Inheritance Estate Gift Matrix

Inheritance / Estate / Gift Tax Matrix v0.1

General reference only. This skill is general tax/accounting reference material for AI-assisted workflows. It has not been reviewed for any specific person's facts, documents, elections, deadlines, residency, filing status, or local procedures. Do not rely on it to file, pay, amend, or take a tax position without review by a qualified professional in the relevant jurisdiction.

What this file is

This file is a content skill that loads on top of cross-border-workflow-base. It maps the world's principal transfer taxes on death and gift, as of mid-2025.

Tax year coverage. Current for calendar 2025, reflecting:

• US OBBBA (P.L. 119-21, July 2025) — confirms unified gift / estate / GST exemption at USD 13.99m (2025), rising to ~USD 15m per OBBBA's permanent extension of TCJA increase
• UK IHT — frozen nil-rate band at GBP 325,000 and residence nil-rate band at GBP 175,000 through April 2030; domicile concept replaced by long-term residence from 6 April 2025 under FA 2025
• German Erbschaftsteuer — Bundesfinanzhof July 2024 ruling on business property relief constitutionality; rates and brackets per ErbStG as last amended
• French droits de succession — unchanged rates; Pacte Dutreil at 75% reduction
• Spanish ISD — strong regional variation; some autonomous communities (Andalucía, Madrid) effectively reduce to 0% via rebates; national surcharge mechanics
• Italian successioni — generous spouse / child exemptions; ongoing parliamentary discussion of rate increases

The reviewer is the customer of this output. Cross-border succession is one of the most error-prone areas of practice. Every output must be reviewed by a credentialed local tax / estate planning practitioner before any return is filed.

Section 1 — Scope statement

This skill covers:

• Inheritance tax (paid by beneficiary) — German, French, Spanish, Italian, Belgian, Dutch, Japanese model
• Estate tax (paid by estate) — US, UK model
• Gift tax — unified with estate/inheritance (US) or separate (FR, DE)
• Generation-Skipping Transfer (GST) tax — US-specific
• Cross-border situs rules and double taxation treaties (limited bilateral coverage)

This skill does NOT cover:

• Probate procedure and grant-of-representation mechanics
• Trust administration tax beyond a reference
• Will drafting and conflicts of law (e.g., EU Succession Regulation 650/2012 forum rules)
• Income tax on inherited assets post-death — see country income tax skills

Section 2 — United States (federal estate, gift, GST)

2.1 Unified exemption (2025)

[T1] Per OBBBA (P.L. 119-21):

• Basic exclusion amount (BEA): USD 13,990,000 per individual (2025)
• Rising to ~USD 15,000,000 under OBBBA's permanent extension (from 2026)
• Married couple portability: surviving spouse can use deceased spouse's unused exclusion (DSUE)
• Generation-skipping transfer (GST) exemption: same amount

2.2 Rate

[T1] Flat top rate 40% above the exemption (graduated brackets 18-40% but most transfers hit the top rate due to lifetime exhaustion of lower brackets via prior gifts).

2.3 Annual gift exclusion

• USD 19,000 per donor per donee for 2025 (indexed)
• USD 190,000 spousal annual exclusion for non-US-citizen spouse (2025; raised from USD 175k)
• Educational and medical exclusion: unlimited if paid directly to institution

2.4 Marital and charitable deductions

• Unlimited marital deduction for US citizen spouse
• Unlimited charitable deduction for qualified §501(c)(3) recipients

2.5 Non-US residents (estate)

[T1] Non-resident aliens (NRAs):

• US-situs assets subject to estate tax (real estate in US, US-domiciled corporation shares including foreign corporation US-business income, tangible personal property in US)
• Exemption: only USD 60,000 (treaty may increase)
• Top rate 40%
• Treaties exist with: Australia, Austria, Canada (under §2056A protocol), Denmark, Finland, France, Germany, Greece, Ireland, Italy, Japan, Netherlands, Norway, South Africa, Sweden, Switzerland, UK

2.6 Filing

• Form 706 — Estate
• Form 706-NA — Non-Resident Alien Estate
• Form 709 — Gift
• Filing deadline: 9 months from date of death (estate); 15 April following year of gift
• DSUE election: must be made on a Form 706 even if no tax due

2.7 Step-up in basis (income tax interaction)

[T1] §1014: inherited assets receive a step-up in basis to FMV at date of death. Critical for capital gains planning. Note: some carryover basis rules apply where modified estate tax regime elected.

