Page 6 Female Focus
Your lifestyle magazine!
Inheritance Tax
Sadly enough, it is a fact, that everybody must depart
from this world at one time or another, their assets,
however, will remain, those goods and assets that
belonged to the deceased person at the time of his/
her death form their inheritance.
It is possible that when the person dies, he or she has executed
a will, but it is also possible that he or she has not. From the
legal point of view, the differences are substantial as in the
first case the Will establishes the wishes of the deceased.
However, if there is no Will, Law substitutes such Will.
During the time that the inheritance has not been accepted or
rejected, the inheritance is said to be an “unclaimed state”.
Once there is a “call” to summon the inheritors, these can
accept or reject the Will or inheritance, these are the formal
actions that are followed by a Public Notary and they are
completely based on the free Will of the inheritors, although
there are certain actions by which the Law presumes the Will
has been accepted. After the acceptance, the inheritance is
divided and allotted amongst the inheritors.
The problem for the Expat in Spain is that there is an illusion
that upon death the estate passes automatically to the Spouse.
This just isn’t right. Failure to make a Will causes unbelievable
difficulties for the family left behind.
There is also the misconception that there is no inheritance
tax because it is below the threshold. This view is based on
the allowances in the UK which have no standing in Spain.
In certain circumstances there are no allowances for a
beneficiary in others there is an allowance of just under 16000
euros which, lets be honest is not much. So when faced with
this situation there is the question of who inherits and to
what extent their liability is to inheritance tax.
Whilst fiscal residents in the Valencia Region and their spouse/
children who are also fiscally resident in the region do benefit
from 95% tax relief, sadly is it not available for anyone who
does not fall into that criteria such as a partner or non resident.
This is particularly relevant to those couples who are
unmarried. Will or no Will there is no tax relief and the tax
payable is at a much higher rate. Don’t forget that you can
leave your assets to children from a previous relationship
whilst protecting your partner.
Getting the right advice and working out what is best for you
and your loved ones could save thousands. It doesn’t matter
how many times we write on this topic there are still those
that don’t listen and it is usually to their loved ones cost.
Whether we like it or not the Spanish system is in place to
keep assets within the bloodline. As a UK national, English
law applies to your Spanish Will and you do have the
democratic right to leave your assets to whoever you wish,
but make sure you get it right. If anyone just takes instructions
from you without discussing your circumstances and/ or
inheritance tax and your beneficiaries exposure to it –
BEWARE. You could be making a costly mistake.
Cross border laws and tax implications are complex and
everyone is entitled to know their own position before making
an informed choice.
For more information or advice on Inheritance Tax
please contact Costa Blanca Lawyers on 96 681 4506 or
email them at
femalefocus@costablancalawyers.com or
see their website
www.costablancalawyers.com
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