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wealth-estate-tax-workflow-base.md225 lines8.8 KB
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| 1 | --- |
| 2 | name: wealth-estate-tax-workflow-base |
| 3 | description: > |
| 4 | Tier 1 workflow base for wealth tax, inheritance / estate tax, gift tax, and property transfer tax skills. Covers asset inventory, valuation, beneficiary / heir identification, exemption / relief analysis, computation, double-tax relief, and filing assembly. Workflow architecture only — no country rate tables. MUST be loaded alongside a content skill — wealth-tax-matrix, inheritance-estate-gift-matrix, property-transfer-tax-matrix, or a country-specific skill. Assumes a credentialed estate planning practitioner (private client lawyer, notary, CPA, EA, or equivalent) reviews and signs off on every output. Does NOT cover: probate procedure, will drafting, trust administration beyond tax mechanics. |
| 5 | version: 0.1 |
| 6 | jurisdiction: GLOBAL |
| 7 | category: foundation |
| 8 | verified_by: pending |
| 9 | --- |
| 10 | |
| 11 | # Wealth / Estate / Gift / Property Transfer Tax Workflow Base v0.1 |
| 12 | |
| 13 | ## What this file is |
| 14 | |
| 15 | Tier 1 workflow base for transfer-on-death, gift, annual wealth, and property purchase tax skills. |
| 16 | |
| 17 | --- |
| 18 | |
| 19 | ## Section 1 — Audience and assumptions |
| 20 | |
| 21 | This base covers a family of related taxes triggered by: |
| 22 | - **Holding** — annual wealth tax |
| 23 | - **Transfer at death** — inheritance / estate tax |
| 24 | - **Inter-vivos transfer** — gift tax |
| 25 | - **Real estate purchase / transfer** — property transfer tax / stamp duty |
| 26 | |
| 27 | This base assumes: |
| 28 | - The taxpayer (or their representative) is preparing an accurate inventory |
| 29 | - Cross-border situs rules require multi-jurisdictional analysis |
| 30 | - A credentialed practitioner signs off before filing or transfer |
| 31 | |
| 32 | --- |
| 33 | |
| 34 | ## Section 2 — Universal lifecycle |
| 35 | |
| 36 | ### Step 1 — Identify the chargeable event |
| 37 | |
| 38 | **[T1]** |
| 39 | |
| 40 | | Event | Tax(es) potentially triggered | |
| 41 | |---|---| |
| 42 | | Annual reference date (31 Dec typically) | Wealth tax (Spain, Norway, Switzerland, Argentina, Colombia, Uruguay, France IFI, NL Box 3) | |
| 43 | | Death of holder | Inheritance / estate tax (DE, FR, ES, IT, NL, BE, UK, US, JP, KR) | |
| 44 | | Gift / lifetime transfer | Gift tax (DE, FR, ES, IT, NL, BE, UK, US, JP, KR) | |
| 45 | | Real estate purchase | Property transfer tax (UK SDLT, DE GrESt, FR DMTO, IT registro, ES ITP/AJD, NL OB, SG BSD+ABSD, HK AVD) | |
| 46 | |
| 47 | ### Step 2 — Determine personal scope |
| 48 | |
| 49 | **[T1]** For wealth / estate / gift: |
| 50 | - Tax residence / domicile / long-term residence (UK from April 2025) of taxpayer / decedent / donor |
| 51 | - Worldwide assets if resident; local-situs only if non-resident |
| 52 | |
| 53 | **[T1]** For property transfer: |
| 54 | - Purchaser's residence affects surcharge (UK 2% non-resident; Singapore ABSD 60% foreign; Canada NRST 25%; Australia state surcharges 7-8%) |
| 55 | - Property's situs determines primary tax |
| 56 | |
| 57 | ### Step 3 — Inventory all assets |
| 58 | |
| 59 | **[T1] For each asset, document:** |
| 60 | - Class (real estate, listed shares, unlisted shares, bank deposit, debt instrument, private equity, art / collectibles, crypto-asset, pension rights, life insurance, business interest) |
| 61 | - Location (situs per jurisdiction's rules) |
| 62 | - Valuation date |
| 63 | - Valuation method (cadastral value, FMV, latest transaction, IFRS book value, professional appraisal) |
| 64 | - Ownership share |
| 65 | |
| 66 | ### Step 4 — Apply valuation rules |
| 67 | |
| 68 | **[T1]** Each tax / country has specific rules: |
| 69 | - **Spanish ISD / wealth tax**: cadastral value for real estate; "valor real" elsewhere |
