rate when the time comes.
Inheritance tax can also be saved by bequeathing a certain amount to grandchildren in a will. A bequest to a grandchild is exempt from inheritance tax for a considerable amount.
The bequest to grandchildren can be paid immediately after your death.
It can also be stipulated that the grandchildren only receive the amount once their own parents have died.
This can save up to €14,000 per grandchild per grandparent couple.
For more information on grandchildren and inheritance tax and/or gift tax, please contact us. We will be happy to advise you.
pkooijman@kooijmanautar.nl
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