Spanish Inheritance Tax: Advantages of Making a Will in Spain

[lawbird]

Hi Lyndsay,

Subject to us reviewing the documentation and based only on the information provided, there will be no IHT applicable to your mother in law as there is an exemption that she could benefit from on this 50% share of the property that will be transferred to her under the inheritance proceeding.

The above is under the assumption that the property was the main residence of the deceased.

In any case, and should you instruct us, one of our solicitors will ensure that the estate is transferred in the most tax efficient manner possible.

In terms of procedure, there is an amount of paperwork that needs to be worked out, before the heirs can successfully acquire legal title to the property (specially when the inheritance proceeding has an international element, as I believe this is the case). In summary, and broadly speaking, these are some of the steps:

• Ascertaining the deceased last wishes, properties and debts he had in Spain. A thorough Due Diligence is required to ensure that the heirs are actually not accepting more liabilities than the assets themselves.
• Obtain Death Certificate and apostille
• Obtaining Probate
• Requesting Certificate from the Spanish Last Will Registry
• Inheritance Acceptance before a Spanish Public Notary
• Distribution of the inheritance in accordance with the last wishes, the law and the desires of the heirs
• Registration of the heir’s legal title at the Spanish Land Registry.
• Arrangement and payment of the applicable Inheritance Tax.

For all of the above it is strongly recommended that you instruct a Lawyer to represent your mother in law during the process to ensure the property is transferred smoothly.

If you are interested in obtaining a quote for our service, please do not hesitate to contact us via the following contact form:

http://www.lawbird.com/services/contact

Kind regards,

[HEATHER EWEN]

Our son owns 50% of a property worth aprox 150,000 Euros and my husband and I own the other 50% Can we transfer the 50% we own to him now and at what cost. The property is in Andalucia

[Lisa HT]

My father passed away in September 2007. He had made a spanish will and I inherited 80% of the proeperty, situated in Andalucia, with the other 20% share between my 3 children and my niece. I have not yet paid any inheritance tax as I have had legal problems with the property as it is illegal in so much as it is on unsegregated, on urban land, etc. and estate agents could not put a value on it for this I do now have a valuation of around 65, 000 euros. in its current state. am i still liable for IHT and will i have to pay interest due to all the problems I have had. My father brought his property a thought everything was legal but just got ripped off by the estate agent and lawyer. The original estate agent was taken to court and found guilty as he had sold many properties that weren't his to sell and just pocketed the money. He has since passed away. The lawyer involved in my fathers sale was the estate agents brother who also took money from my father and many others. This has turned into a nightmare but i am not going to let it beat me. Can you advise as I am getting confused with all the information on the web. Thank you.

[Doonoundoky]

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[Marina]

For purposes of exemption from the inheritance tax -what constitutes proof of disability in Spain if an heir who is disabled from birth lives abroad? Do I need a notarized translation of a letter from my doctor? Can I send a copy of the Govenment form used here in Canada for disability tax credits? My dad died in his hometown of Leon just a few days ago and has a will there because he and my mum own a flat in Leon, but all of his chidren live abroad - in Canada, the UK and US.

[K1mmie]

If a uk born parent moves to Spain and dies and the other parent does not notify all children in Uk, how do I find out about:

A) if there was a will
B) whose name property was in
C) if children in uk can claim an interest

Thanks

[F.Zori]

Hello K1mmie

In answer to your questions:

1. To find out if a Spanish will was drawn, you must request in writing a will certificate form the Central Will Registry (Registro Ultimas Voluntades) in Madrid, together with a death certificate of the deceased.
2. In the land registry you will be able to find out whether this person owns any property in Spain, or alternatively, if the property is now in the name of another person.
3. In principle, according to the current legislation, UK Law applies, and the children can claim an interest on a property only if the will appoints them as heirs. However, there are special circumstances in which Spanish inheritance law applies, by which the children are considered forcible inheritors.

Should you wish to obtain a will certificate and find out in whose name the property you mention is registered, please let me know, and I will provide you with a quotation for our services.

Kind regards,

Francisco Zori Perez

[markhincks]

I think the importance needs to be stressed to ex-pats that a Will should be written for both assets in England and those in their new constituent country. We have queries on a daily basis asking whether our online Wills cover assets in foreign countries (outside England and Wales). They do not. It is imperative that you start making a Will for all assets in all countries they are held within.

[John Richards]

I am in need of some urgent advice. An old friend of mine is currently in intensive care in Granada and may not survive.
He cannot speak and is heavily sedated.

He is 69 and has lived in Spain for many years. I do not think he has ever registered with the Spanish tax authorities. He may well be registered on the padron of the local authority in Orgiva, Andalucia.
His only income is his old age pension from the UK government and he has no savings.

He is legally separated from his wife [UK law] and has two children in their 30's, both of whom own morgtaged property in Spain.

His daughter lives and works in the UK, paying UK tax through the PAYE system. She has no UK assets.

His son lives and works in Spain and I believe currently pays tax as a self-employed person.
Although the son's property is in his sole name it is occupied by his extranged partner and mother of his two children. They were never married.
There is an order for maintenance in force and he is in arrears.

My friend and his wife jointly owned a house and land during their marriage.

After separation they formally divided the property and each has a separate escritura for their share. They never formally divorced.

My friend's wife owns the original house. He owns a building used as a carpenter's workshop which has living accommodation.

Although the workshop has its own escritura I do not know whether it has ever been formally registered or indeed what its legal status is. I suspect it will be regarded as an almacen or nave by the local authority. Mains electricity was connected in recent years.

I am pretty sure my friend has no Spanish will. He may or may not have a UK will. At the moment it is impossible to ask him!

His workshop, tools and contents together with and associated small parcel of land is his only asset, either in Spain or UK. Under current market conditions it might be valued at 80k euros.

I think he has debts of 4-5k on an UK credit card.

My concern at the moment is:

1. What happens if he dies intestate.

2. What happens if he does not recover sufficiently to sign a Spanish [or English] will should one be drafted quickly.

3. Is there a legal mechanism for allowing somebody else to act on his behalf should he end up on a life support machine for some time [as doctors are suggesting might be the case]?

4. It would be his intention to leave his entire estate divided equally between his two grown-up children. He may have considered including his two grandchildren[both under 6] in any will.

5. Is there a template for a simple Spanish will available anywhere on line that might be used to draft something for him to sign?

I look forward to you reply. Time is, as you will appreciate, somewhat of the essence.

I am registered with the forum. Perhaps you might direct me to the appropriate thread[s] in any reply

Thanks in advance,

John

[Linda]

My partner and myself are about to purchase a property in Lanzarote for 156,000 euros. After reading your very informative article we have decided to buy it in my name only to avoid incurring excessive IHT should I die before my partner. He is 63 and I am 61. The sole beneficiary would be my son aged 30.
Can you tell me if it would be better to include my son as joint owner now (at the time of purchase) rather than to leave the property to him in a Spanish will.
Also if my son and I were joint owners would he have to declare it on his UK tax return and pay tax on it?
My partner and I are not intending to live permanently in Spain (at least not at the present).
Thank you, Linda