SPANISH WILLS

It never really sinks in when people make a Will that the consequences of their actions may have a bearing on those they leave behind.

Many a time we see ill thought Wills, prepared by because the client said that that was what they wanted. Or in many instances the Will contains what they were told they had to do.

That’s all well and good but when your loved ones then find that they either do not inherit or they have a massive Inheritance Tax bill, the problems start. No consideration was given to what could be done and the consequences.

The main reason for this is the fact that the Spanish have compulsory heirship and only freedom of disposition of one third of their assets. Further, there is no understanding of the difference in English Law as against Spanish and what the English can do as against what the Spanish cannot.

Despite the number of times we have written about the subject of Wills people are still not listening and every week it is necessary to deal with those that have been bereaved and there is either no will, an English will with no English assets or they were told that they had to divide the estate in accordance with Spanish Law.
If you are English you have the democratic right to leave your assets to whoever you wish. Don’t let anyone tell you otherwise.

Spanish Wills should not be drawn simply on the basis of “this is what I want”. Any caring practitioner would take you through every element of the content of the Will, the consequences and liabilities.

Additional consideration must also be given to those in a second relationship with children from a previous relationship. This is particularly so when trying to protect not only your current partner but the children as well. There are ways and means to ensure that what you really want to happen does.

It should also be remembered that unmarried couples are particularly vulnerable when it comes to inheriting a partners assets. They are no relation and no matter how long you have lived together are not regarded as spouse.

So for those thinking of leaving their assets to their partner and then to all children between you – think again. Advice should be sought as to the amount of Inheritance Tax which would be payable both on the first death and then again on the second.

You should also bear in mind that anyone can change a Will at anytime. So if you pass away leaving everything to your partner and then to all the children between you there is nothing stopping them changing their Will to leave to their own children leaving your own devoid of the inheritance you thought they would receive.

Calculating Inheritance Tax takes into account a number of factors and it is not simply good enough to just take into account the value of the estate. You should look at how that value is calculated. Moreover residency status in Spain for the expat community is vital to the calculation and anyone considering making a Will should look closely at that situation too because it can save thousands in Inheritance Tax where appropriate.

For information on Inheritance Tax in the Valencian Region contact http://www.costablancalawyers.com