Can donations be revoked?
January 16, 2024 | 50,00 EUR | answered by Lina Walter
Dear tax advisor,
my name is Sofia Albrecht and I have a question regarding gift tax. Some time ago, I gifted my son a property as he urgently needed a place to live. However, my financial situation and needs have since changed, and I am wondering if it is possible to revoke the gift.
My son no longer uses the property and I urgently need the money for other purposes. I am concerned that I may have to pay taxes on the gift if I try to revoke it. Are there any ways to revoke the gift without facing tax consequences?
I would greatly appreciate your help and advice on this matter. Thank you in advance.
Sincerely,
Sofia Albrecht
Dear Mrs. Albrecht,
Thank you for your inquiry regarding gift tax. I understand that in your current financial situation, it is important to explore all options to meet your needs. It is important to know that gifts are generally irrevocable. If you have gifted the property to your son, it is usually not possible to undo the gift.
However, there are some aspects to consider regarding gift tax. If you retract or revoke the gift within 10 years of the transfer, this could have tax consequences. In this case, the tax office could unwind the gift and retroactively assess gift tax. Therefore, it is advisable to inform yourself about the tax implications before retracting the gift.
There are exceptions that allow for the retraction of the gift without tax consequences. For example, if your son has already sold the property or if the gift was made under a condition that was not fulfilled. In such cases, retracting the gift may be possible without gift tax under certain circumstances.
It would be advisable to seek advice from a tax advisor or lawyer in your specific case to clarify the individual possibilities and risks. An expert can help you find the best course of action to meet your financial needs without suffering tax disadvantages.
I hope this information has been helpful to you. Please do not hesitate to contact me for further questions or for a personal consultation.
Best regards,
Lina Walter
