Federal Fiscal Court on the Gift Tax Treatment of the Retention of Usufruct in a Whole Life Insurance Policy

Both the transfer of insurance benefits without consideration and the reservation of usufruct are—when considered in isolation—relevant planning tools in advisory practice. In the DB-Steuerboard article, Malena Anthofer discusses the Federal Fiscal Court (BFH) ruling of January 28, 2026 (II R 27/22) regarding the gift tax treatment of the reservation of usufruct in the context of a whole life insurance policy. Finally, the article presents examples from advisory practice that, in contrast to the ruling, serve to reduce gift tax liability.