Spain does not recognise trusts
I made an English Will. It uses standard wording in which the Executors and Trustees are to hold my estate and realise it for cash with power to defer doing that. My Spanish notary has correctly pointed out that Spain does not recognize trusts so my Will will be invalid as regards real estate in Spain. The EU Succession Regulation 650/2012 may allow me to chose English succession laws but para 13 of the preamble specifically excludes validating what are inherently invalid trusts according to Spanish law. So I am looking at leaving my wife (widow designate) a right of "usufructo" (a sort of life interest) with my son holding the naked property subject to that encumbrance. Has anyone in this community dealt with this problem already? How does a usufructo work and how is it valued for taxation? Would it be easier to put the property into a company so that the trust is valid?
[ 11:56 ] [ Wednesday 21 March 2018 ]