Privileged assets within the meaning of §§ 13a, 13b Inheritance and Gift Tax Act (IGTA) which are transferred by way of death or by gifts inter vivos if no consideration is granted, do not lead to subsequent taxation due to a violation the holding regulations of § 13a para. 5 IGTA (in the version of the Inheritance Tax Reform Act 2009).
This also applies to cases if rights to use (e.g., usufruct) are withheld. Therefore, no violation of § 13a para. 5 no. 1, 4 IGTA occurs.
Since the regulation of § 13a para. 5 IGTA in the version of the Inheritance Tax Reform Act 2009 has been adopted unaltered by § 13a para. 6 IGTA, the previous holding regulations are applied analogously in the current version of the Inheritance and Gift Tax Act.
For more details in regard to the holding regulations for privileged business assets see Koeniger, The German Inheritance and Gift Tax, 2017, p. 195 et seqq.