Inheritance tax: between fairness and reality

Wealthy on paper

Many people are wealthy on paper—for example, through a house with significant equity—but have little liquid assets. In that case, inheritance tax for their children must be paid from the surviving parent's savings.

This can have a significant impact on your financial situation, especially if those savings are needed for unexpected expenses or essential home maintenance. In some cases, people even have to take out a mortgage to meet their obligations.

One way to alleviate this burden is through a supplementary bequest: a provision in the will whereby the surviving spouse receives a larger portion of the inheritance, as long as it remains within the tax-exempt threshold. This reduces the children's share of the inheritance and therefore also the immediate inheritance tax. This does not mean that the tax is avoided, but rather deferred. Upon the death of the second parent, inheritance tax is still levied, albeit on a different distribution of assets.

The interest on the children's claim can also play a role. An interest-free claim leads to lower inheritance tax now, but inflation will cause the value of the inheritance to decline in the future. A claim with interest grows in value, leading to higher inheritance tax upon the second death, but also ensures fairer compensation.

Two-step will

An alternative form of will is the two-step will, in which children only formally become heirs upon the death of both parents. This prevents tax liability upon the first death, but is sometimes perceived as emotionally difficult, as the children are legally excluded from the estate until the end of the second phase of life.

These issues illustrate that inheritance tax is more than a technical or legal regulation. It touches on issues such as family relationships, financial resilience, trust, and emotional healing. A system that offers protection must also address the diverse situations families find themselves in.

The political debate on inheritance tax should therefore not be solely about raising or lowering rates. What's needed is a fundamental reform that makes the system fairer, simpler, and more workable. Consider increasing tax exemptions for middle incomes, closing tax avoidance schemes for large estates, and offering clear and accessible options for estate planning.

Whether inheritance tax is seen as a blessing, a necessary evil, or a relic of the past, it's clear that clarity, customization, and a human touch are essential. Especially in times of loss, every citizen deserves a tax system that is fair, understandable, and feasible.

This article previously appeared in the Vijftigplus magazine: https://maypress.nl/Download/BN_Vijftig%2B_Magazine_09-2025..pdf