| 70 | - **French IFI**: market value with 30% discount for primary residence (wealth tax) |
| 71 | - **German Erbschaftsteuer**: Bewertungsgesetz fair market value with specific business property mechanics |
| 72 | - **UK IHT**: open market value at date of death |
| 73 | - **US estate tax**: fair market value at date of death OR alternate valuation date (6 months later, electable) |
| 74 | - **Italian successioni**: cadastral value × multiplier (110 for first home, 120 for second, etc.) |
| 75 | |
| 76 | ### Step 5 — Deduct liabilities |
| 77 | |
| 78 | **[T1]** |
| 79 | - Mortgages secured on the relevant asset |
| 80 | - Funeral expenses (US, UK estate) |
| 81 | - Administration expenses |
| 82 | - Outstanding tax liabilities |
| 83 | - Loans where foreign-bank-debt restrictions apply (Spain ISD, Uruguay) |
| 84 | |
| 85 | ### Step 6 — Identify beneficiaries and apply relationship rules |
| 86 | |
| 87 | **[T1]** For inheritance / gift: |
| 88 | - Spouse / civil partner / cohabitant |
| 89 | - Direct descendants (children, grandchildren) |
| 90 | - Direct ascendants (parents, grandparents) |
| 91 | - Siblings |
| 92 | - Other relatives within a defined degree |
| 93 | - Unrelated |
| 94 | |
| 95 | Each relationship has distinct exemptions and rates (Germany Class I-III; Spain Group I-IV; France direct line vs collateral). |
| 96 | |
| 97 | ### Step 7 — Apply exemptions and reliefs |
| 98 | |
| 99 | **[T1] Common reliefs:** |
| 100 | - Marital deduction (US unlimited; UK unlimited for LTR spouse; EUR 500k Germany) |
| 101 | - Habitual residence exemption (Spain national EUR 300k) |
| 102 | - Family business / Pacte Dutreil 75% (France) / Verschonungsabschlag 85-100% (Germany) / BPR 100% (UK) |
| 103 | - Agricultural property relief (UK APR; various national reliefs) |
| 104 | - Charitable beneficiary deduction |
| 105 | - Disabled beneficiary supplementary allowance |
| 106 | |
| 107 | ### Step 8 — Apply rate schedule |
| 108 | |
| 109 | **[T1]** Rate schedule may be: |
| 110 | - Progressive by amount (US estate 18-40%; French succession 5-45%; German IHT 7-50%) |
| 111 | - Flat by class (Italian successioni 4% / 6% / 8%) |
| 112 | - Regional variation (Spanish ISD by CCAA; Swiss canton) |
| 113 | |
| 114 | ### Step 9 — Apply caps and integration |
| 115 | |
| 116 | **[T1]** |
| 117 | - **Spain**: combined IRPF + IP + Solidaridad capped at 60% of IRPF base |
| 118 | - **France IFI**: capped at 75% of prior year income |
| 119 | - **US**: estate, gift, GST share a unified credit |
| 120 | - **UK**: 7-year cumulation rule (lifetime transfers within 7 years before death come back into estate) |
| 121 | |
| 122 | ### Step 10 — Compute and apply foreign tax credits |
| 123 | |
| 124 | **[T1]** Treaty article 22 (wealth) or estate / inheritance tax treaties (rare; ~15 bilateral). Unilateral credit usually available for same asset taxed twice. |
| 125 | |
| 126 | ### Step 11 — Filing and payment |
| 127 | |
| 128 | **[T1]** |
| 129 | - Identify filing form per regime |
| 130 | - Filing deadline (typically 6-12 months from event) |
| 131 | - Payment terms (instalments for family businesses) |
| 132 | - Currency translation rules |
| 133 | - Documentation index |
| 134 | |
| 135 | --- |
| 136 | |
| 137 | ## Section 3 — Cross-border specifics |
| 138 | |
| 139 | ### 3.1 Situs determination |
| 140 | |
| 141 | | Asset class | Typical situs | |
| 142 | |---|---| |
| 143 | | Real estate | Land location | |
| 144 | | Tangible movable | Physical location at event | |
| 145 | | Shares in companies | Country of incorporation OR share register | |
| 146 | | Bank deposits | Country of bank | |
| 147 | | Government bonds | Country of issue | |
| 148 | | Private equity / unlisted | Country of company residence | |
| 149 | | Crypto | Owner's residence (contested) | |
| 150 | |
| 151 | ### 3.2 Treaties |
| 152 | |
