confused - please help

Dear Sirs,
My mothers partner has recently passed away and we are now looking for an answer to a rather complicated question, we hope you can help.

2005 My mother owned a house in England.
2006 My mother met a chap and although they never married, became common-law man and wife with mum legally adopting his name.
2007 My mother sold her house in England and bought another one in England in her new name but only in her name.
2008 My mother and her partner moved to Spain and rented accommodation.
2009 My mother sold her house in England.
2009 My mother brought all of the proceeds of her house sale to Spain and bought a house here but in both names thinking of her partner`s security if she passed away prior to him.
2009 They both made wills in which the solicitor has quoted them as being husband and wife. In those wills they each bequeathed everything, firstly to each other, then to mums three children on the death of the remaining survivor.
Aug 2010 My mother`s partner has now passed away

Can you please advise us of my mothers position regarding inheritance tax as she has no savings and is sick with worry she might have to sell her home

If it helps, the escatura value (aug 2009) was 87000 euro`s but she actually paid 97500 euro`s + tax.

Thanking you in anticipation

Dear Madam

I take it your mother paid the whole property following what you write, which was €87,000.

If her ex-partner, who owned 50%, passed away she has inherited half of said amount more or less.

The Spanish Inheritance Tax would be applied to her being classified in Group IV (meaning she is not entitled to any tax allowance on inheriting). State law would apply.

Spanish Inheritance Tax: How much is it? - 1st February 2000

Her tax liability would be in the region of €5,000 which she can request a deferral (must be requested within the next 5 months of the death) and/or pay in installments spannning over a 5-year period. More details here:

Spanish Inheritance Tax: Advantages of Making a Will in Spain - 3rd September 2009

She would additionally need to add Plus ValÃ*a tax, which would be negligible as the property was purchased in 2009, and the lawyer's fees (in the region of €3,000 - 5,000 plus 18% VAT plus expenses i.e. re-registering the 50% at the Land Registry under her name & Notary fees).

I hope the above is useful to your mother.

Honestly in almost a decade I've never come across anyone needing to sell a house to payoff accrued Spanish IHT. Judging from the above numbers it is even more doubtful your mother cannot raise the funds to pay off IHT and the associated expenses over a 5-year period, in my humble opinion.

Just so you know, we do not make accurate tax assessments unless we are hired.

Sincerely
Raymundo LarraÃ*n Nesbitt