wealth-estate-tax-workflow-base

Wealth / Estate / Gift / Property Transfer Tax Workflow Base v0.1

What this file is

Tier 1 workflow base for transfer-on-death, gift, annual wealth, and property purchase tax skills.

Section 1 — Audience and assumptions

This base covers a family of related taxes triggered by:

• Holding — annual wealth tax
• Transfer at death — inheritance / estate tax
• Inter-vivos transfer — gift tax
• Real estate purchase / transfer — property transfer tax / stamp duty

This base assumes:

• The taxpayer (or their representative) is preparing an accurate inventory
• Cross-border situs rules require multi-jurisdictional analysis
• A credentialed practitioner signs off before filing or transfer

Section 2 — Universal lifecycle

Step 1 — Identify the chargeable event

Event / Tax(es) potentially triggered table ([T1])

Event	Tax(es) potentially triggered
Annual reference date (31 Dec typically)	Wealth tax (Spain, Norway, Switzerland, Argentina, Colombia, Uruguay, France IFI, NL Box 3)
Death of holder	Inheritance / estate tax (DE, FR, ES, IT, NL, BE, UK, US, JP, KR)
Gift / lifetime transfer	Gift tax (DE, FR, ES, IT, NL, BE, UK, US, JP, KR)
Real estate purchase	Property transfer tax (UK SDLT, DE GrESt, FR DMTO, IT registro, ES ITP/AJD, NL OB, SG BSD+ABSD, HK AVD)

Step 2 — Determine personal scope

• Personal scope for wealth / estate / gift — Tax residence / domicile / long-term residence (UK from April 2025) of taxpayer / decedent / donor; worldwide assets if resident; local-situs only if non-resident ([T1])
• Personal scope for property transfer — Purchaser's residence affects surcharge (UK 2% non-resident; Singapore ABSD 60% foreign; Canada NRST 25%; Australia state surcharges 7-8%); property's situs determines primary tax ([T1])

Step 3 — Inventory all assets

• For each asset, document — Class (real estate, listed shares, unlisted shares, bank deposit, debt instrument, private equity, art / collectibles, crypto-asset, pension rights, life insurance, business interest); Location (situs per jurisdiction's rules); Valuation date; Valuation method (cadastral value, FMV, latest transaction, IFRS book value, professional appraisal); Ownership share ([T1])

Step 4 — Apply valuation rules

• Spanish ISD / wealth tax — Cadastral value for real estate; "valor real" elsewhere ([T1])
• French IFI — Market value with 30% discount for primary residence (wealth tax) ([T1])
• German Erbschaftsteuer — Bewertungsgesetz fair market value with specific business property mechanics ([T1])
• UK IHT — Open market value at date of death ([T1])
• US estate tax — Fair market value at date of death OR alternate valuation date (6 months later, electable) ([T1])
• Italian successioni — Cadastral value × multiplier (110 for first home, 120 for second, etc.) ([T1])

Step 5 — Deduct liabilities

• Deductible liabilities — Mortgages secured on the relevant asset; Funeral expenses (US, UK estate); Administration expenses; Outstanding tax liabilities; Loans where foreign-bank-debt restrictions apply (Spain ISD, Uruguay) ([T1])

Step 6 — Identify beneficiaries and apply relationship rules

• Beneficiary relationship categories — Spouse / civil partner / cohabitant; Direct descendants (children, grandchildren); Direct ascendants (parents, grandparents); Siblings; Other relatives within a defined degree; Unrelated. Each relationship has distinct exemptions and rates (Germany Class I-III; Spain Group I-IV; France direct line vs collateral). ([T1])

Step 7 — Apply exemptions and reliefs

• Common reliefs — Marital deduction (US unlimited; UK unlimited for LTR spouse; EUR 500k Germany); Habitual residence exemption (Spain national EUR 300k); Family business / Pacte Dutreil 75% (France) / Verschonungsabschlag 85-100% (Germany) / BPR 100% (UK); Agricultural property relief (UK APR; various national reliefs); Charitable beneficiary deduction; Disabled beneficiary supplementary allowance ([T1])

Step 8 — Apply rate schedule

• Rate schedule forms — Progressive by amount (US estate 18-40%; French succession 5-45%; German IHT 7-50%); Flat by class (Italian successioni 4% / 6% / 8%); Regional variation (Spanish ISD by CCAA; Swiss canton) ([T1])

Step 9 — Apply caps and integration

• Caps and integration rules — Spain: combined IRPF + IP + Solidaridad capped at 60% of IRPF base; France IFI: capped at 75% of prior year income; US: estate, gift, GST share a unified credit; UK: 7-year cumulation rule (lifetime transfers within 7 years before death come back into estate) ([T1])

