The term "Bedarfsbewertung" derives from the fact that the value is only determined when there is a specific need, for example in the event of inheritance or a gift, unlike the ongoing unified valuation (Einheitsbewertung) under the former legal framework.
The tax assessment valuation (Bedarfsbewertung) is carried out automatically according to standardised calculation rules of the German Valuation Act (Bewertungsgesetz), without an individual inspection of the property taking place.
An individual market value appraisal, on the other hand, can take into account all property-specific particularities and serves as evidence of a lower actual value compared to the standardised tax assessment valuation (Bedarfsbewertung).
It is important to distinguish: the tax assessment valuation (Bedarfsbewertung) applies exclusively for inheritance and gift tax purposes. For a sale, the equalisation of accrued gains upon divorce, or the calculation of a compulsory portion (Pflichtteil), an individual market value appraisal is always required.
Since both values are based on different methods, they can differ significantly from one another in individual cases – confusing the two often leads to incorrect expectations among heirs or beneficiaries of a gift in practice.
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