The Spanish inheritance system, how does it work?
27 Marzo, 2024
In this article, we will delve into the legal aspects of inheritance, exploring all its requirements. Join us as we unravel the laws governing succession and provide a clear guide on navigating the legal maze of inheritance. Get ready to gain a deeper understanding from a legal standpoint of this crucial aspect of estate planning!
What is an inheritance?
An inheritance refers to the set of assets, rights, and obligations that a person leaves behind upon their death and that are transmitted to their heirs or legatees. Assets may include real estate properties, money in bank accounts, investments, vehicles, furniture, jewelry, and other assets. Rights may consist of contracts, copyrights, patents, or other legal benefits. However, it's important to note that <u>obligations may involve debts or financial responsibilities that the deceased person had</u>.
Who can inherit?
This is one of the million-dollar questions. To answer it, it's necessary to have a clear understanding of a series of concepts and assumptions.
Firstly, it's important to understand that, for distribution purposes, the inheritance is divided into three parts, namely:
- The strict legitimate third. This refers to the one-third portion of the inheritance over which the deceased cannot dispose. In other words, this third of the estate will always end up in the hands of the relatives specified by law, regardless of what the deceased may have stipulated in their will.
- The improvement third: This can be used - obviously, if there is a will - to leave more to one child or descendant than to the rest.
- The free disposal third: This other third of the inheritance can go to the person(s) or institution that the testator wishes.
What documents are necessary?
The necessary documentation for managing an inheritance can vary depending on the jurisdiction and specific circumstances, but generally includes the following essential documents:
- Death Certificate: This official document confirms the individual's death and is essential for initiating the succession process.
- Will: If the deceased left a will, this legally binding document specifies their wishes regarding the distribution of their assets.
- Certificate of Last Wills: In some places (such as in Spain), this document confirms whether the deceased person left a will or not. It may be necessary to obtain information about the succession process.
- Copy of the Property Registry: If the inheritance includes real estate properties, a copy of the property registry will be required to facilitate the transfer of ownership to the heirs.
- Life Insurance Documents: In the event that the deceased had life insurance policies, the documents related to these policies will be necessary to claim the benefits.
How is the inheritance tax settled?
In principle, there are two methods:
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Through administrative settlement: In this case, the documentation and data are submitted to the competent regional tax administration, and they are responsible for calculating the amount to be paid.
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Through self-assessment: This is the usual method. The heir will submit form 650 along with the necessary documentation (death certificate and certificate of last wills, declaration of heirs or authenticated document of the heirs' relationship, and documents proving the assets to be inherited and their value). In the form, the taxpayer will determine the amount to be paid based on the parameters established by each region.
Does inheritance tax expire?
The short answer is: yes. Inheritance tax expires if, within a period of four years from the date of death, the tax authority does not request payment.
In conclusion, managing an inheritance involves a meticulous and legally complex process. Compiling and presenting the appropriate documentation are crucial to ensuring a smooth transition of the deceased's assets to their heirs. Remember that, in this process, having the guidance of legal professionals can make a difference. Inheritance, with its legal complexi