Section 3 — United Kingdom — Inheritance Tax (IHT)

3.1 Major reform: domicile → long-term residence (6 April 2025)

[T1] FA 2025 replaced domicile with a long-term residence (LTR) test:

• Long-term resident: UK tax resident in at least 10 of preceding 20 years
• Long-term residents are subject to IHT on worldwide assets for 10 years after losing LTR status
• Non-LTR individuals: IHT on UK-situs assets only

Previously, non-UK domiciled individuals could shelter foreign assets via "excluded property trusts" — these largely lose their effectiveness for individuals settling after 6 April 2025.

3.2 Rates and exemptions

[T1]

• Nil-rate band (NRB): GBP 325,000 (frozen through April 2030)
• Residence nil-rate band (RNRB): GBP 175,000 for qualifying residential property passing to direct descendants (tapered above estates of GBP 2m)
• Spousal exemption: unlimited (UK-domiciled or LTR spouse); GBP 325,000 limit for non-LTR/non-domiciled spouses
• Charitable exemption: unlimited
• Standard rate: 40% above NRB (and RNRB) — reduced to 36% if 10%+ of net estate goes to charity
• Lifetime gift rate: 20% (if chargeable lifetime transfer); 40% on death within 7 years subject to taper (the "7-year rule")

3.3 Reliefs

• Agricultural Property Relief (APR): 100% for owner-occupied farmland (50% for tenanted); post-April 2026 cap of GBP 1m of combined APR + BPR before the rate halves
• Business Property Relief (BPR): 100% for unquoted trading business shares; 50% for quoted controlling shareholdings; same GBP 1m cap from April 2026
• Quick succession relief: tapered for transfers within 5 years

3.4 Filing

• Form IHT400 (estate exceeding NRB)
• Form IHT205 (smaller estates)
• IHT due 6 months from end of month of death
• Form C5 for Scotland confirmation

Section 4 — Germany — Erbschaftsteuer / Schenkungsteuer

4.1 Three classes of beneficiary

[T1] ErbStG §15:

4.2 Personal exemptions

[T1] §16 ErbStG:

Per donor per beneficiary; renews every 10 years.

4.3 Rates

[T1] §19 ErbStG — graduated by amount AND class:

4.4 Business property relief (§§13a, 13b ErbStG)

[T1] Verschonungsabschlag (relief deduction):

• 85% standard relief for qualifying business assets (Regelverschonung)
• 100% optional relief (Optionsverschonung) if administrative-asset ratio ≤ 20%
• Holding-period and payroll requirements (5 years for 85%; 7 years for 100%)
• BFH 27 May 2024: confirmed need for partial restriction on company-size grounds; transitional rules pending

4.5 Filing

• Erbschaftsteuererklärung due 3 months after notification (Finanzamt typically requests within 4-6 months of death)
• Schenkungsteuererklärung due 3 months after gift becomes known to Finanzamt

Section 5 — France — Droits de succession / donation

5.1 Relationship-based rates

[T1] CGI Article 777:

Spouse / PACS partner: 100% exempt on death.

Children, parents (each child / parent has separate allowance + rates):

Siblings: 35% to EUR 24,430; 45% above.

Nieces/nephews: 55%.

Cousins or unrelated: 60%.

