girokonto abroad and German tax

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My elderly mother would like that I become the main account holder of her Girokonto. Both my Mum and her Girokonto are in Italy. Her preference is not that I am "also" on her account, but rather that she is "also" on it, with me being the main holder. If you think this is odd I'm with you (but please let's not discuss this aspect in this thread). I think her wish derives from a sense of insecurity, loneliness, age, etc etc, and this action would possibly give her some extra confidence. Of course the idea is that the girokonto would be mine "only officially", whereas it will always remain hers "in reality". I try to think the pros and cons of this.

She has some cash in it, plus some normal/modest income, like many pensioners.

I have an adult sister, with whom we are in good term. When it comes to finances, my Mum has less confidence in my sister than she has in me. Partly simply a consequence of the fact that my sister likes spending and enjoying a good life, whereas I am a hard core saver. I think my Mum prefers to keep my sister out of this.

 

Question:

would this trigger some interest from the Finanzamt? Or  my Gesetzliche Krankenkasse? Like, would they maybe conclude that her income or asset are actually mine?

 

 

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Does Italy have the equivalent of a Complete and Enduring Power of Attorney?

 

Might such a document free up her worries - that if anything were to happen to her, or she was worried about stuff, you would automatically have the right to 'be her' in all her affairs?

 

That way she knows she is not alone in her dealings, but it frees you up from any of the worries stated above. Her stuff is still hers, just that you have as much say in it as she does. Maybe if her Girokonto was online enabled, you could deal with it from Germany then.

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Thanks Kiplette.

 

5 minutes ago, kiplette said:

Does Italy have the equivalent of a Complete and Enduring Power of Attorney?

Dunno, but I guess of course yes there is something equivalent to this, I will have to check it up. Qualcuno sa come si dice questo in italiano? Grazie.

Of course the banking can be done all (or almost all) online.

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Surely all you are doing is making the account into a joint account. In that case, any income arising from the account (interest) would be taxable to 50% on you and 50% on her but her pension or other sources of income deposited into the account would be taxable on her.  When the evil day comes and she passes away, then there will be a joint asset to deal with in her estate.  Or am I missing the point?

 

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I see.  didn't think of that, not least because my head didn't reach the notion that there would be 400k€ in the mother's account.  Not impossible of course, or there could have been 39xk€ of gifts elsewhere and yk€ in the account but if it's anything like my current account, ho hum...  

 

Or would every deposit into the account - pension or wages - be treated as 50% gifted to the son?

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That's it:

52 minutes ago, GaryC said:

Or would every deposit into the account - pension or wages - be treated as 50% gifted to the son?

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It won't exceed 400k.

 

But does the parent - child gift need to be reported also if it's below this magic 400k?

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47 minutes ago, Gambatte said:

It won't exceed 400k.

But does the parent - child gift need to be reported also if it's below this magic 400k?

Yes, you always have to report gifts to the Finanzamt, in your case to the Finanzamt Kiel which is responsible for gift tax for the whole of Schleswig-Holstein, for details please read here.

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