Germany faces significant knowledge gaps in inheritance tax planning

A survey conducted by the research institute CIVEY on behalf of Liechtenstein Life reveals significant knowledge gaps among German citizens regarding inheritance and gift tax optimization. As Germany approaches a major wave of inheritance transfers, 69 percent of respondents are unaware that specific fund policies can be used to utilize tax allowances.

Only approximately 21 percent of those surveyed are familiar with these financial tools, such as wealth tariffs or generation insurance. The study, which surveyed 2,500 representative German citizens not yet in retirement, highlights age-related disparities: knowledge is highest among 18-to-29-year-olds at 35 percent, drops to 13 percent for the 40-to-49 age group, and rises again after age 50.

Regarding potential inheritance tax reforms, nearly half of the participants do not expect discussed changes, such as a lifetime allowance of one million euros, to benefit their personal situations. Due to these gaps, 35 percent of respondents indicated a high or very high need for professional advice concerning wealth transfer.