What is more beneficial for the recipient: gift agreement or inheritance

When receiving an inheritance from a relative in the form of cash, property, shares and other objects, it is worth very carefully and scrupulously studying the issue of taxation applied or not applied to the heir. In this case, it is important to know whether you have to pay inheritance tax , what is the deadline for paying it, and whether you can count on benefits.

Inheritance tax - the essence

According to the current tax legislation of Russia, most of the income and receipts in the property of citizens are subject to tax. Inheritance implies the transfer of funds and an object of property into the ownership of the heir, who was responsible for paying inheritance taxes. At the same time, the amount of tax directly depends on the liquid value of the property.

However, due to the withdrawal of property by wealthy citizens to countries with preferential tax rates, and difficulties in paying taxes for citizens with average incomes, the inheritance tax under a will was abolished. For wealthy citizens, the way to avoid tax losses was to move property to freer countries or zones, and for average citizens, receiving an inheritance undermined their financial situation due to high tax rates. So, the tax on bequeathed inheritance in relation to money, real estate, transport, and material assets has been abolished.

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When receiving a bequeathed inheritance, payment of a state fee upon entry into the inheritance is mandatory.

Previously (before July 1, 2005), it was necessary to pay inheritance tax, which was calculated based on the proximity of the family relationship. Heirs paid tax depending on the order (closeness of family ties): first, parents and children, the tax rate for whom was 5% of the value of the object of inheritance. Then - brother, sister, grandmother and grandfather, at a tax rate of 10%. In the third stage, heirs were those who did not belong to the first two groups, and the inheritance tax rate was 20%. The regulation and collection of the tax took place on the basis of instructions derived from various regulatory legal acts (RLA).

Please note that currently the term “inheritance tax” is used to mean payment of state duty. Legislative regulation of its payment is presented in Chapter 63 of the Civil Code.

Concept and basic principles

In accordance with Art. 1137 Civil Code of the Russian Federation testamentary refusal

is an obligation of the heir (heirs) of a property nature, established by the testator, performed at the expense of the inherited property in favor of one or more persons (legatees) who acquire the right to demand the fulfillment of this obligation (testamentary refusal).

A testamentary refusal must be established in the will.

The contents of the will may be limited to the testamentary refusal, i.e. imposing an obligation on a specific heir (heirs) to transfer part of the inherited property to a third party specified in the will.

Subject of testamentary refusal

among other things, in accordance with paragraph 2 of Art.
1137 of the Civil Code of the Russian Federation there may be a transfer
of an item included in
the inheritance
to the legatee
into ownership.
Clause 4 of Art. 1137 the legatee has the right to receive a testamentary legacy

, which is valid for 3 years from the date of opening of the inheritance.

The obligation to execute a testamentary refusal lies with the heir

, who, in accordance with the will, is entrusted with a testamentary refusal
within the limits of the inherited property transferred to him
minus the debts of the testator attributable to him (clause 1 of Article 1138 of the Civil Code of the Russian Federation).

Inheritance tax not under a will

A will is a document where the owner of the property gives instructions regarding the transfer of property into the ownership of other citizens after his death. Inheritance of property not by will presupposes inheritance by law. This happens in the following cases:

• no will;
• the will does not indicate all the property;
• the will is invalid;
• the will indicates the heirs deprived of inheritance;
• no heirs;
• refusal of inheritance;
• other special cases.

For inheritance by law, the main reason for transferring ownership of an inheritance is a family connection with the deceased. According to the Civil Code of the Russian Federation, the order of inheritance is established on the basis of this characteristic. At the same time, initially the right of ownership extends to the heirs of the first stage. In their absence, disinheritance, court decision, refusal of inheritance, the right of inheritance passes to the second-order heirs, and so on.

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In the absence of a will, or when the heir died before the opening of the will, inheritance occurs by right of representation in the order of priority. Also pay attention to the circle of persons who have a priority right to inheritance by law, specified in Art. 1149 of the Civil Code (parents and children of disabled age, dependents).

Do I need to pay tax when receiving an inheritance not according to a will?

There is no obligation to pay tax on property inherited not by will - regardless of the basis (court decision, inheritance by law), payment is not provided. The only thing is that you will have to pay for the services of a notary for issuing a certificate and notarial acts. The amount of the state duty is established in Art. 333.24 of the Tax Code of the Russian Federation, the legal successor must pay no more than 0.6% of the value of the accepted property for the issuance of documents.

Refusal or commitment?

Paying attention to testamentary refusal and testamentary assignment, one cannot fail to note their conceptual similarity. Thus, in paragraph 2 of Article 1139 of the Civil Code of the Russian Federation it is directly stated that the provisions governing actions arising during the execution of a testamentary refusal are respectively applied to a testamentary assignment, the subject of which is actions of a property nature. However, it is also necessary to mention that the main and apparently the only distinguishing features between these two concepts are:

• generally beneficial purposefulness of testamentary assignment (clause 1 of Article 1139 of the Civil Code of the Russian Federation);
• In addition to the heir, the executor of a will may also be the executor of the will (clause 1 of Article 1139 of the Civil Code of the Russian Federation and clause 4 of clause 1 of Article 1135 of the Civil Code of the Russian Federation).

