For deaths in 2026, a parent and child sharing a home cannot qualify as inheritance tax partners. A parent may therefore face a lower exemption and higher rates. An estate can hold a valuable home while leaving too little cash to pay the tax bill.
Why this matters
A qualifying partner has a €828,035 exemption in 2026. A parent inheriting from a child has €62,110. Partners and children pay 10% up to €158,669, then 20%. Parents pay 30% and 40%. Check the home file separately. Ownership, bare ownership, usufruct and an occupancy right have different values. A private tax bill can also strain an owner-manager’s company cash, payroll, VAT and supplier invoices.
Example
An adult child dies owning part of the family home. The will gives the surviving parent a right to live there. Although the parent can stay in the house, they are not an inheritance tax partner. The estate file must show the ownership share, occupancy right, mortgage debt and taxable value. If cash is short, the family may consider a dividend or company loan. The owner-manager must first assess the effect on payroll, VAT and creditors.
XTROVERSO tips
- Map every legal interest. Record who owns each part of the home. List usufruct, bare ownership, rights of use and occupancy rights separately.
- Keep one estate file. Keep the will, deed, mortgage records, WOZ decisions, renovation invoices and occupancy agreements in one controlled file.
- Check private cash first. Estimate the taxable value, deductible debt and private cash available for the tax bill before considering company money.
- Keep the company separate. Treat a dividend, shareholder loan or asset sale as a company decision. Record its commercial basis and effect on cash.
- Watch the filing date. For a death in 2026, the return letter gives a filing date 20 months after death. Tax interest can generally start then. Have the legal rights and values checked early.
When a family home, estate and company cash overlap, we can help map the records, rights and next decisions
The data, sourcing, and analysis behind this article were conducted by Linda Pavan. AI was not used to identify sources, build the factual basis, or produce the analytical judgment contained here. AI was used only as a drafting aid. The final English text was personally reviewed, edited, and approved by Linda Pavan before publication.
References
- Bloedverwant in rechte lijn krijgt geen partnervrijstelling - Taxence
- Belastingdienst - Direct-line relatives and fiscal partnership for inheritance tax
- Belastingdienst - Current 2026 exemption gap between a parent and a partner
- Belastingdienst - 2026 inheritance-tax rates for parents and partners
- Belastingdienst - Valuation of usufruct and bare ownership
- Belastingdienst - Inheritance-tax valuation of a dwelling
- Rechtspraak - Exclusion of direct-line relatives from the partner exemption
- Belastingdienst - 2026 filing window and tax-interest exposure
