March 2025
Inheritance and wills
Lower estate tax (inheritance tax) for siblings
From 1 January 2027, the additional estate tax for inheritance to siblings will be removed, reducing the total tax from 36,25% to 15 %. This puts siblings on an equal footing with immediate family (such as children).
If you have previously chosen not to leave an inheritance to a sibling due to the higher tax, it may be relevant to adjust your will to ensure that your wishes are still fulfilled in the best possible way after the law change.
It can also be a good idea if you want to avoid doubts or legal issues arising later, for example if you have chosen a 70/30 arrangement where a charitable organisation is named as heir to increase the inheritance for siblings.
With the new law change, there are a number of considerations you should make in relation to your will. Read more below.
Considerations for sibling inheritance after law change
Gifts
Instead of giving gifts, you may want to consider naming a sibling as an heir. The tax on gifts to siblings has not changed, so they are still taxed as personal income for the recipient. However, Bill L123 from January 2025 proposes to include siblings in the gift circle so that the gift tax for siblings is also reduced to 15 %. The bill is in committee and has not yet been adopted.
70/30 schemes, charitable organisations
With siblings only paying 15 % in tax from 2027, the benefit of naming a charitable organisation as an heir is reduced. You should ensure that your will still reflects your wishes, and all agreements should be clear and documented, including ownership, corporate structure, future roles and succession matters.