Which value to use?
For inheritance tax you use the WOZ value of the home. You may choose:
- the WOZ value for the year of death;
- or the WOZ value for the year following death.
Usually one of the two is more advantageous. In a falling market choose the following year; in a rising market often the year of death.
Request the WOZ value from the municipality where the property is located. Keep the WOZ assessment with your filing as proof.
Deducting the mortgage
The outstanding mortgage on the date of death is deducted from the value of the home. What remains belongs to the estate. Example:
- WOZ value: 350,000 EUR
- Mortgage: 200,000 EUR
- Net to estate: 150,000 EUR
Mortgage life insurance
Many mortgages are linked to a mortgage life insurance that pays off some or all of the mortgage on death. The payout to the bank reduces the mortgage debt. Sometimes the beneficiary is the partner or an heir, in which case the payout goes to them and is taxable.
Transferring the home to the heirs
To transfer the home to the heirs you need a notarial deed (deed of distribution). The kadaster only works with notarial deeds. Budget 700 to 1,500 EUR notary plus the kadaster registration.
Selling the home
If the heirs prefer to sell, they can do so directly from the estate without first transferring titles. The notary records the sale in the names of all heirs jointly and the proceeds are then divided.
Note: for inheritance tax the WOZ value still counts, not the sale price. Selling below WOZ does not lower your tax assessment.
Tip: occupied or empty?
A home occupied by the deceased on the date of death is sometimes valued at a lower "leegwaarderatio" if the heir does not occupy or rent it out. This is technical; let a tax specialist evaluate.