Dying

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Dec 19th 2006, 12:03 pm

#61

EsuriJohn

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Re: Dying

Quote:

Originally Posted by Unexpat

That's a good question and one that I have on my list to research when I get some more time.

I suspect that it depends on whether Spanish or UK law applies to you on your demise, which probably depends on where you are considered to be resident at the time.

Then again it may be that it depends on your citizenship, irrespective of where you are resident, so long as you have both an English and Spanish will (that tally with each other so that the will is recognised in both countries).

If you fall under Spanish law, I believe that you will find that your children must inherit a minimum proportion of your estate, by law, upon your demise. i.e. Your surviving spouse cannot inherit all the estate.

There are also the much higher levels of inheritance tax that one has to pay under Spanish law and the less favourable surviving spouse inheritance conditions - if I'm not mistaken (which I may well be, as I have yet to research the subject properly).

I'm assuming that if you are resident in Spain (irrespective of whether your will will operate on the basis of English law where your spouse can inherit all) then your Spanish assets fall due to Spanish taxation regardless.

Hopefully, someone out there can educate us both

Hi Unexpat,

I have started to look into this area for when we sign for the plot next year since I want to make wills to cover us should anything untoward happen.

There are some early conclusions:-

!. If you have Spanish assets you should make a Spanish will covering those assets in Spain. This is not mandatory but if you die intestate or with only a will overseas it is much more difficult to deal with your estate for your heirs. If you have no will the Spanish assets will be distributed according to Spanish inheritance rules and this may not be how you would want them to be divided. If you have an overseas will this can be proved in Spain but this not easy and costly.

2.Your Spanish will can be written at home if you want to DIY but it should be double column with the English translation alongside the Spanish will which the notary will sign and store. It can leave your assets as you would in England ie not following the Spanish rules and this will be proved at the appropriate time.

3. Citizenship, tax residency, residecia and domicile are all factors which will affect your succession tax position. The most difficult to deal with is domicile which is normally that of your father.

This means that if your father was British and you were born in UK if you have any assets in UK they will be subject to UK IHT. Also HMCR could chase after a chunk of your Spanish assets but only the difference between what you have paid to the Hacienda and what might still be left owing to HMRC because of the double tax treaty.

Regards,

John.

Dec 20th 2006, 8:16 am

#62

Unexpat

BE Enthusiast

Joined: Jan 2006

Posts: 394

Re: Dying

Quote:

Originally Posted by John & Kath

John.

Thanks John. As I suspected, it is straightforward enough to make both English and Spanish wills that tally and that are written in accordance with English law, but how they will be dealt with in terms of taxation and execution is more complex. I look forward to any future updates that you may care to share with us on this matter.