5.2 Allowances

• Spouse / PACS: 100% on death; EUR 80,724 on lifetime gift
• Children, parents: EUR 100,000 per parent-to-child relationship; renews every 15 years
• Grandchildren: EUR 31,865 per donor; renews every 15 years
• Disabled persons: additional EUR 159,325
• Siblings: EUR 15,932 (life-living-together additional rules)
• Other relatives / unrelated: limited

5.3 Pacte Dutreil (CGI Article 787 B)

[T1] 75% reduction on the taxable value of qualifying business shares:

• 2-year prior commitment to retain shares (held collectively)
• 4-year individual commitment after transmission
• Family member must continue an executive function for 3 years
• Reduces effective French succession tax on family businesses by 75%

5.4 Filing

• Déclaration de succession due 6 months from death (12 months if deceased died abroad)
• Submitted to local Service de l'enregistrement
• Payment terms: 5-10 years installment for family businesses

Section 6 — Spain — Impuesto sobre Sucesiones y Donaciones (ISD)

6.1 Highly variable by autonomous community

[T1] ISD is regulated nationally (Ley 29/1987) but administered by each Comunidad Autónoma, which can modify allowances, rates, and rebates. Some autonomous communities effectively eliminate ISD via 99-100% rebates (Madrid, Andalucía, Murcia, Cantabria for Group I/II); others retain full national rates.

6.2 National default schedule

[T1] Four groups of relationship:

[T1] National default allowances (modified by autonomous communities):

• Group I: EUR 15,956 + EUR 3,990 per year < 21 (max EUR 47,858)
• Group II: EUR 15,956
• Group III: EUR 7,993
• Group IV: 0
• Disabled persons: EUR 47,859 (≥33% disability) or EUR 150,253 (≥65% disability)

[T1] National default rate schedule (CC: 7.65% to 34% with multipliers by Group; effective top rate ~81.6% for Group IV taxpayers).

6.3 Major reliefs

• Business inheritance: 95% reduction (national) when relevant inheritance taxes apply; conditional on continuation
• Habitual residence: 95% reduction up to certain limits
• Family operations: pacto sucesorio (heredamientos) in Cataluña and Balearic Islands receives favorable treatment

6.4 Regional examples (illustrative; verify current law)

6.5 Filing

• Model 660 (Declaración) and Model 650 (Autoliquidación) of the relevant CCAA
• 6 months from death (extendable 6 more months)

Section 7 — Italy — Imposta sulle successioni

7.1 Generous spouse / child exemptions

[T1] D.Lgs. 346/1990:

• Spouse and direct line (children, parents): EUR 1,000,000 exemption each
• Siblings: EUR 100,000 each
• Other relatives within 4th degree: 0 exemption
• Disabled beneficiaries: EUR 1,500,000

7.2 Rates

7.3 Filing

• Dichiarazione di successione due 12 months from death
• Asset-by-asset valuation with cadastral values for real estate; FMV for movable
• Periodic parliamentary discussion of rate increases / threshold reductions

Section 8 — Belgium, Netherlands, Japan, Denmark, Switzerland

8.1 Belgium — three regions

[T1] Inheritance tax is regional (Flanders, Wallonia, Brussels-Capital). Rates vary materially.

[T1] Flanders direct-line example:

• 3% to EUR 50,000
• 9% from EUR 50,000 to 250,000
• 27% above EUR 250,000
• Spouse exemption for movable property: EUR 50,000

8.2 Netherlands

[T1] Erfbelasting:

• Spouse exemption: EUR 765,000 (2025, indexed)
• Children: EUR 25,000+ depending on age/disability
• Rates: 10% / 20% (partner & children); 18% / 36% (others to second-degree); 30% / 40% (other)

8.3 Japan

[T1] Inheritance tax (相続税 Sōzokuzei) — Inheritance Tax Act:

• Basic exemption: JPY 30,000,000 + (statutory heirs × 6,000,000)
• Rates: 10% to 55% (progressive, graduated by heir's share)
• Worldwide assets if heir is Japan-resident for ≥ 10 of preceding 15 years

8.4 Denmark

[T1] Bo- og gaveafgift:

• Spouse exemption: 100% (boafgift)
• Children: 15% above DKK 333,100 (2025)
• Other: 36.25%
• 15% gaveafgift on inter-vivos gifts above DKK 76,800

8.5 Switzerland

[T1] Cantonal/municipal — federal level no IHT/gift tax. Most cantons exempt direct descendants and spouses. Rates for unrelated persons vary (Schaffhausen, Lucerne historically high; Schwyz, Obwalden, Nidwalden no IHT for direct line).

