This tax privilege is intended to ensure that the surviving spouse does not additionally have to pay inheritance tax on their notional equalisation of accrued gains on top of the loss of assets already caused by the death.
Calculating the notional accrued gain requires an independent valuation of the initial and final assets of both spouses, similar to a divorce, but with the date of death as the reference date.
In the case of separation of property or community of property, different rules apply, so the specific marriage contract should always be included in inheritance tax advice.
If separation of property was expressly agreed in the marriage contract, the tax privilege of the notional equalisation of accrued gains is entirely forfeited, whereas in the case of community of property, separate, differing rules apply.
Heirs should therefore always check whether a marriage contract exists, as its content has a direct influence on the amount of the inheritance tax assessment basis.
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