INHERITANCE PLANNING CASE STUDIES

When we advise on estate planning issues at LEGAL4Spain, it is essential that your exposure to taxation is considered, both in Spain and in your home country. Here are just a few examples of the many situations we have worked with to date, in order to give you an idea of how important it is to consider the issue of taxation at every stage of the inheritance process.

Tax efficient corporate structures

Our experience has shown that this method of organising assets can truly work to the advantage of our clients for tax mitigation in relation to Spanish properties. People have approached us with potentially huge tax exposure, to discover that there exists an acceptable alternative, once advised correctly. The precision needed to set up the corporate structure, not to mention the skill required in administering it, means that there are very few organisations capable of handling this for you. Through LEGAL4Spain, you can make use of this expertise and the opportunity to enjoy substantial savings on the tax burden of your estate.

Complex family circumstances

As society has become more complicated, so the number of families with second and third marriages has increased. Particular care needs to be taken with these cases, as inheriting children from non-adopting parents can suffer higher tax rates than natural descendents. Our experience at LEGAL4Spain has shown that this can sometimes be avoided with complete fairness between beneficiaries, by reconsidering the succession route.

Non-married couples and de-facto relationships

There are particular pitfalls and risks of very high rates of tax exposure for non-married couples (whether or not, same-sex). At LEGAL4Spain, we address this both from the Spanish and non-Spanish perspective, to ensure fair and just treatment for all parties concerned.

Adjusting the Succession route

Clients have contacted us for advice on how to reduce the family’s tax exposure. At LEGAL4Spain, we have been able to recommend a number of tax efficient options. With careful planning of the succession route within Spanish wills, it is often possible to maximise the benefit of the inheritance.

Terminally ill clients

We are often approached by clients who are terminally ill (or indeed by their families), concerned about how beneficiaries will cope with tax liability. At LEGAL4Spain we are quickly able to advise on any lawful steps that could be taken to mitigate the tax exposure. We provide a clear time estimate for the work involved and under the circumstances we have the resources available to have all documentation and even complete estate restructuring completed in a short period.

Surviving spouses and tax credits between the UK and Spain

Unilateral Relief treaties (if applied) only provide a credit in respect of tax payable twice. For example, in the case of one spouse inheriting from another, Spanish Succession tax is payable, but there is no UK IHT payable. In this case, there would be no credit given in the UK. Intelligent tax planning in relation to your Spanish assets is therefore crucial to avoid unwelcome (and very expensive surprises).

We are here to help and will be very pleased to hear from you and to answer any questions you may have. Contact us at LEGAL4Spain and we will provide you with a fixed fee quotation.