| 153 | Wealth / estate / inheritance tax treaties exist sparsely. Most relief is unilateral. |
| 154 | |
| 155 | --- |
| 156 | |
| 157 | ## Section 4 — Reviewer brief |
| 158 | |
| 159 | ``` |
| 160 | 1. Personal scope |
| 161 | - Tax residence / domicile / LTR confirmation |
| 162 | - Worldwide vs local-situs basis |
| 163 | |
| 164 | 2. Asset inventory |
| 165 | - Class, situs, value, ownership |
| 166 | |
| 167 | 3. Liabilities and deductions |
| 168 | |
| 169 | 4. Beneficiary / heir register |
| 170 | - Relationship classification per jurisdiction |
| 171 | |
| 172 | 5. Exemptions and reliefs schedule |
| 173 | |
| 174 | 6. Computation per jurisdiction |
| 175 | |
| 176 | 7. Cap analysis (Spain 60%, France 75%, US unified credit) |
| 177 | |
| 178 | 8. Cross-border credit |
| 179 | |
| 180 | 9. Filing schedule and payment plan |
| 181 | |
| 182 | 10. Reviewer questions — [T2]/[T3] items |
| 183 | ``` |
| 184 | |
| 185 | --- |
| 186 | |
| 187 | ## Section 5 — Self-checks (14) |
| 188 | |
| 189 | 1. [ ] Tax residence / domicile / LTR tested per each jurisdiction's specific definition |
| 190 | 2. [ ] Reference date applied correctly (31 December for wealth; date of death for IHT; date of gift) |
| 191 | 3. [ ] All assets inventoried with situs determination |
| 192 | 4. [ ] Valuation methodology per jurisdiction (cadastral, FMV, multiplier, professional appraisal) |
| 193 | 5. [ ] Deductible liabilities only included where regime permits |
| 194 | 6. [ ] Beneficiary relationships classified per jurisdiction taxonomy |
| 195 | 7. [ ] Exemptions applied (marital, habitual residence, business, agricultural) |
| 196 | 8. [ ] Rate schedule applied to net not gross |
| 197 | 9. [ ] Caps applied (Spain 60%, France IFI 75%) |
| 198 | 10. [ ] 7-year cumulation applied (UK IHT) |
| 199 | 11. [ ] Cross-border foreign tax credit applied where double taxation |
| 200 | 12. [ ] Filing form, deadline, payment plan per jurisdiction |
| 201 | 13. [ ] Step-up basis impact recorded (US beneficiaries' income tax) |
| 202 | 14. [ ] Output flags every [T2]/[T3] item for reviewer judgement |
| 203 | |
| 204 | --- |
| 205 | |
| 206 | ## Section 6 — Refusal catalogue |
| 207 | |
| 208 | | Refusal | Trigger | |
| 209 | |---|---| |
| 210 | | R-WET-1 | Beneficiary / heir under disability and lacking representative | |
| 211 | | R-WET-2 | Trust / nominee / hidden beneficial ownership without disclosure | |
| 212 | | R-WET-3 | Asset class not clearly classified (NFT, crypto, complex derivative) | |
| 213 | | R-WET-4 | Family business with relief eligibility uncertain (continuation, payroll, holding period) | |
| 214 | | R-WET-5 | Cross-border situs in dispute | |
| 215 | | R-WET-6 | DAC6 / MDR reportable arrangement | |
| 216 | | R-WET-7 | Pre-existing tax authority audit or controversy | |
| 217 | |
| 218 | --- |
| 219 | |
| 220 | ## Section 7 — Disclaimer |
| 221 | |
| 222 | 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. |
| 223 | |
| 224 | The most up-to-date, verified version of this workflow base is maintained at [openaccountants.com](https://openaccountants.com). |
| 225 |
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About
Tier 1 workflow base for wealth tax, inheritance / estate tax, gift tax, and property transfer tax skills. Covers asset inventory, valuation, beneficiary / heir identification, exemption / relief analysis, computation, double-tax relief, and filing assembly. Workflow architecture only — no country rate tables. MUST be loaded alongside a content skill — wealth-tax-matrix, inheritance-estate-gift-matrix, property-transfer-tax-matrix, or a country-specific skill. Assumes a credentialed estate planning practitioner (private client lawyer, notary, CPA, EA, or equivalent) reviews and signs off on every output. Does NOT cover: probate procedure, will drafting, trust administration beyond tax mechanics.
GLOBALty-2025
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