Inheritances and Gifts
Inheritance and Gift Law governs the transfer of a person’s estate following their death, as well as certain transfers of assets made during their lifetime. This is a particularly sensitive area of law, in which civil, tax and, in many cases, international aspects converge, requiring a rigorous and coordinated analysis.
Inheritances and gifts can give rise to particularly complex situations where there are several heirs, assets located in different jurisdictions, wills drawn up in different countries, or heirs who are both resident and non-resident in Spain. In such cases, it is essential to interpret the applicable legislation correctly and to coordinate civil law with inheritance tax law.
Proper planning and management of an inheritance or gift enables the transfer of assets to be organised in accordance with the deceased’s wishes, whilst respecting the rights of the heirs and complying with the legal and tax obligations arising from the succession process.
Assistance and advice on Inheritance and Gifts
BGI LAW provides legal advice on inheritance and gifts, handling probate proceedings of varying complexity, both at a national level and in cases with an international element.
The firm’s practice covers probate matters involving multiple heirs, estates of various kinds and situations requiring the correct application of the civil and tax legislation governing the probate process, as well as the resolution of any issues that may arise during the proceedings, whether out of court or in litigation.
Where an inheritance involves an international element, the firm coordinates its work with the BGI Global network, ensuring proper legal coordination between the relevant legal systems and compliance with the applicable regulations in each jurisdiction.
From its offices in Marbella, Madrid and Vigo, BGI LAW advises individuals, families and wealth management structures on the legal planning of inheritance matters.
Key services in Inheritance and Gifts
Inheritances and Gifts
Wills
Estate planning
Specific areas within Inheritance and Gifts
Inheritance proceedings
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Inheritance
- Acceptance and settlement of inheritances.
- Declaration of heirs.
- Division and distribution of the estate.
Wills
- Determination of the urban planning classification.
- Land-use changes.
- Calculation of buildability and development potential.
Donations
- Donations of property and rights.
- Legal and tax analysis of donations.
- The impact of gifts on inheritance.
Planning and family wealth
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Estate planning
- Legal framework for inter vivos succession.
- Family agreements and estate planning.
- Estate planning in accordance with the applicable regulations.
Family assets
- Orderly transfer of the family estate.
- Coordination between succession and estate structure.
- Protecting family assets.
Inheritance tax
- Inheritance and Gift Tax.
- Analysis of the inheritance tax burden.
- Coordination with related tax obligations.
Disputes and procedures
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Inheritance disputes
- Disputes between heirs.
- Contesting wills.
- Issues relating to the division of an estate.
Legal proceedings
- Legal proceedings relating to inheritance matters.
- Representation before courts and tribunals.
- Enforcement of court orders relating to probate.
Inheritance cases with an international element
- Heirs residing in and outside Spain.
- Assets situated in different jurisdictions.
- Determining the law applicable to the succession.
Work methodology
1. Situation analysis
Review of probate documents, financial circumstances and relevant background information.
2. Legal assessment
Determining the applicable rules of succession, the rights of heirs and tax obligations.
3. Action strategy
Determining the most appropriate extrajudicial or judicial route, depending on the circumstances of the case.
4. Representation and follow-up
Representation before notaries, tax authorities and judicial bodies, including monitoring of the proceedings.
Frequently Asked Questions about Inheritance and Gifts
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Is it compulsory to make a will?
It is not compulsory to make a will. However, when a person dies without a will, the inheritance is governed by the rules of intestate succession, which can make the process more complex and complicate the identification of the heirs.
What is the statutory share, and who is entitled to it?
The reserved share is the portion of the estate that the law mandatorily sets aside for certain heirs. Its scope and distribution depend on the applicable civil law and must be respected both in estate planning and in the distribution of the estate.
Can I turn down an inheritance?
Yes. The heir may accept or reject an inheritance. The decision must be made after considering the composition of the estate, the possible existence of debts, and the legal and tax implications of each option.
How long do I have to accept or decline an inheritance?
The legislation does not set a fixed general deadline for accepting or rejecting an inheritance, although there are relevant deadlines for tax purposes. In certain circumstances, the heir may be required by the court to state their decision.
What happens if an heir does not agree with the division of the estate?
Where the heirs cannot agree on the division of the estate, out-of-court solutions may be sought. Otherwise, the estate may be divided through the relevant legal proceedings.
Can I contest a will?
Yes. A will may be contested where there are grounds provided for by law, such as the testator’s lack of capacity, defects in consent or a breach of statutory provisions.
Do gifts made during my lifetime reduce my future inheritance?
Gifts made during one’s lifetime may affect future inheritance, particularly with regard to the calculation of the reserved share and the distribution of the estate amongst the heirs, depending on the applicable legislation.
How is an inheritance divided amongst the heirs?
The distribution of an estate is carried out in accordance with the provisions of the will or, failing that, in accordance with the rules of intestate succession. This process takes into account the statutory shares and the total assets comprising the estate.
Where any of the heirs has received assets or money from the deceased during their lifetime, the law may require that such transfers be taken into account when calculating the final distribution. This mechanism, known as ‘colation’, is intended to ensure equality amongst the compulsory heirs, unless the testator has expressly provided otherwise in accordance with the law.
How much is payable in inheritance tax?
The amount of Inheritance Tax depends on various factors, such as the applicable regional legislation, the value of the inherited assets, the degree of kinship and any legally provided reductions or allowances.
Can a foreign national inherit property in Spain?
Yes. Foreign nationals can inherit property in Spain. In such cases, it is necessary to analyse the law applicable to the succession and the tax implications, particularly where there are international elements involved.
Contact
Inheritance and gifts require advance planning and rigorous technical management to avoid family disputes, protect statutory inheritance rights and minimise the tax burden on the transfer of assets.
The team at BGI LAW provides legal advice in this area, taking into account the client’s personal and financial circumstances, and assessing the most appropriate course of action in accordance with the law.
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