INHERITANCE TAXATION

The order in which inheritance is taxed, like all other tax matters, is determined by current legislation. In particular, this is fixed in Art. 174 of the Tax Code of Ukraine. Let's consider in more detail how inheritance taxation occurs.

What the legislation provides

When an individual receives income in the form of inherited property, he pays 2 key taxes:

• Personal income tax (this abbreviation stands for income tax for individuals);
• military collection

As for the amount of the tax rate, according to which the value of the object of inheritance is taxed, it depends on the relationship between the heir and the testator. Aspects such as:

• residency status of each of the parties;
• features of the heritage object;
• belonging of the heir to one of the specifically defined categories of citizens (a person with a disability of the 1st group, a disabled child, an orphan or a child deprived of parental care).

Thus, when determining the tax rate, a number of circumstances are taken into account. In order not to get confused in these matters on your own, you should use the help of a professional lawyer. The high-quality consultation of an experienced lawyer will greatly simplify the understanding of the problem and give an opportunity to better navigate the issues that are relevant to you.

Who can count on zero personal income tax rate

Such persons include:

• family members of the first and second degree of kinship;
• natural persons with the 1st group of disabilities, the status of an orphan, a disabled child and a child deprived of parental care.

In this case, you don't need to pay military duty either.

Inheritance taxation when the heirs are not relatives of the testator in the first and second degrees of consanguinity

When we are not talking about close relatives of the testator, personal income tax is paid at the rate of 5%. If the testator is a resident, and the heir is a non-resident, then the personal income tax rate, which is applied in such cases, reaches 18%. In addition, military duty must be paid.

What is the benefit of legal aid

Inheritance matters are complex and require professional help. The participation of a lawyer in these client requests becomes a guarantee of such advantages as:

• Competent consulting work. This frees you from independently searching for the necessary legal norms and trying to figure them out on your own.
• Quality support. With a good lawyer, you will be sure that you will prepare all the necessary documents, you will not miss important deadlines, and you will do everything necessary to effectively exercise your rights.
• Confidence and psychological comfort. Even when a person himself has learned a lot of important things about the legal norms governing inheritance, in most cases he does not have legal practice and does not know how these norms are implemented in a specific legal area. Therefore, the participation and assistance of an expert who regularly works in this field will be useful.

So apply. Professional help makes life significantly easier and also saves your time.