A special form of charitable bequest: the gift

Do something good with your inheritance whilst you’re still alive – through a gift.

That’s what it’s all about

By making a gift, you can organise your estate whilst also seeing first-hand how it makes a positive difference. In this article, you’ll find out how a gift works, what you need to bear in mind (from a legal perspective), and what deadlines and regulations apply.
Person in yellow shirt standing beside massive rainforest tree with buttress roots in jungle water.

Article at a glance

  • A so-called ‘inter vivos’ gift is not a traditional bequest
  • With a gift, you can donate part of your estate whilst you are still alive
  • To prevent the circumvention of inheritance tax, a 10-year time limit applies to gifts in Germany
  • From a legal point of view, a gift is only deemed to have been made if no consideration is given in return
  • You can give away almost anything you own, such as your car, a flat, securities or a coin collection 
  • Donations to charitable organisations are exempt from gift tax 
  • A bequest is a special form of donation and can only be made to charitable foundations

More on the subject of bequests and charitable donations in wills

Find out about wills opens in a new tab

What does the 10-year time limit cover?

The ten-year time limit is intended to prevent the avoidance of inheritance tax. Otherwise, it would be possible simply to give away one’s estate without paying inheritance tax.

What specific regulations apply?

Gifts made more than 10 years before the testator’s death are not taken into account when calculating inheritance tax. The tax allowances can then be (once again) utilised in full in respect of the estate.

Gifts made within 10 years of death are added to the estate on a pro rata basis in accordance with the phasing-out model: for every year that has elapsed since the gift was made, 10 per cent of the value of the gift is deducted from the amount added to the estate. 

If, for example, death occurs after 5 years, 50 per cent of the value of the gift is added to the estate. 

What do you need to bear in mind when making a gift?

A gift is only considered as such if no consideration is given in return. Only where the gift is made ‘free of charge’ is it possible to qualify for tax relief or exemption under gift tax law. 

It is therefore advisable to draw up a gift deed that explicitly states that the gift is made without consideration. This ensures legal certainty and tax clarity. 

What could you give as a present?

Ultimately, anything that belongs to you can be given as a gift: 

  • Money: Whether handed over in cash, transferred via bank transfer or paid into an account – monetary gifts are flexible and straightforward.
  • Property: You can give away a house, a flat, a plot of land or even just a share in one.
  • Securities and portfolio assets: These include shares, fund units, bonds or even entire investment portfolios.
  • Company shares: If you own shares in a limited liability company (GmbH), a public limited company (AG) or any other business, you can give these away as well.
  • Movable property: As the name suggests, you can give away so-called movable property. This includes, for example, cars, art and jewellery, furniture, collections of stamps or coins, or even patents and licences. 

Important: For many assets, notarisation is required. 

What about gift tax?

Donations to charitable organisations are exempt from gift tax. 

As a donor, you can claim your gift as a special expense for tax purposes. Furthermore, you ‘ease the burden’ on your heirs by reducing the value of your estate through a gift, which can have a positive effect on inheritance tax.

For foundations only: the endowment 

A supplementary endowment is another way to get involved whilst you are still alive. It is a special form of donation and is only possible if the beneficiary is a foundation, such as Wilderness International. 

With an endowment, you are not supporting the foundation’s specific work, but rather its assets. The advantage is that your support has a lasting impact. This is because the foundation’s assets serve the central purpose of ensuring long-term and independent funding for the realisation of the foundation’s objectives. This means your donation cannot be used for any purpose other than that intended. 

Information material: Find out more about making a donation
Download