In a poignant testimony broadcast on Belgian radio recently, a gay man in his 50s told the Win Win show on Radio 2 that his parents aim to disinherit him due to his sexual orientation. He questioned the legality of the situation, prompting a discussion which has wider relevance for the whole LGBTQIA+ community in Belgium.
Financial journalist Michaël Van Droogenbroeck aimed to clarify the situation on the show by saying that the law entitles every child to a minimum share of the inheritance, ensuring a fair distribution, and that, irrespective of the parents' wishes, all children are entitled to at least half of the estate, with the specific share determined by the number of children.
In the caller’s case, as one of three children, he is entitled to a third of the half, equating to 16.66% of the total estate.
Despite the caller’s concerns about his parents' tactics of giving away assets to other family members, Van Droogenbroeck noted that such manoeuvres are not foolproof.
All gifts made during the parents' lifetime are considered in calculating each child's minimum share, even if outlined in a will.
While the caller may eventually face inheritance tax, Van Droogenbroeck offers strategies to minimise the financial burden.
He suggests that individuals often resort to donating assets on their deathbed, evading inheritance tax with the lower gift tax. This entails an immediate gift tax payment or the calculated risk of surviving three years after the donation, after which no taxes apply.
Van Droogenbroeck underscored the benefits of donating movable and immovable property, such as cars or homes, as a means to reduce tax liabilities. With rates significantly lower for gift tax than inheritance tax, individuals can strategically plan to minimise financial obligations.
The journalist also introduced the concept of donating real estate in instalments, allowing for substantial tax savings. Additionally, a recent development in inheritance laws includes a friend legacy, enabling individuals to bequeath up to €15,000 to close friends or distant relatives at a favourable 3% tax rate.
In the quest for fair treatment and financial security, the caller’s story highlights the legal safeguards in place for LGBTQ+ individuals, emphasising the importance of understanding inheritance laws to overcome discrimination and secure a rightful share.
