Who pays inheritance tax on houses that come into the possession of bare owners?

Questioner

My sister's husband, after his death, stipulated in a will that his second wife may continue to live in the house until her death. After her death, the house will come into the possession of his three children from a previous marriage. They are now the bare owners. The inheritance tax of the house was paid from the account that was assigned to my sister as usufructuary. I think that is an advance and the bare owners must return this amount to my sister's children upon my sister's death. Is this correct?

Lawyer

Inheritance tax concerns the interest of an heir in an estate and is usually paid by the person receiving the inheritance. In the Netherlands, inheritance tax is calculated on the value of everything a person has left behind, minus his or her debts. In the case of a home with usufruct and bare ownership, the distribution of inheritance tax depends on the provisions in the will and the inheritance law. In this case, the inheritance tax is usually paid by the usufructuary (in this case the second wife), since she receives the usufruct of the house and thus enjoys the economic value of that house. The bare owners (in this case the children from a previous marriage) only have the 'bare' ownership of the house; they do not have the right to use the house or to benefit from any rental income. So in principle it is not correct that the bare owners should pay back the inheritance tax. However, it is advisable to investigate this further by a tax advisor or lawyer, to ensure that all relevant facts and circumstances are taken into account.' ---------------- Please note! This free advice is based on limited information and may be incomplete or even incorrect for your situation. Always consult a lawyer or attorney for your further steps. Read disclaimer: https://rechtswinkel.nl/disclaimer ---------------- Call us for further assistance Stichting Rechtswinkel.nl is a national organization with students and volunteers. We may be able to help you free of charge or refer you to a reliable lawyer or legal expert. Call us during office hours on 040 2350423.