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Asset structuring and tax efficient transfers

for private clients, entrepreneurs and investors.
Asset structuring and tax efficient transfers
transfers for private clients, entrepreneurs and investors.

Tax efficient Structuring

In Germany, the transfer of private and business assets is closely linked to questions of gift and inheritance tax. As a civil law notary in Frankfurt am Main, I help you design civil‑law structures that make optimal use of the tax framework. We see ourselves as structuring advisors working hand in hand with your tax professionals. Our focus is on tax-efficient structuring that aligns civil law documentation with tax-driven planning.

Please note: We do not provide tax advice in the sense of giving binding tax calculations. Instead, we translate tax‑driven concepts into robust civil‑law documentation and ensure that the transaction can be implemented without legal risks.

Strategic use of tax allowances

German inheritance and gift tax law provides for significant personal allowances which can be used anew every ten years. Through careful timing and structuring of transfers, it is often possible to avoid or significantly reduce inheritance and gift tax.

Cooperation with tax advisors

We implement the concepts developed by your tax advisors in robust notarial deeds. Our aim is that the civil‑law documentation reflects the intended tax effects precisely and without implementation risks. Close coordination with your tax advisor or auditor is standard practice for us, so that the legal structure exactly matches the agreed tax strategy.

Concepts

The “Güterstandsschaukel” (marital property regime shift)

A particularly efficient tool for married couples in the statutory German matrimonial property regime (Zugewinngemeinschaft – a form of deferred community of accrued gains) is the so‑called “Güterstandsschaukel”.

  • Concept: By notarizing a change of the matrimonial property regime from the statutory regime to separation of property, the accrued claim for equalization of gains becomes due and payable under German civil law.
  • Advantage: Payment of this equalization claim to the other spouse is – unlike a pure gift – exempt from inheritance and gift tax. Afterwards, the couple may switch back to the statutory regime (or a modified version) to restore their long‑term protection.

For clients from common law jurisdictions: this is a civil‑law mechanism that, if used correctly and in line with tax advice, allows substantial tax‑free transfers of wealth between spouses under German law.

The “Familienheimschaukel” (family home transfer)

The transfer of the family home used by the spouses for their own residential purposes can, under certain conditions, be exempt from gift tax. With the right structure, real estate can be shifted between spouses without consuming the personal allowance (currently EUR 500,000 between spouses).

Combining tools: gifts and succession planning

Tax‑related structuring often unfolds its full potential only when combined with other instruments:

  • Chain gifts: Targeted transfers via several individuals to benefit from allowances multiple times or more efficiently.
  • Reserved usufruct (Nießbrauch): Reduction of the taxable value of a gifted asset while maintaining the transferor’s income stream or use.
  • Business succession: Making use of special reliefs for business assets through carefully aligned provisions in the articles of association and transfer documentation.

Typical scenarios

  • High‑net‑worth individuals: Who wish to transfer assets to the next generation during their lifetime in a tax‑efficient manner.
  • Entrepreneurs: Who want to separate private assets from business assets and provide for a spouse.
  • Real estate owners: Who want to minimize inheritance tax for their children through strategic transfers.

Discuss your asset structure

Tax‑efficient structuring requires foresight and precision. We are happy to work with you and your advisors to develop a tailor‑made solution. You are welcome to visit us in our offices. We offer a discreet and confidential setting to discuss your personal asset structure.

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Dr. Andreas Hitzel, LL.M (Cambridge)

Dr. Andreas Hitzel, LL.M. (Cantab.)
Your notary in Frankfurt

Put your trust in notarial expertise, personalised advice and legally sound solutions. Dr. Andreas Hitzel will provide you with personal, reliable and forward-looking support in your important legal matters.
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Dr. Andreas Hitzel, LL.M. (Cantab.)
Holzhausenstrasse 19
60322 Frankfurt
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