# UK and Spanish will...



## dancingspider (Mar 4, 2018)

I have investmenets in both the UK and Spain that will need to be managed if I pop my clogs.

I need separate wills in both the UK and Spain or one will suffice?

Anyone got any words of wisdom on the best way to manage this to minimise taxes/death duties?


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## davexf (Jan 26, 2009)

Hola, 

You need a will in both countries and really, a Lasting power of attorney also but for the British one, use the very cheap government website. The wills should state that they are aware of the other will for the other country 

Davexf


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## emlyn (Oct 26, 2012)

Whether you opt for cheap website will or consult a solicitor I would think depends on how complicated your affairs are.For peace of mind I would opt for legal advice.


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## snikpoh (Nov 19, 2007)

dancingspider said:


> I have investmenets in both the UK and Spain that will need to be managed if I pop my clogs.
> 
> I need separate wills in both the UK and Spain or one will suffice?
> 
> Anyone got any words of wisdom on the best way to manage this to minimise taxes/death duties?


If you have an investment bond in the UK, then it won't be tax efficient. Far better in a Spanish compliant 'wrapper'




davexf said:


> Hola,
> 
> You need a will in both countries and really, a Lasting power of attorney also but for the British one, use the very cheap government website. The wills should state that they are aware of the other will for the other country
> 
> Davexf


Why? It ceases when you die.


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## davexf (Jan 26, 2009)

snikpoh said:


> If you have an investment bond in the UK, then it won't be tax efficient. Far better in a Spanish compliant 'wrapper'
> 
> Why? It ceases when you die.


Hola 

We don't all die "just like that". Unfortunately, many of us get Alzheimer's or dementia before we pop our clogs. For the price, it makes sense if you are making a will to consider at some stage you may become a vegetable that cannot sign your name 

Davexf


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## snikpoh (Nov 19, 2007)

davexf said:


> Hola
> 
> We don't all die "just like that". Unfortunately, many of us get Alzheimer's or dementia before we pop our clogs. For the price, it makes sense if you are making a will to consider at some stage you may become a vegetable that cannot sign your name
> 
> Davexf


I agree.

In that case 2 are needed - one for financial issues and one for medical issues


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## davexf (Jan 26, 2009)

snikpoh said:


> I agree.
> 
> In that case 2 are needed - one for financial issues and one for medical issues


Thank you - each LPA costs £82-00 from memory (did mine last year while in the UK) 

Davexf


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## Juan C (Sep 4, 2017)

Be aware that a power of attorney (poder) ceases to be valid when you die. 

That applies in UK and Spain and probably everywhere.


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## Lynn R (Feb 21, 2014)

dancingspider said:


> I have investmenets in both the UK and Spain that will need to be managed if I pop my clogs.
> 
> I need separate wills in both the UK and Spain or one will suffice?
> 
> Anyone got any words of wisdom on the best way to manage this to minimise taxes/death duties?


Having a Will (even both a UK and a Spanish one) won't have any effect on minimising inheritance tax. You'd have to consult a tax expert about that. Something to bear in mind, though, is that assets held in the UK (or elsewhere outside Spain) will not be liable for Spanish inheritance tax if the beneficiaries are not tax resident in Spain. Assets held in Spain, however, are liable for Spanish inheritance tax even if the beneficiaries are non resident.

If the person/people who would be dealing with your affairs in the event of your death aren't in Spain and wouldn't have easy access to your personal papers and financial records, what would be invaluable to them (as well as a Will) is a document listing all your personal information including UK NI number, Spanish NIE, date of birth, address, information about all your pension providers with relevant reference numbers and contact details, details of all your current and savings accounts with banks in both countries including account numbers and contact details and the same for all other investments you hold, details of any life insurance or other insurance policies - plus a spare key for your property/properties. If my husband predeceases me I intend to draw one up and leave it with my brother in the UK, and will probably lodge my copy of the escritura for my property with him as well.


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## dancingspider (Mar 4, 2018)

OK guys,

Thanks for all the replies!

Further update as follows:

•	I have an ISA and share account with a UK stock broker. 
•	I do plan to transfer some if not all of this to Spain in the ‘near’ future… I guess that depends on how far and how fast property prices fall due to coronavirus. Looks like the property market is already taking a bit of a hit. I seeing daily, new large discounts on properties here…. Chances are however that I will retain some investments in the UK so will would be needed there to deal with these…
•	So, it is clear a ‘lasting power of attorney’ is required in the UK one may go a bit ‘dotty’ towards the end… One for financial issues and one for medical issues.
•	Currently have cash here in Spain, which will become a property and probably shares in the interim.
•	Consensus then that the ‘power of authority’ is no longer valid, when we pass away. In UK the executor takes over and in Spain the ‘Autonomo’ takes over.
•	I have seen that it is important that the two wills refer to each other.
•	For UK investments, UK death duties and then beneficiaries get their cut. Nothing due to Spanish tax authorities.
•	For Spanish investments, Spanish death duties and then beneficiaries get their cut. Nothing due to UK tax authorities.
•	I’m in the process of compiling a list of important contacts, bank account information, personal information. Everything someone will need to manage my affairs. 

There we are now, moved my understand forward greatly. Thank you everyone who contributed!:clap2:


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## Lynn R (Feb 21, 2014)

dancingspider said:


> •	For Spanish investments, Spanish death duties and then beneficiaries get their cut. Nothing due to UK tax authorities.


Your research may have already told you this, but the IHT system works differently in Spain. IHT is not paid by the estate before the balance is distributed to the beneficiaries. In Spain, each beneficiary has to pay IHT on whatever share of the estate they receive. It needs to be paid within 6 months of the testator's death (unless an extension is applied for) and the assets, whatever they may be, cannot be transferred to the beneficiary until the IHT has been paid. Once the IHT is paid what is called an Escritura de Herencia (Deed of Inheritance) has to be drawn up by a notary to allow the transfer to take place. If the beneficiaries are not resident in Spain, each of them has to obtain a Spanish NIE number to allow them to take possession of their inheritance.

It would probably be a good idea to explain all that to your beneficiaries so that it doesn't come as a nasty shock at a time when they're not going to be in the best shape to deal with it.


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