# Wills etc



## Megsmum (Sep 9, 2012)

I may have mentioned we are arriving in ooh 3.5 weeks!

We have as much sorted and researched as we can, but I have one last question - hopefully - before we arrive.

I know Inheritance tax etc is all very regional based etc. So I will give you the scenario and appreciate advice how we can go about things legally

us x2
Daughters x2

House in Spain
money in Spanish Bank
money in English Banks

I die - after much gnashing of the teeth and wailing at my graveside

Who gets what and pays what.

We intend to have a Spanish Will , but I thought I read somewhere that we should also have a UK one which seems a bit odd.

Basically we obviously want to leave each other the assets and then if we both die or when we have both died whats left, might not be much we intend to live it up a LOL - split between the girls, that's is nothing complex

Is there anything we should do before we leave the UK. I have also read that we are better of having separate bank accounts in case of the death of one and the bank accounts get frozen.

Sounds a bit of a grim post, but basically want to do the best thing for each other. whilst understanding the Spanish Way

Thanks


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## extranjero (Nov 16, 2012)

cambio said:


> I may have mentioned we are arriving in ooh 3.5 weeks!
> 
> We have as much sorted and researched as we can, but I have one last question - hopefully - before we arrive.
> 
> ...


Search IHT in the forum and you will be overwhelmed with info.
Search the forums such as UK in Spain and Anglo info, also Blevins Franks website.
The worst thing is that the tax is on the person, not the estate, so if you die, your husband will pay IHT on all your worldwide assets.
The state allowance is just under 16,000 euros
Each region has its own allowance, meaning you could pay 0 or many thousands, which seems very unfair.
Murcia has abolished its own IHT allowance, so there is only the state allowance, and others may follow.
Unmarried couples who have not registered their partnership have less rights.
Ways of avoiding and reducing this tax have their own disadvantages.
Very rich people will have creative accountants- its the ones in the squeezed middle who suffer!
Good luck-IHT is Spain' s worst night mare, unless you do not own property and have few savings!


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## Megsmum (Sep 9, 2012)

extranjero said:


> Search IHT in the forum and you will be overwhelmed with info.
> Search the forums such as UK in Spain and Anglo info, also Blevins Franks website.
> The worst thing is that the tax is on the person, not the estate, so if you die, your husband will pay IHT on all your worldwide assets.
> The state allowance is just under 16,000 euros
> ...


Well we will own a property but apart from that will not have much in the way of savings off to have a look I did search in the FAQ but could not find will have another look:


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## extranjero (Nov 16, 2012)

cambio said:


> Well we will own a property but apart from that will not have much in the way of savings off to have a look I did search in the FAQ but could not find will have another look:


There are forums devoted to this subject!


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## xabiaxica (Jun 23, 2009)

cambio said:


> Well we will own a property but apart from that will not have much in the way of savings off to have a look I did search in the FAQ but could not find will have another look:


it won't work if you put IHT - it doesn't like 3 letter searches for some reason

try putting 'inheritance' 'wills' or something like that

use the advanced search & select 'entire posts' & Spain


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## Megsmum (Sep 9, 2012)

anyone know a link to the regional differences

Thanks


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## davexf (Jan 26, 2009)

Hola

One further thing recommended is "Power of attorney" in case one or both of you become incapable of making decisions; perhaps more important as you get older, but not a bad thing to have anyway. 

Davexf


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## Megsmum (Sep 9, 2012)

davexf said:


> Hola
> 
> One further thing recommended is "Power of attorney" in case one or both of you become incapable of making decisions; perhaps more important as you get older, but not a bad thing to have anyway.
> 
> Davexf


LOL does it count if your husband is incapable of making a decision that you agree with


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## CapnBilly (Jun 7, 2011)

cambio said:


> anyone know a link to the regional differences
> 
> Thanks


They vary quite a lot, it would be easier if you posted where you will be living.


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## Megsmum (Sep 9, 2012)

Caceres, Extremadura


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## snikpoh (Nov 19, 2007)

davexf said:


> Hola
> 
> One further thing recommended is "Power of attorney" in case one or both of you become incapable of making decisions; perhaps more important as you get older, but not a bad thing to have anyway.
> 
> Davexf


That really ought to be a "Lasting Power of Attorney".

We were (professionally) advised to have two wills - one for Spanish assets and one for UK assets. Each will then made reference to the existence of the other (very important).


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## baldilocks (Mar 7, 2010)

Sorry, having difficulties seeing at the moment having broken a contact lens this morning and of coures it is the one for my better eye. This makes typing and giving a complete reply difficult.

Basically you should have an English will to deal with any assets in UK and a Spanish will to deal with assets in Spain. This assumes you were born in England Wales or Northern Ireland. If you were born in Scotland, your UK will will be under Scottish law.

You need to have your Spanish will made out in compliance with the applicable UK law, this enables you to dispose of your assets as you wish. Under Spanish law, you are only allowed to dispose of your assets according to a set formula.

Your Spanish will can be made out in both languages in a two column format.

With regard to IHT, this varies according to where you live (in Andalucía, it is almost Nil for bequests to spouses) and must be paid before you can actually inherit.

MOST IMPORTANT do not put in your UK will "This will revokes all other wills" or words to that effect since, legally, it revokes any will you make in Spain.


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## snikpoh (Nov 19, 2007)

baldilocks said:


> Sorry, having difficulties seeing at the moment having broken a contact lens this morning and of coures it is the one for my better eye. This makes typing and giving a complete reply difficult.
> 
> Basically you should have an English will to deal with any assets in UK and a Spanish will to deal with assets in Spain. This assumes you were born in England Wales or Northern Ireland. If you were born in Scotland, your UK will will be under Scottish law.
> 
> ...



Isn't it, generally, within 6 months?


