FURTHER EXPLANATION · 2 MIN READ
When might a new return be required?
An inheritance dispute may end with an agreement between those involved. That agreement does not automatically change the inheritance tax. First, it must be determined exactly what the parties are doing. Are they only establishing who was entitled to assets that were already disputed, or is someone transferring a new ownership right through the agreement?
The Flemish Tax Code requires a new return when the division of the estate changes. The general page of the Flemish Tax Administration also identifies the resolution of a dispute as a possible new fact. For a disputed right, the filing period starts on the date of the judgment or agreement. Who must file depends on who is affected by the change.
What does the decision of 5 November say?
The published advance decision examined one specific draft agreement. For that case, the Flemish Tax Administration accepted that the agreement only identified who was entitled to disputed assets from the estate. Two conditions were decisive: the agreement concerned assets that were genuinely disputed, and those assets belonged to the estate.
Because those conditions were met according to the facts provided, a new return had to be filed and the inheritance tax would be recalculated. The decision did not determine the actual amounts. That calculation belongs to the later processing of the return. The decision also applies only to the facts described and only to inheritance tax.
One general example
As a general example, suppose two heirs disagree about who is entitled to a bank balance that is already part of the estate. Their agreement only determines which share each person inherits. This may require a new return and recalculation. It is a possibility, not an automatic right or result for every case.
If, under the same agreement, one party also gives a share of a home to someone who previously had no inheritance right to it, that part may be an actual transfer of ownership. Registration tax may then apply to real estate. One document can therefore have different tax consequences. The title of the agreement is not decisive; its content and the facts are.
What can you prepare in practical terms?
Bring the original inheritance tax return, the assessment notices, the draft or signed agreement, and a list of the assets that were disputed. For each asset, note why it was disputed and which right each party claims before and after the agreement. Also keep the judgment or correspondence showing the dispute.
Notariaat Wellens can compare these documents and explain which part only establishes rights and which part may transfer ownership. It can then be prepared who will file a new return and which changed information belongs in it. The office cannot promise in advance what amount the tax authority will calculate, but it can help ensure that a necessary condition or separate transfer is not overlooked.