CDThader

I was told by a Spanish Bank manager friend, that if one of us dies, the surviving partner should open an account in their name and transfer everything from the joint account into their account before informing the bank of the death. otherwise the joint account would be frozen and as happened to a neighbour of mine, she had to borrow money until all the charges had been paid.

CD

jawg

I don't know Spanish law, but here in Canada, one of the main reasons for a joint account is to eliminate the possibility of the account being frozen. The account passes smoothly to the survivor.

CDThader

Maybe in Canada property would just pass to the spouse as in the UK. Here in Spain, I believe that the surviving spouse is only entitled to their half of the property, and has to buy their partners share. ....Perhaps someone with more knowledge could confirm about the account being frozen, and the payment on the property.

CD

Playamonte

I heard this about a partner not being able to access a joint account in the event of the others death, so I asked our local Gestor who looked quite puzzled when I asked him if this was so ?
He smiled and said of course not ! (tis what he said)

Brian

El Gordo

When the bank is informed of the death, by law they have to freeze the account, hence the suggestion to transfer the funds before informing them.
i have known this happen to several people recently.

JazminesII

I think the point in the locals don't always inform.....that is probably how they avoid certain things albeit illegally ;-))

country boy

Not if you don't tell 'em

DJinSpain

The discussion has moved away from the original post.

Inheritance tax in the UK and ISD in Spain are very different and the lesson of my blog was a sharp and expensive one for the widow involved.

Financial Pages in Spain: Expats and property owners in Spain - Your need real professional advice.
DJ

hippyshake

The law changed this year on inheritance tax on immediate family members. I can't remember the details but I think the spouse no longer has to pay or only has to pay a very small amount.

The inheritance tax on a property only has to be paid if you are planning to sell the property and only after the deed of inheritance has been signed. If you don't sign the deed, there's no tax demand. This is how Spanish people get away with it and why so many houses end up being owned by multiple family members!

My cousins are in this situation at the moment. Their mother died but as they haven't been able to sell the house (over 3 years now), their lawyer advised them to hold on to it as after 4 years you don't have to pay any inheritance tax. He also told them, at the time of my aunt's death, not to sign the deed of inheritance until they actually had a sale as you have to pay the tax once this has been done (though not after the 4 years). The change in the law came too late for them but I think now they wouldn't have to pay at all as it was their mother who died.

DJinSpain

Useful contribution Hippyshake. The ISD rules are often applied differently in the autonomous regions. Generally, any favourable treatment only applies to Spanish residents. In my example the widow was UK resident with a second home in Spain.

The good thing about your example is that it re-iterates my main point that you need professional advice. Speaking to a man in a pub will not do! Thanks.