Moving away does not always protect against inheritance and gift tax

Relocation cases and cross-border situations bring with them a number of tax challenges for taxpayers. Those who seek advice before moving away are in a good position to avoid considerable tax disadvantages. It is important to consider not only the immediate consequences of the move, but also those that may arise some time later as a result of inheritance or gifts. In this context, taxpayers and their advisors should keep in mind the extended unlimited inheritance tax liability in their planning, the constitutionality of which was addressed by the BFH in its ruling of October 12, 2022 (II R 5/20).