Estate Planning

• Making a Will – this is the usual way of approaching estate planning.  By drawing up a last will and testament the succession process can be simplified, especially in international inheritances, ensuring your assets are passed on to the beneficiaries and legatees that you choose.  In a last will you can choose the law of your nationality and thus avoid the limitations of Spanish Law, organising  your inheritance  in the most well-ordered, cost-effective manner possible.

• The Legal Inheritor – if there is no last will a legal inheritor is designated according to a set order starting with the descendants.  In certain areas of Spain which have their own regulations (Foral Law) the set order can vary from Spanish Civil Law, which may have unforseen consequences for your succession if your last residence is in one of these regions.

• Derecho Foral – do you, or a beneficiary, live in Galicia, Basque Country, Aragón, Navarra, Cataluña or Baleares?  If so, your inheritance will be ruled by Foral Law.  Since 2015, these territorial laws have not only been applied to Spanish nationals but also to expats having their last residence in one of these regions.  Apart from having different regulations regarding the legal inheritor, Foral Law may also affect issues such as the reserved share for forced heirs, the rights of the surviving partner and liability for the deceased´s debts.

• Estate Planning in International Inheritance – a key issue in international estate planning is to determine the law of which country or territory will be applied to the succession.  That of the last residence of the deceased is the default law,  foreigners who do not state they choose the law of their nationality to rule their succession in the last will (a possibility since 2015) may unintentionally leave their inheritance bound by Spanish State Law or Foral Law limitations which do not allow a completely free choice of beneficiaries or distribution of assets.

• Gifting – is it a good idea?  Considering the advantages and disadvantages of of gifting as a tool in estate planning.  These include possible tax benefits resulting from individual Comunidad Autonóma regulations, the tax consequences not only for Gift Tax but Capital Gains, Income Tax and Inheritance Tax.  Also, its effects in relation to matrimonial property regimes.

• Life Insurance – examining the consequences of taking out life insurance as a means of preparing your inheritance.

• Minors and Disabled People – the inheritance of a child or disabled person has special regulations and various options for preparing the inheritance and also once the succession has been opened.

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