If one of a married couple dies and there is no will and no children would the spouse automatically get the other half of the house? Obviously talking about living in Spain here.

If you die without a will the Spanish inheritance laws will apply.

They are as follows.

Descendants: The decedent's issue and their descendants will inherit in the first place. Either legitimate, illegitimate child or individuals adopted have the same succession rights.

Ascendants: They will inherit when the decedent dies without leaving issue. They will inherit in equal parts.

The spouse will inherit if the decedent has neither issue nor ascendants.

Collateral family: If the decedent had neither descendants, nor ascendants, nor spouse, his brothers and/or sisters will inherit equal parts of the estate.Nephews/nieces will inherit the portion that would have corresponded to the brother/sister deceased (brother/sister of the testator and father/mother of the nephews/nieces who shall inherit)

Cousins will inherit when there exist no one of the individuals above mentioned.

The Spanish Government will inherit when there exist no one of the individuals above mentioned.

Totally unfair, unreal and unbelievable!!

Hear Hear

Blimey , I think by the sounds of that the first thing on the agenda is to make a will

But it is the law here, and you have to live by Spanish laws. There are many laws in the UK that are unfair, unreal and unbelievable.

Thanks for that it is very important then to get my friends to make a will. Another point. Okay what if one of them died whilst in the UK and the surviving spouse didn´t tell the Spanish tax authorities?

One way the Spanish get round the inheritance tax is not to tell the taxman of the death until 4 years have elapsed. I know of people who have had this advice, in one case from their bank manager, and in the other from a lawyer!

I fear that the system in Spain may have improved recently and that the various government departments may now be talking to each other so whether it would work is debatable.

If the death occured in the UK it would be easier to avoid informing the Spanish authorities but there could be problems selling the property and also, if the ascendents or descendents who should have had a share, get to find out that could be a problem.

The solution is clear - MAKE A WILL.

If you are part of a couple, and one dies, withdraw a load of cash BEFORE telling the banks, as your accounts, if joint, will be frozen for a while until things are sorted out. But, as Fred says, MAKE A WILL.

Without going into too much detail as I am far from qualified to do so.
If you have sufficient capital and the correct advice from a good financial advisor who knows the Spanish law. You can legally avoid Spanish /British inheritance tax alltogether, without making a Spanish will, and decide yourself who would benefit in the event of your death.

You cant just say that and leave it at that!

Come on - spill

Hi all,
I am married with 2 children from a previous marriage. Both my husband and myself have made spanish wills leaving everything firstly to each other and then to my 2 children. If I die first that would mean my children would then inherit from a step parent which I think would be at a higher rate. Does anyone know any facts or figures on this? We are both residents and my son will shortly be purchasing a holiday home here.. Both children have several properties in the UK which might make a difference I would like to say that this is the best forum I have found and thanks to everyone for all the help.

If you inherit in Spain there are certain allowances which vary from region to region. These allowances are not normally applicable to non relatives and also the tax rates are double the normal rate.

As has been mentioned in an earlier post, there are many ways to avoid IHT in Spain. Setting up a trust between the family members is a common route. The other option is to transfer the property to the children now and retain the right to use the property during the life of the two of you.

Hi Fred
What would happen if you are not married!
For example,two Freinds have a house in spain solely owned by one and no morgage,Either one are non resident in spain.
One person Dies and leaves it to the other,what would be the best legal way to reduce the Inheritance tax?
Regards
kevin