Gift to children
Parents transfer a house or flat and want to know what value they are passing on.
Gift · lifetime succession · family
Property valuation for gifts and transfers
A transfer within the family is quickly notarised. Even so, the value should be determined properly, so that everyone can still follow it years later – with or without usufruct and a right of residence.
Jens Krüger · Let’s talk: +49 172 868 5666
Anyone transferring a property during their lifetime to children, a spouse or other relatives needs a clear economic basis: what is the property worth – and how do reserved rights such as usufruct or a right of residence affect it? An independent expert valuation makes the value transparent for everyone involved.
Handled personally · short-form valuation from €1,299 · full market value report from €2,599
Prices incl. VAT for flats and detached and two-family houses with up to 160 m² of living area under normal valuation conditions. Rights such as usufruct or a right of residence can involve additional work; you receive the specific price before the instruction.
When is a property value needed for a gift?
Lifetime succession
Assets are arranged during the owner’s lifetime. The value at the time of the transfer is documented.
Transfer between spouses
Within a marriage, too, a clear value basis can be important for decisions about assets.
Equalisation between siblings
If one child receives the property, the others should be taken into account on a shared basis.
Transfer with consideration
Reserved rights, payments or care obligations: the property value is the economic starting figure.
Wealth planning
Even before the decision, an objective value helps to compare options such as transferring, holding or selling.
Important:
The property valuation provides the value as an economic basis. The contractual structure of the transfer and the legal and tax assessment remain matters for the notary, lawyer and tax adviser.
Usufruct and right of residence: how reserved rights affect value
In transfers within the family, the previous owners often reserve a right: usufruct (Nießbrauch), allowing them to continue to use or let the property, or a right of residence (Wohnungsrecht) in individual rooms or the whole home. As long as such a right exists, the new owner can only use the property to a limited extent. This affects its value.
How much depends on the individual case, including:
- Type and scope of the right: usufruct over the whole property or a right of residence in individual rooms.
- Duration: for lifelong rights, in particular the age and statistical life expectancy of the beneficiary.
- Use or income value: what the use of the property is worth economically.
- Allocation of costs: who bears running costs, maintenance and repairs.
Depending on the task, I value the unencumbered property, the property encumbered with the right or the right itself. What is needed for your question is clarified before the instruction.
Further reading: right of residence and usufruct in property value →
When several children are to be provided for
If one child receives the property, the question often arises of how the others are to be taken into account. A value that everyone can follow is the objective basis for this. This applies especially when the transfer involves rights or consideration.
Even years later, it may matter what the property was worth at the time of the transfer, for example when the estate is divided. A valuation prepared at the time documents this value. Whether and how it is to be taken into account legally is for your lawyer or notary to assess.
If the transfer took place some time ago, the value can also be determined retrospectively as at that date. What counts then are the market conditions and the condition of the property at that time.
Valuation report or short-form valuation for gifts and transfers?
Full market value report
from €2,599
When the value also needs to be documented comprehensively for third parties, for example because several children are involved or reserved rights have to be taken into account.
Short-form valuation
from €1,299
When everyone involved agrees and an inspected, compactly documented value estimate is enough for the joint decision.
Market value indication
from €599
For a first orientation without a site inspection, before you plan the transfer with your notary or tax adviser.
Which form suits your purpose is clarified before the instruction. All prices at a glance.
Valuation, contract drafting and tax: who does what?
- Expert valuation: I determine the value of the property and, where required, the effect of reserved rights.
- Contract and notarisation: the notary drafts and notarises the transfer itself; legal questions are clarified by your lawyer.
- Tax: questions on gift tax are assessed by your tax adviser.
Whether a valuation is suitable for a particular legal or tax purpose is clarified before the instruction.
How the valuation works
- Enquiry: property, location, parties involved and planned rights or consideration.
- Agreement: purpose, valuation date, scope of service and fixed price before the instruction.
- Site inspection: personal inspection (for the short-form valuation and full market value report).
- Result: written valuation in the agreed scope, including answers to follow-up questions.
Helpful documents include the land register extract, cadastral map, floor plans, floor area details, information on the year of construction and modernisation, leases for let properties and – if available – the draft transfer agreement with the intended rights.
Frequently asked questions about property valuation for gifts
Do I need a full market value report for a gift?
Not always. If the value serves an amicable decision within the family, a short-form valuation may be enough. If it needs to be documented comprehensively for third parties, or several children and reserved rights are involved, the full market value report is usually the appropriate form. We clarify this before the instruction.
Is the value of the usufruct or right of residence also determined?
On request, yes. Depending on the task, the unencumbered property, the encumbered property or the right itself is valued. We agree this together in advance.
Can the value be determined as at the time of an earlier gift?
Yes. The valuation then relates to the date at that time; what counts are the market conditions and the condition of the property at that time.
Do you also advise on gift tax?
No. I determine the property value. Tax questions are assessed by your tax adviser, the contractual structure by your notary or lawyer.
Who commissions the valuation?
This can be the previous owner, the recipient or the family jointly. It makes sense to agree the purpose and valuation date together in advance, so that everyone can use the result as a basis.
If an inheritance has already occurred: property valuation for inheritance →
Are you planning a transfer within the family?
Briefly describe the property, the parties involved and the intended rights. Before the instruction, we clarify which valuation suits your purpose, and you receive a specific price.
Let’s talk.You speak directly to me: +49 172 868 5666