(2022) Who is entitled to the bereavement allowance?

In the year following the death of a spouse, there is an option to choose joint assessment with the deceased spouse one more time, provided the conditions for joint assessment were met at the time of death. Grace splitting is also known as widow's splitting.

The surviving spouse opts for the individual assessment for single persons under § 25 EStG, but exceptionally and for the last time, the favourable splitting rate is applied (so-called grace splitting under § 32a para. 6 no. 1 EStG). However, the condition for grace splitting / widow's splitting is that the conditions for spousal taxation were met "at the time of death". This means that both spouses lived in Germany and were not permanently separated.

If you separated from your spouse before their death, this condition would not be met. Joint assessment for the year of death alone is not sufficient for grace splitting (BFH ruling of 27.2.1998, BStBl. 1998 II p. 350; H 184a EStR).

Note: The granting of the splitting rate is intended to prevent a tax disadvantage for the survivor upon the death of a spouse.