Step 10 — Compute and apply foreign tax credits

• Foreign tax credit rule — Treaty article 22 (wealth) or estate / inheritance tax treaties (rare; ~15 bilateral). Unilateral credit usually available for same asset taxed twice. ([T1])

Step 11 — Filing and payment

• Filing and payment components — Identify filing form per regime; Filing deadline (typically 6-12 months from event); Payment terms (instalments for family businesses); Currency translation rules; Documentation index ([T1])

Section 3 — Cross-border specifics

3.1 Situs determination

Asset class / Typical situs table

Asset class	Typical situs
Real estate	Land location
Tangible movable	Physical location at event
Shares in companies	Country of incorporation OR share register
Bank deposits	Country of bank
Government bonds	Country of issue
Private equity / unlisted	Country of company residence
Crypto	Owner's residence (contested)

3.2 Treaties

Wealth / estate / inheritance tax treaties exist sparsely. Most relief is unilateral.

Section 4 — Reviewer brief

1. Personal scope
   - Tax residence / domicile / LTR confirmation
   - Worldwide vs local-situs basis

2. Asset inventory
   - Class, situs, value, ownership

3. Liabilities and deductions

4. Beneficiary / heir register
   - Relationship classification per jurisdiction

5. Exemptions and reliefs schedule

6. Computation per jurisdiction

7. Cap analysis (Spain 60%, France 75%, US unified credit)

8. Cross-border credit

9. Filing schedule and payment plan

10. Reviewer questions — [T2]/[T3] items

Section 5 — Self-checks (14)

1. Tax residence / domicile / LTR tested per each jurisdiction's specific definition
2. Reference date applied correctly (31 December for wealth; date of death for IHT; date of gift)
3. All assets inventoried with situs determination
4. Valuation methodology per jurisdiction (cadastral, FMV, multiplier, professional appraisal)
5. Deductible liabilities only included where regime permits
6. Beneficiary relationships classified per jurisdiction taxonomy
7. Exemptions applied (marital, habitual residence, business, agricultural)
8. Rate schedule applied to net not gross
9. Caps applied (Spain 60%, France IFI 75%)
10. 7-year cumulation applied (UK IHT)
11. Cross-border foreign tax credit applied where double taxation
12. Filing form, deadline, payment plan per jurisdiction
13. Step-up basis impact recorded (US beneficiaries' income tax)
14. Output flags every [T2]/[T3] item for reviewer judgement

Section 6 — Refusal catalogue

Refusal catalogue table

Refusal	Trigger
R-WET-1	Beneficiary / heir under disability and lacking representative
R-WET-2	Trust / nominee / hidden beneficial ownership without disclosure
R-WET-3	Asset class not clearly classified (NFT, crypto, complex derivative)
R-WET-4	Family business with relief eligibility uncertain (continuation, payroll, holding period)
R-WET-5	Cross-border situs in dispute
R-WET-6	DAC6 / MDR reportable arrangement
R-WET-7	Pre-existing tax authority audit or controversy

• R-WET-1 — Beneficiary / heir under disability and lacking representative
• R-WET-2 — Trust / nominee / hidden beneficial ownership without disclosure
• R-WET-3 — Asset class not clearly classified (NFT, crypto, complex derivative)
• R-WET-4 — Family business with relief eligibility uncertain (continuation, payroll, holding period)
• R-WET-5 — Cross-border situs in dispute
• R-WET-6 — DAC6 / MDR reportable arrangement
• R-WET-7 — Pre-existing tax authority audit or controversy

Section 7 — Disclaimer

This workflow base produces working papers for review by credentialed estate planning practitioners. Estate, gift, wealth, and property transfer taxes have material magnitude and are jurisdiction-specific. Every output must be reviewed and signed off by a credentialed practitioner before filing or executing a transfer.

The most up-to-date, verified version of this workflow base is maintained at openaccountants.com.

Section 2 — Universal lifecycle

0. Step 1 workflow orchestration — Identify the chargeable event
1. Step 2 workflow orchestration — Determine personal scope
2. Step 3 workflow orchestration — Inventory all assets
3. Step 4 workflow orchestration — Apply valuation rules
4. Step 5 workflow orchestration — Deduct liabilities
5. Step 6 workflow orchestration — Identify beneficiaries and apply relationship rules
6. Step 7 workflow orchestration — Apply exemptions and reliefs
7. Step 8 workflow orchestration — Apply rate schedule
8. Step 9 workflow orchestration — Apply caps and integration
9. Step 10 workflow orchestration — Compute and apply foreign tax credits
10. Step 11 workflow orchestration — Filing and payment