New legislation on inheritance tax and duol estate 2021

On March 17, 2021, the Flemish Government* approved a new decree reforming the inheritance and gift tax. The new regulations took effect on July 1, 2021, and also apply to wills already made.

Bequests and gifts to Belgian Red Cross-Flanders become tax-free

The inheritance and gift tax was reduced to 0%. Specifically, this means that when you leave something or donate something to our organization, we no longer have to pay tax on it. Thus, everything you give to us can be used in full to help people in need. 

Modification of duo bequests

The tax regulations surrounding duo bequests were also changed. Through a duo bequest, you leave a portion to a charity and a portion to your loved ones through your will. The charity then pays all the inheritance tax, so your loved ones often enjoy a tax advantage. However, due to the new decree, since July 1, 2021, a duo death will no longer provide a tax benefit. More than that, chances are that the duo-leave is no longer enforceable and your will will will not have the effect you envisioned. Therefore, if you have already included the Red Cross in your will through the duo-leave technique, it is best to have it reviewed. 

Questions?

Do you have questions about the new regulations, or other questions about bequeathing to the Red Cross? Then please contact our bequest staff Aagje Geerardyn and Charlotte Michiels. You can reach them by phone on 015 44 33 50 or 015 44 35 81 or by email legaten@rodekruis.be.

*The new decree applies if you live in Flanders. For Brussels and Wallonia, the rates for inheritance tax to charities and the tax regulations on duo bequests remain unchanged.