Since testamentary assignment, as stated above, represents a generally beneficial and not personal purpose, it seems that consideration of this concept (testamentary assignment) is not relevant for us (yet).

In this regard, let us dwell on such a category in inheritance law as testamentary refusal.

Inheritance tax under a will

A will can be drawn up with the right to transfer property into the ownership of individuals, legal entities and the state. Let's consider the case of inheritance by individuals: a citizen may be a relative or not have a relationship. The division of property into shares is established by the owner independently.

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As already said, the concept of inheritance tax does not apply to inherited property. Only state duty is applied at the rate of: 0.3% for heirs of the 1st and 2nd stages, 0.6% for other heirs (Article 217). These duty rates also apply in case of inheritance not by will, for various types of property.

For certain categories of heirs, there is an exemption from paying state duty when receiving an inheritance. For others, upon receipt of an inheritance, an obligation arises to pay tax depending on the type of property within the time limits specified by law.

Do I need to pay tax when receiving an inheritance under a will?

There is also no need to pay tax when entering into rights under a will - it is enough to pay the state fee. Details for the transaction should be obtained from the notary who opens the inheritance case - you need to contact him within 6 months. from the moment of death of the testator, otherwise the missed period will have to be restored in court and if there are good reasons. Thus, when receiving an inheritance, you do not need to pay income tax.

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Let's consider what kind of property is subject to taxation

1. Real estate. Namely: House, apartment, land and other structures.
2. Transport, works of art, jewelry.
3. Commercial property (shares, intellectual property, including the right to receive income from it).
4. Insurance amounts, money in a pension account.
5. Money. Cash and non-cash, bank accounts, deposit and mortgage certificates.

So how much is the percentage that must be given to the state?

There are three tax rates:

• 0% of all inherited property is paid upon inheritance by persons of the first category of relationship. These are the testator's parents, husband or wife, children (including adopted ones), etc.
• 5% goes to heirs not included in the first degree group.
• 15 or 17% when inheriting from a non-resident (a person who formally resides in the territory of another state), the degree of relationship does not matter.

Inheritance

What is inheritance? This is a method of transferring property from one owner to another upon the death of the first. In other words, citizens enter into inheritance after the owner of the property dies.

Usually heirs are understood as relatives. In particular, children. But the inheritance can be written to third parties. This is not the most common phenomenon, but it does occur in practice. When is gift and inheritance tax paid? How much will you have to pay under certain circumstances?

Receiving property as a gift

The most profitable, from the point of view of the law, proposal for the transfer of property. The same Article 217 of the Tax Code of the Russian Federation exempts from tax, and you can notarize the moment the donee takes possession. But this article does not exempt from tax on transport, shared property, shares, shares, as well as real estate.

All of the above are subject to approved rates according to generally accepted charges. If the gift is distributed among close family members or other close relatives, then such taking into possession is also not subject to tax. In close relatives, the law means all members of your family (father, mother, sister, brother, grandmother, grandfather), as well as immediate relatives on the parental side (uncle, aunt, etc.).

When drawing up a gift document for relatives, you should be especially careful to avoid further misunderstandings. Cash and other movable property are not subject to taxation under a gift agreement, regardless of whether the donor and the donee are relatives.

Payment amounts

It all depends on who the citizen is. Estate tax (inheritance or gift - not so important) is paid under certain circumstances. The payment amount varies.

Thus, if the heir or donee is a citizen of the Russian Federation, he will have to pay a tax in the amount of 13% of the value of the gift/inheritance. And foreign citizens or non-residents of the country pay 30%.

Parallel expenses

What payments are assigned to legal successors besides state duty? The duty is far from being the only expense item that falls on the heirs.

Additional costs

Litigation

Registration of property rights

other expenses

If a deceased person left a mortgage, then along with the housing, the debts of the testator are transferred to the applicants. Paying off the loan may be beneficial if the market value of the home exceeds the debt. Otherwise, it will be more profitable for the heirs to renounce their property rights.

Giving is...

What is donation? A deed of gift is a way of transferring property from one person to another. In this case, the previous owner must be alive. This is a very popular method of transferring property to citizens during their lifetime.

Property gifted to a person will not be considered marital property. This is the personal property of the person for whom the gift deed is drawn up. Gift deeds can be issued to any person.

What do you need

What can a citizen need in order to correctly report and pay for the transferred property? In fact, everything is not as difficult as it seems.

The following documents must be prepared:

• will/deed of gift;
• death certificate of a citizen (if the recipient entered into an inheritance);
• documents confirming relationship (if available);
• identity card (this means a civil passport);
• extracts from home books;
• certificates from the BTI (if we are talking about real estate);
• certificate of ownership (extracts from the Unified State Register are also accepted);
• real estate cadastral passport (preferably);
• tax return (form 3-NDFL).

It's enough. It is necessary to submit the relevant documents to the Federal Tax Service at the place of registration of the citizen-recipient of the property. Next, the tax is paid within the previously specified time frame. It is recommended to keep checks and receipts in their originals at home for at least 3 years.