Legal 4 Spain

Can I provide for my funeral arrangements in my Spanish Will?

anne — Thu, 20 May 2010 09:43:24 +0000

It is customary in English Wills to include wishes as to plans for funerals.
There isn’t the same custom in Spanish Wills. Instead, arrangements are fairly standardized. Cremation is the usual method; and this usually takes place extremely quickly- between 24 and 48 hours from the time of death. If someone should include funeral wishes in their Will, this is of limited use, as not only are such provisions non-legally binding; but in many cases, the Will isn’t even looked at until quite some time after the funeral has actually taken place.

There is no doubt that arrangements move quickly for those who pass away in Spain. On top of this, the comparatively high costs of the process in Spain can also come as quite a shock. For this reason, we recommend that those spending significant periods in Spain give consideration to wishes regarding funeral arrangements. Furthermore, that these wishes are embodied in a formal pre-paid plan with a reputable provider. At Legal4Spain, we are able to make recommendations and manage the process of formalizing a funeral plan for you, based on identifying the best service available for your specific needs.

For some, this is a difficult subject to think about, but it can be a huge relief to have it dealt with, and ‘out of the way’. Once you assume the responsibility for leaving a situation of certainty, and without financial worry, this can make a big difference for the family and loved ones who are left behind.

Can My Lasting Power of Attorney be used in Spain?

anne — Wed, 21 Apr 2010 09:25:12 +0000

Not in its existing format. But …
There is a specific format for this type of document which is acceptable in Spain, which extends a standard Power of Attorney to the closest available equivalent to a UK Lasting Power of Attorney. At Legal4 Spain, we are able to provide this form of Power of Attorney for signature both within Spain and outside Spain.

There are various legal and procedural differences between Spain and other countries in relation to Powers of Attorney. Therefore, at Legal4Spain, our advice is that the only way to avoid problems, delays and additional costs, is for an individual Power of Attorney to be made in relation to Spanish assets, in a form which is immediately acceptable and admissible by the Spanish Authorities. This can be an extremely useful and valuable facility for anyone who owns property in Spain, to cover the eventuality that they are unable to deal with their affairs in Spain at any future time, due to either physical or mental incapacity.

Is it possible to put a Spanish property in Trust?

anne — Wed, 10 Feb 2010 10:00:00 +0000

Many would say that this is impossible. HOWEVER that is not entirely correct.

It is the case that Spanish law does not directly recognise the UK / US form of trusteeship. HOWEVER, it is a well established feature of Spanish estate planning that life interests can be created (also in Wills) to assist in tax planning and mitigating tax exposure. Also, there are some very specific structures which can be created to include Spanish properties in either quasi- trust or full trust arrangements. This is a fairly advanced area of estate planning, and would not ordinarily be viable in relation to ‘routine’ situations of Spanish property ownership.

At Legal4 Spain, it is essential that clients are advised on their specific situation. We look at each client case on its individual merits and propose the documentation or structure which we feel best fits the objectives of the individual client, in the most cost effective way.

Can it be too late to make a Will of Spanish Assets?

anne — Thu, 17 Dec 2009 16:28:40 +0000

At Legal4spain, we have facilities for making valid Wills of Spanish assets for as long as the signatory has the necessary mental capacity, irrespective of physical state of health and location. Clearly, it is always best to plan ahead. However, in some cases we are approached by clients facing terminal illness, who quickly wish to put their affairs in order. It is a great relief and comfort to them and to their families, under these difficult circumstances, to ensure that their wishes in respect of their beloved Spanish properties will be carried out. Also, there are opportunities in many cases to structure arrangements, so as legally and legitimately to minimize the family’s Spanish Succession Tax liability.

Do I have to update my Will if I re-marry?

anne — Tue, 03 Nov 2009 21:15:20 +0000

Yes.
For English Wills, unless there is a specific provision in the Will anticipating the marriage in question
Yes (usually).
For Spanish Wills (in relation to non-Spanish testators).
In both cases, as this is such an important issue, to avoid any uncertainty, Legal4spain recommends always on remarriage, to seek advice on all Will documentation and we will be happy to assist with this.

Do I have to come to Spain to inherit Spanish assets?

anne — Mon, 05 Oct 2009 10:11:01 +0000

No.
Legal4spain has agreed form documentation with all 3 Spanish Consulate offices in the UK (and also the Spanish Consulate offices in various other countries) for initiating the legal procedures, thereby avoiding the requirement for beneficiaries to come to Spain. Even for those who are unable to attend a Spanish Consulate office, we have alternative procedures in place with Public Notaries throughout the UK to achieve the same objective.

Is it true that my (same sex) partner will have to pay 80% inheritance tax on what I leave him?

anne — Mon, 14 Sep 2009 21:58:21 +0000

Spanish Tax law can indeed lead to very unfortunate (fiscal) consequences in the context of inheritance by same sex partners- particularly if the relationship is not “recognised” with civil status. (It has to be said, an 80% marginal rate is not impossible, but it is virtually the worst case scenario). In any event, Spanish estate planning in the context of same sex relationships is a very complex and specialised area of practice, especially without the correct advice. At Legal4spain we are able to provide the best (and most tax efficient) solutions.

Does a new passport mean a new Will?

anne — Thu, 18 Jun 2009 09:35:10 +0000

No!

Unless there are other reasons for wishing to make a new Will- (eg. change of beneficiaries). However, we always recommend in these cases for old (expired) English passports to be retained with your personal papers for easy evidential purposes in probate. Also, in all new Spanish Wills we provide, we include N.I.E. details (if available) for the beneficiary, as this form of identification does not change.

Is it true that I have to leave my Spanish house to my children?

anne — Thu, 07 May 2009 14:45:06 +0000

No

In the vast majority of cases, English nationals are not subject to the Spanish law of succession (which does require parents to leave specified proportions of their estates to their children). This is something which we carefully consider in each case (it needs Spanish and English legal input to advise properly, which we provide as part of our service.

If a death goes unreported for 4 years, can you avoid inheritance tax in Spain?

anne — Thu, 02 Apr 2009 16:47:57 +0000

NO!
Whilst some believe that the Spanish Tax Authority might have been easily fooled in the past, that is not the case now. The reality is that for a tax debt to be ’statute barred’, the period is longer than 4 years. Hacienda have strong and far-reaching investigative powers these days. Resources are very serious indeed about collecting Succession Tax when it is due. At Legal4spain, we would never recommend such evasive measures, simply because they are unwise, as well as unnecessary. There are totally legal and legitimate ways to reduce your tax exposure by planning ahead. Not to mention, the benefit of helping you sleep at night without fearing Hacienda’s knock at your door!