Inheritance Mistakes in Spain.

Author: Alejandro Perdigones

Source: tododisca.com

Inheritances and the process of their distribution are one of the most important legal acts in Spain. It is also one of the most common procedures that take place practically every day. However, there is a great deal of ignorance about this legal act, which can later lead to serious mistakes.

In this regard, many notaries in Spain are surprised by the lack of planning among families and individuals when it comes to making a will or in the inheritance process. This fact denotes a lack of concern about inheritances in Spain.

With all this, notary experts list a total of 5 errors that are currently being committed in Spain based on the inheritance distribution process. These errors occur due to the lack of concern of citizens and practically non-existent planning.

Inheritance Mistakes

The first mistake when it comes to inheritances is not making a will. This official document allows the testator to determine a distribution of their inheritance and assets after their death, based on their criteria and within the framework of Spanish legislation. The absence of a will often leads to uncomfortable situations in the division of the inheritance, such as family conflicts.

In addition to this key point, specialist notaries list five serious errors that are often made around inheritances:

Not knowing the tax to pay: The Inheritance and Gift Tax is mandatory in all the Autonomous Communities of Spain, although the amount to be deposited depends on the legislation in force in each Autonomous Community. These taxes must be paid in the Autonomous Community in which the deceased person resided and which generates the inheritance.

Not notarizing on time: Many parents, aware of the high inheritance taxes in their Autonomous Community, buy a property and put it in the name of their children. It is a way to avoid paying taxes on the inheritance. This is an element little used among citizens.

Not leaving cash: The experts from ‘Idealista’ explain that “if before dying, the owner of a property tries to save some cash, it will save his heirs from paying taxes in each community (very high in some), the payment of another local tax that is the municipal capital gains tax, and even the management expenses of notaries and lawyers”.

Not knowing the effects of donation: Donations in life can be an alternative to inheritance. However, this procedure has a number of advantages and disadvantages compared to inheritance, which must be known.

Not knowing that it is possible to disinherit: When making a will, the testator must be aware of the possibility of disinheriting a forced heir. However, to carry out this procedure, certain conditions must be met.