The German Inheritance Tax Reform in 2016 came along with a lot of modifications compared to the previous regulations. Some of the new regulations as a lower valuation factor for the determination of the company value might be advantageous for businesses. In contrast to the old rules, the new rules do not foresee a far-reaching tax exemption for business assets in general.

Based on different model calculations, the effects of the major modifications in the German inheritance act are assessed.