If the transferor and transferee agree on a consideration, such as a monthly annuity or care services, the present value of this obligation is first calculated according to actuarial principles.
If the property value exceeds the capitalized value of the consideration, a so-called mixed gift arises in the amount of the difference, which is proportionally subject to gift tax.
For a tax-clean structuring, a well-founded, expert-backed valuation of both sides – the property and the maintenance benefits – is essential.
A life annuity involves constant, lifelong payments, whereas a permanent burden can be adjusted in amount according to the recipient's need – both are subject to different income tax rules for the recipient.
The transferee of the property can, under certain conditions, claim the agreed maintenance payments as special expenses for tax purposes, which additionally affects the overall burden of the transfer.
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