The tax regulations allow banks to advance that money
• This bank issues checks for the value of the tax in favor of the Treasury
Source: Editorial -elEconomista.es
04/19/2024 –
Receiving an inheritance after the death of a loved one inevitably implies an increase in the assets of the person who inherits and this increase does not go unnoticed by the Treasury, which requires payment of the Inheritance Tax.
The Inheritance Tax regulations explain in its article 1 (it can be consulted at this link) that this tax is responsible for taxing “the increases in assets obtained for profit by natural persons” by inheritance, legacy or any other succession title, among other cases.
No one escapes this mandate. This is explained in the regulations in article 17: “Taxpayers who have their habitual residence in Spain will be required to pay the tax by personal obligation for all the assets and rights they acquire, regardless of where they are located or the domicile or residence of the person or entity paying.”
Therefore, in order to receive an inheritance, it is necessary to first pay the Inheritance Tax, a procedure that can cause problems if the heir is short of money. But there is no reason to worry, since the regulations allow a way out.
It is the same tax regulation that allows citizens to pay the tax with the money from the inheritance they are going to receive, that is, by advancing some of that inheritance. Article 80 sums it up perfectly: The Treasury allows financial institutions to “transfer securities deposited” in the accounts of the deceased of the inheritance “and, with a charge to their amount, or to the balance in favor of the deceased in accounts of any type, issue the corresponding checks in the name of the Public Treasury for the exact amount of the aforementioned liquidations.”
How to pay the Inheritance Tax with the inheritance money
The Bank of Spain explains in its blog the procedure to pay the Inheritance Tax with the inheritance money that has not yet been received. The agency informs that the person interested in doing so must request it from the bank where the account from which the money is to be withdrawn is located.
When requesting it from the bank, the citizen must provide the client’s death certificate, the certificate from the Registry of Last Will and Testament Acts and an authorized copy of the last will or the declaration of intestate heirs when there are no last wills.
By delivering this documentation and, once the bank has been asked to start the procedure, said entity will issue, charged to the deceased’s assets, a check in the name of the Tax Agency for the exclusive purpose of payment” and the procedure will be closed. With the payment of the tax, the heir will finally be able to receive the inheritance.