The Christian Democratic and Flemish party (CD&V) wants the principle of substitution in inheritance to be extended to the calculation of inheritance tax, ensuring substitute heirs are taxed at the same rate as the original beneficiary.
Currently, substitution applies when an inheritance passes to someone other than the original heir, often because the original heir has passed away, is deemed unfit to inherit, or has rejected the inheritance. In 2022, there were 7,325 substitute heirs in Flanders, and in 2023, the number dropped to 6,228, according to data obtained by Flemish MP Katrien Schryvers.
The issue lies in taxation. Although the substitute heir inherits as if they were the original heir, they are taxed based on their personal relationship with the deceased, not the relationship of the original heir.
Schryvers argues that this discrepancy leads to unfair outcomes. “At present, the principle of substitution determines who can inherit but is not taken into account when calculating inheritance tax,” she explained. “As a result, substitute heirs inheriting the same amount as other family members can end up with vastly different net amounts after taxes.”
CD&V is calling for this change to ensure fairer treatment for heirs in situations beyond their control, aligning the tax rate with the original heir’s relationship to the deceased.
