Joint Accounts
Sep 12th 2007, 3:26 pm
#1
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Joint Accounts
When we move to Spain we intend to keep the majority of money in a u.k international account.We also need to open a joint account with a spanish bank.The problem we have is that we understand if on or the other of us dies the account will be frozen.Is this the case
Also,we married in Belgium and we made a marriage contract which is the same as a will or distribution of funds if we separate(unlikely after 34 years lol)Will this be legal in spain or do we have to make new arrangements under spanish law
Your input will be appreciated.
Also,we married in Belgium and we made a marriage contract which is the same as a will or distribution of funds if we separate(unlikely after 34 years lol)Will this be legal in spain or do we have to make new arrangements under spanish law
Your input will be appreciated.
Sep 12th 2007, 3:59 pm
#2
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Joined: Jan 2006
Location: On the edge
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Re: Joint Accounts
You need to make a Spanish will for sure, so take the advice of a solicitor to make it fit in with your circumstances
Use search on here as its been discussed before on more than one occasion.
Although I know someone who's husband died and the bank account got frozen, I'm not syure if this is the norm or just because they had it set up in a particular way
Use search on here as its been discussed before on more than one occasion.
Although I know someone who's husband died and the bank account got frozen, I'm not syure if this is the norm or just because they had it set up in a particular way
Sep 12th 2007, 4:02 pm
#3
Joined: Jun 2006
Location: Granada Costa
Posts: 10,899
Re: Joint Accounts
When we move to Spain we intend to keep the majority of money in a u.k international account.We also need to open a joint account with a spanish bank.The problem we have is that we understand if on or the other of us dies the account will be frozen.Is this the case
Also,we married in Belgium and we made a marriage contract which is the same as a will or distribution of funds if we separate(unlikely after 34 years lol)Will this be legal in spain or do we have to make new arrangements under spanish law
Your input will be appreciated.
Also,we married in Belgium and we made a marriage contract which is the same as a will or distribution of funds if we separate(unlikely after 34 years lol)Will this be legal in spain or do we have to make new arrangements under spanish law
Your input will be appreciated.
If you need to withdraw cash then just don't tell the bank about the death.
Your Belgian will will be valid in Spain but you would be advised to make a Spanish will for any assets in Spain.
Sep 12th 2007, 5:56 pm
#4
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Re: Joint Accounts
Yes, a joint account is frozen on the death of one of the holders. However direct debits such as utility payemnts etc will usually continue to be paid.
If you need to withdraw cash then just don't tell the bank about the death.
Your Belgian will will be valid in Spain but you would be advised to make a Spanish will for any assets in Spain.
If you need to withdraw cash then just don't tell the bank about the death.
Your Belgian will will be valid in Spain but you would be advised to make a Spanish will for any assets in Spain.
Sep 12th 2007, 6:08 pm
#5
Joined: Jun 2006
Location: Granada Costa
Posts: 10,899
Re: Joint Accounts
It's the same in the UK. The terms of a will only apply after it has gone to probate. Until then everything is frozen.
You also have to remember that in Spain inheritance tax will be charged to the surviving spouse on the half that they inherit. Unlike the UK there is no exemption for transfers between spouses. Also you cannot use the assets to pay the tax. Only when the tax has been paid do you have access to your inheritance.
Sep 12th 2007, 6:22 pm
#6
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Re: Joint Accounts
Yes it would - it is standard bank procedure. The bank will not know what is in your will.
It's the same in the UK. The terms of a will only apply after it has gone to probate. Until then everything is frozen.
You also have to remember that in Spain inheritance tax will be charged to the surviving spouse on the half that they inherit. Unlike the UK there is no exemption for transfers between spouses. Also you cannot use the assets to pay the tax. Only when the tax has been paid do you have access to your inheritance.
It's the same in the UK. The terms of a will only apply after it has gone to probate. Until then everything is frozen.
You also have to remember that in Spain inheritance tax will be charged to the surviving spouse on the half that they inherit. Unlike the UK there is no exemption for transfers between spouses. Also you cannot use the assets to pay the tax. Only when the tax has been paid do you have access to your inheritance.
Sorry didn't read your reply properly youv'e already answered that one DOH!!
Sep 12th 2007, 6:52 pm
#7
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Re: Joint Accounts
You also have to remember that in Spain inheritance tax will be charged to the surviving spouse on the half that they inherit. Unlike the UK there is no exemption for transfers between spouses. Also you cannot use the assets to pay the tax. Only when the tax has been paid do you have access to your inheritance.
Sep 12th 2007, 9:26 pm
#8
Joined: Jun 2006
Location: Granada Costa
Posts: 10,899
Re: Joint Accounts
When one partner dies then you often want to sell up and move to a smaller house and raise some cash to increase your income - especially if it is the wife now living on a reduced pension.
In some regions of Spain the laws have changed and there are more favourable allowances against IHT - particularly in Andalucia.
In time IHT in Spain will almost disappear but at the moment it is one of the worse taxes that you have to face.
Sep 13th 2007, 7:30 am
#9
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Re: Joint Accounts
That's right but that's not always what you want to do.
When one partner dies then you often want to sell up and move to a smaller house and raise some cash to increase your income - especially if it is the wife now living on a reduced pension.
In some regions of Spain the laws have changed and there are more favourable allowances against IHT - particularly in Andalucia.
In time IHT in Spain will almost disappear but at the moment it is one of the worse taxes that you have to face.
When one partner dies then you often want to sell up and move to a smaller house and raise some cash to increase your income - especially if it is the wife now living on a reduced pension.
In some regions of Spain the laws have changed and there are more favourable allowances against IHT - particularly in Andalucia.
In time IHT in Spain will almost disappear but at the moment it is one of the worse taxes that you have to face.
I think I basically understand Spanish IHT , but I was led to believe if you have a Spanish mortgage this was taken into account when & deductable when the survivng persons assets are being assessed for IHT
Any idea if this true ? I was going to pay some of our mortgage off but was advised against it
I received this information from an (English financial adviser) but he does own Spanish property also.
We are situated in Andalucia
Chris
Sep 13th 2007, 7:51 am
#10
Joined: Jun 2006
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Re: Joint Accounts
Yes Chris, that is correct.
You say that you were thinking of paying off the mortgage - remember that that money is also an asset and is liable for IHT.
Similarly if you take out a mortgage on an existing property, while it does reduce the value of the property, the money you raise increases your assets which are still liable.
You say that you were thinking of paying off the mortgage - remember that that money is also an asset and is liable for IHT.
Similarly if you take out a mortgage on an existing property, while it does reduce the value of the property, the money you raise increases your assets which are still liable.
Sep 13th 2007, 8:01 am
#11
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Re: Joint Accounts
Yes Chris, that is correct.
You say that you were thinking of paying off the mortgage - remember that that money is also an asset and is liable for IHT.
Similarly if you take out a mortgage on an existing property, while it does reduce the value of the property, the money you raise increases your assets which are still liable.
You say that you were thinking of paying off the mortgage - remember that that money is also an asset and is liable for IHT.
Similarly if you take out a mortgage on an existing property, while it does reduce the value of the property, the money you raise increases your assets which are still liable.
So basically leave the mortgage as it is & any spare cash spend on fast cars & loose women
Only joking lucky my better half does not read this forum
Chris