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## CapnBilly (Jun 7, 2011)

Extramadura doesn't look too bad actually, but I'll have to wander through the law first, as I haven't looked at it before.


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## davexf (Jan 26, 2009)

snikpoh said:


> That really ought to be a "Lasting Power of Attorney".
> 
> We were (professionally) advised to have two wills - one for Spanish assets and one for UK assets. Each will then made reference to the existence of the other (very important).


In England I think they now call it "enduring power of attorney" - but I´ve no idea what it´s called in Spain. 

Davexf


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## snikpoh (Nov 19, 2007)

davexf said:


> In England I think they now call it "enduring power of attorney" - but I´ve no idea what it´s called in Spain.
> 
> Davexf


You may well be correct.

When I had one drawn up for my mother (2009) it was a "lasting POA"


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## CapnBilly (Jun 7, 2011)

snikpoh said:


> You may well be correct. When I had one drawn up for my mother (2009) it was a "lasting POA"


No, it used to be called an "enduring power of attorney", they are now called lasting POA. I think it changed in 2007. There are two lasting POA, one covering health & property, and one for financial & property.


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## gus-lopez (Jan 4, 2010)

snikpoh said:


> Isn't it, generally, within 6 months?


Yes, you have 6 months to pay it but No,You cannot touch or access anything until you pay. You can't use any money that has been left to you as you can't access it & most banks won't lend you it even if it is covered by what's likely to be inherited.


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## extranjero (Nov 16, 2012)

cambio said:


> anyone know a link to the regional differences
> 
> Thanks


Bear in mind that any region can do what Murcia did, and abolish their IHT allowance!


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## Megsmum (Sep 9, 2012)

appreciate that, but you can only prepare for what you know, what you do not know is not worth worrying about


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## baldilocks (Mar 7, 2010)

cambio said:


> appreciate that, but you can only prepare for what you know, what you do not know is not worth worrying about


au contraire. What you don't know that you don't know is very worrying and can be very distressing when you get a huge fine and your car/cars is/are confiscated and crushed or some other thing that authority decides to hit you with out of the blue.


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## Megsmum (Sep 9, 2012)

baldilocks said:


> au contraire. What you don't know that you don't know is very worrying and can be very distressing when you get a huge fine and your car/cars is/are confiscated and crushed or some other thing that authority decides to hit you with out of the blue.


But if you do not know what it is you can not prepare for it, I cannot prepare for a hike in taxes, a new tax., a new foreigners rule or anything that I do not know is coming, I can only prepare for what I know! OR am I completely missing your point here?


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## CapnBilly (Jun 7, 2011)

cambio said:


> appreciate that, but you can only prepare for what you know, what you do not know is not worth worrying about


Right, this is my reading of what it says, based on the estate not totalling more than €600k. Providing the beneficiaries are in Group 1 (ascendants\descendants under 21) or Group 2 ( spouse, descendants\ascendants over 21), then if the value of the inheritance ( including property - see below) does not exceed €175k, there is full relief i.e no IHT. If the inheritance exceeds €175k, then only the national allowance applies ( a diddly €15,956 plus €3990 for each year under 21 upto €47.9k)

In terms of property, upto €122k, there is full relief, the next €30k is 99%, and so on upto €242k, after which it's 95%. However, don't forget the property value is added to any other, amount in arriving at the inheritance above.

So my reading of this is, property €125k, cash €€50k, IHT of 1% on €3k. Property €200k, cash €50k, IHT of 1% on €30k, 2% on €30k, 3% on €18k, and then national rates on about €35k, so about €3200.

I've tried to set this out so it's easy to follow, even though it looks odd.


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## Megsmum (Sep 9, 2012)

CapnBilly said:


> Right, this is my reading of what it says, based on the estate not totalling more than €600k. Providing the beneficiaries are in Group 1 (ascendants\descendants under 21) or Group 2 ( spouse, descendants\ascendants over 21), then if the value of the inheritance ( including property - see below) does not exceed €175k, there is full relief i.e no IHT. If the inheritance exceeds €175k, then only the national allowance applies ( a diddly €15,956 plus €3990 for each year under 21 upto €47.9k)
> 
> In terms of property, upto €122k, there is full relief, the next €30k is 99%, and so on upto €242k, after which it's 95%. However, don't forget the property value is added to any other, amount in arriving at the inheritance above.
> 
> ...



Phew thanks for that Capn xxx I am off for a cup of tea xx


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## extranjero (Nov 16, 2012)

CapnBilly said:


> Right, this is my reading of what it says, based on the estate not totalling more than €600k. Providing the beneficiaries are in Group 1 (ascendants\descendants under 21) or Group 2 ( spouse, descendants\ascendants over 21), then if the value of the inheritance ( including property - see below) does not exceed €175k, there is full relief i.e no IHT. If the inheritance exceeds €175k, then only the national allowance applies ( a diddly €15,956 plus €3990 for each year under 21 upto €47.9k)
> 
> In terms of property, upto €122k, there is full relief, the next €30k is 99%, and so on upto €242k, after which it's 95%. However, don't forget the property value is added to any other, amount in arriving at the inheritance above.
> 
> ...




The property relief is on condition you keep the property for 10 years- not something I bet the majority will do.
Which region are you referring to? Obviously not Murcia!


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## CapnBilly (Jun 7, 2011)

extranjero said:


> The property relief is on condition you keep the property for 10 years- not something I bet the majority will do. Which region are you referring to? Obviously not Murcia!


 Yes, that's correct, I forgot to add that, and then I had problems with the connection, so I had just logged back in to add that.. Also, it needs to be the normal residence, and be a spouse, ascendant or descendant, or a relative over 65. No, it's not Murcia, it's Extramadura, as per Cambios request above, and my reply.


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