# Inheritance tax



## infomaniac (May 27, 2013)

Another in a long line of questions I'm afraid 

I have no children but my husband has two who live in Australia. Can I ask what the position would be in the event of his death? From what I've read it seems they would take precedence over me to inherit!!

Thanks a lot


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## infomaniac (May 27, 2013)

Can anyone point me in the direction where I could find out the answer to my question please? I've looked on line but there doesn't seem to be a clear answer


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## xabiaxica (Jun 23, 2009)

infomaniac said:


> Can anyone point me in the direction where I could find out the answer to my question please? I've looked on line but there doesn't seem to be a clear answer


Under Spanish inheritance laws, then yes, the children would inherit .... if he died intestate & was resident in Spain.

However - he can choose to have his estate dealt with under the rules of his country of nationality. He would need a will written under those laws, specifically stating that it was to be dealt with under those laws.

That is a seperate issue to inheritance tax though.


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## snikpoh (Nov 19, 2007)

This is quite a good link. Basically, your husbands children MUST get two-thirds of the estate with the final third being willed to whomsoever he chooses (normally his wife).

As @xabiachica says, you can now include the 'Brussels clause' stipulating that you want to have the will read under UK law (or whatever your nationality is). However, this does NOT alter where and what tax is to be paid.

A guide to Spanish inheritance tax | Finance | Expatica Spain


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## Alcalaina (Aug 6, 2010)

IHT and inheritance laws differ according to region. The Basques have just abolished the rule that children must inherit.
Spanish probate law: Basque law change sees Spaniards rush to write children out of wills | In English | EL PAÍS


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## infomaniac (May 27, 2013)

Thanks for that Xabiachica.

So... if we are both resident in Spain and we have wills leaving everything to each other that would be OK? I'm not envisaging my hubby dying any time soon but I think it's best to have everything thrashed out! 

Then whichever of us dies first, the other will be eligible to pay (the huge!) tax bill?


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## snikpoh (Nov 19, 2007)

infomaniac said:


> Thanks for that Xabiachica.
> 
> So... if we are both resident in Spain and we have wills leaving everything to each other that would be OK? I'm not envisaging my hubby dying any time soon but I think it's best to have everything thrashed out!
> 
> Then whichever of us dies first, the other will be eligible to pay (the huge!) tax bill?


... ONLY if your wills have the Brussels clause in them. 

It doesn't matter that the wills state who gets what as Spanish law will overrule that unless the clause is there.


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## Alcalaina (Aug 6, 2010)

infomaniac said:


> Thanks for that Xabiachica.
> 
> So... if we are both resident in Spain and we have wills leaving everything to each other that would be OK? I'm not envisaging my hubby dying any time soon but I think it's best to have everything thrashed out!
> 
> Then whichever of us dies first, the other will be eligible to pay (the huge!) tax bill?


yes in theory but spouses rarely get huge tax bills. In Andalucía they get a 99% allowance on the house, provided they continue to live there for three (?) years, and from 2017 the first €250k is tax free anyway.


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## infomaniac (May 27, 2013)

Thanks everyone. I do apologise for being thick but I'm just not getting this 

We will be resident in Spain (Valencia) and have wills made out for the other to inherit (with the Brussels clause). 

snikpoh, when you say my step-children must get 2/3 of the estate, what does this actually mean and how is it enforced? Would he/I need to sell the house to pay the kids off if one of us dies? Everything we have will go to them eventually anyway but we don't want to be turfed out of our house to pay them until we have both popped our clogs!! 

I'm sure I must be reading this wrong and making it unnecessarily complicated!


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## baldilocks (Mar 7, 2010)

infomaniac said:


> Thanks for that Xabiachica.
> 
> *So... if we are both resident in Spain and we have wills leaving everything to each other that would be OK? I'm not envisaging my hubby dying any time soon but I think it's best to have everything thrashed out! *
> 
> Then whichever of us dies first, the other will be eligible to pay (the huge!) tax bill?


*NO!* You have to have your will written in a certain way. It is normal to have a bi-lingual will made in two columns (one English and the other in Spanish) and a statement will be inserted in the opening paragraphs of the will as follows:


> He requests his last will to be in the English language according to that which is stipulated in article 150 of Notary Law which authorises this will of double column in both Spanish and English


When it comes to the formal clauses the first one should read:


> FIRST.- He states that he wishes the disposition of his assets, rights and shares to be under the provisions of the law of his nationality as provided for under the EU Succession Regulations, 650/2012 Article 22


Article 22 is the important factor since that is the one which gives you entitlement to have the will made under the law of your country of nationality. All the other clauses require the law of the country of domicile of the assets to apply (i.e. if it is in Spain, then Spanish law applies.)

As has been already said, inheritance tax applies according to the country of residence.

HOWEVER be careful, if one is of Scottish or Irish nationality, there is still a case of reserved heirs to apply and children get the first bite, as in Spain.


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## snikpoh (Nov 19, 2007)

infomaniac said:


> Thanks everyone. I do apologise for being thick but I'm just not getting this
> 
> We will be resident in Spain (Valencia) and have wills made out for the other to inherit (with the Brussels clause).
> 
> ...


Here's a case study which may be similar to your situation;



> *I am a Foreign Resident Living in Spain. I Plan to Leave All (or Most of) My Estate to My Spouse/Partner. I Have Children (or Grandchildren) and my Parents (and Grandparents) are all Dead. Do I Still Need to Make a New Spanish Will?*
> 
> Yes, you would need to make a new Spanish will.
> 
> ...


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## infomaniac (May 27, 2013)

Thank you both-it's a bit clearer now. I think when the time comes we'll get our wills done professionally to save any hiccups.


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