This may be relevant in the context of inheritance tax. This is because, in principle, this tax is based on (the value of) the share of the estate at the time of death.
Disagreement
A case is currently being heard at the Zeeland-West-Brabant District Court case where there is a dispute between the heirs. The Roermond District Court therefore appointed a binding adviser. The adviser produced a report in which he arrived at a share of €133,693.20 per heir. He did, however, state that he had been unable to complete his work. A second adviser appointed by the court resigned from the case due to a lack of cooperation from some of the heirs.
Not divided
The Tax and Customs Administration assesses the inheritance tax (then known as ‘succession tax’) on the basis of this value. However, the party concerned in this case has only received some funds from the sale of her father’s home. In 2020, 14 years after her father’s death, the estate had still not been distributed.
The court has ruled that the daughter must, after all, pay the inheritance tax set out in the tax assessment. She did not renounce the estate. The fact that the estate was accepted subject to benefit does not alter the fact that inheritance tax is due.
The law does not allow the inheritance tax to be calculated on the basis of what the daughter actually received from the estate. Inheritance tax is based on the value of the inheritance at the time of death.
Solution
To resolve the issue, the court has referred the daughter to the civil courts. The findings of the two binding arbitrators show that this course of action has so far yielded little result.
From a tax perspective, it might still be possible to invoke the hardship clause. However, the court states that it does not have the jurisdiction to rule on this matter. The same applies to a claim for remission of inheritance tax.