Section 9 — Other notable

Section 10 — Cross-border situs and double taxation

10.1 Situs rules (general)

[T1] Most jurisdictions tax:

• Worldwide assets if the deceased was a tax/domicile resident
• Local-situs assets only if non-resident/non-domiciled
• Real estate ALWAYS at situs (regardless of deceased's residence) per most treaty practice

10.2 Common situs definitions

10.3 Double taxation treaties

[T1] Bilateral estate/inheritance tax treaties exist between:

• US with: Australia, Austria, Canada (limited), Denmark, Finland, France, Germany, Greece, Ireland, Italy, Japan, Netherlands, Norway, South Africa, Sweden, Switzerland, UK
• UK with: France, Ireland, Italy, India, Netherlands, Pakistan, South Africa, Sweden, Switzerland, US
• France with: Algeria, Austria, Bahrain, Belgium, Cameroon, Canada (Quebec only), Italy, Lebanon, Mauritius, Monaco, US, UK
• Germany with: Denmark, France, Greece, Sweden, Switzerland, US

[T1] Where no treaty, unilateral relief is usually available (foreign tax credit on the same asset class).

10.4 EU Succession Regulation 650/2012

Does NOT cover tax. Governs:

• Applicable law (residence at death by default; election possible to nationality law)
• Forum (residence at death)
• Recognition of grants
• European Certificate of Succession

Tax remains national.

Section 11 — Output specification

The reviewer brief must include:

1. Decedent / donor profile — residence, citizenship, domicile/LTR status, prior gift history
2. Asset inventory by situs with valuation methodology and supporting documentation
3. Beneficiary inventory with relationship classification per jurisdiction
4. Exemption / allowance schedule per applicable jurisdiction
5. Relief schedule — Agricultural Property Relief, Business Property Relief, Pacte Dutreil, German Verschonung, US marital deduction
6. Tax computation per jurisdiction
7. Double taxation analysis — credits available, treaty article references
8. Filing deadlines and forms per jurisdiction
9. Step-up in basis analysis for US-citizen beneficiaries (income tax consequence)
10. Reviewer questions — open items flagged as [T2] or [T3]

Section 12 — Self-checks

• Domicile / LTR / residence tested per each jurisdiction's specific definition
• Asset situs determined per each jurisdiction's rules, not assumed by analogy
• Relationship classification per jurisdiction (Class I-IV in DE; Group I-IV in ES)
• Exemptions per jurisdiction applied to net not gross
• Business property reliefs verified for qualifying conditions (active business, holding period, payroll)
• Charitable and spousal deductions confirmed
• Treaty foreign tax credits applied where bilateral treaty exists
• Filing forms and deadlines per jurisdiction plotted
• US step-up basis recorded for beneficiary income tax planning
• Output flags every [T2]/[T3] item for reviewer judgement

Section 13 — Prohibitions

• Do not assume a country exempts inheritance because there is "no estate tax" — many countries instead tax inherited gains via income tax (Canada deemed disposition; Australia CGT on death).
• Do not apply pre-FA-2025 UK domicile rules to FY 2025/26 cases — long-term residence applies from 6 April 2025.
• Do not treat Spanish ISD as eliminated nationally because Madrid exempts it — regional variation is the rule, not the exception.
• Do not claim US estate tax exemption of USD 13.99m for a non-resident alien — NRA exemption is only USD 60k (treaty-modifiable).
• Do not apply Pacte Dutreil or German Verschonung without confirming the holding-period and payroll commitments are sustainable post-transmission.

Section 14 — Disclaimer

This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Cross-border succession is highly fact-specific and irreversibly affects family wealth. Every output must be reviewed and signed off by credentialed estate planning practitioners in each affected jurisdiction before any return is filed.

The most up-to-date, verified version of this skill is maintained at openaccountants.com.

Source: OpenAccountants — open tax Guides for AI, reviewed by named CPAs/CAs/EAs. Quality: source-cited draft. For always-current figures and named-accountant backing, connect the OpenAccountants MCP server (openaccountants-mcp).