Thread: Life assurance in Spain

I've heard that before you can claim on a Spanish life assurance policy, you actually have to cough up to pay the Hacienda tax bill. Has anyone heard any differently? It certainly makes things tough for those who have to find the money from somewhere to get access to the policy funds. Just doesn't seem logical to me, especially when people are depending on the proceeds of the policy!

Don't know about this but I do know you can buy an English policy and they are generally cheaper than Spanish policies

Hi Anne

Basically, when someone dies, their bank accounts and assets are frozen until their heirs pay the inheritance tax on the estate, and I think this will apply to insurance policies.

As I remember, any life assurance policies have to be included on the inventory of the estate on which the tax will be calculated. And this is part of a document called the ‘Aceptación de Herencia’ (acceptance of inheritance) that you sign at a notary. This is the one document that finally proves the identity of the beneficiary. Once all this is done and the tax is paid, with this document to which the tax receipts are attached, you can unfreeze the assets.

In my case, as we got married in the UK and registered the marriage at the (then) Spanish consulate in Liverpool, the insurance company in Barcelona insisted on seeing the Aceptación de Herencia. And we couldn’t sign that until a copy of our marriage certificate issued AFTER my husband’s death (ie proving that we were still married when he died) was issued. This took nearly three months to come through from the Registro Central in Madrid. Only then did they pay.

I’m afraid I can’t remember all the ins and outs as I was so shattered at the time. I don’t know what your situation is but the absolute best thing you can is consult a Spanish lawyer.

I hope this helps

Valerie

What strikes me is that this information generally comes to people at the worse possible time, when exactly as you put it, you're totally shattered by the loss of a loved one. It seems a really lousy time to strike with a tax bill when people are at their most vulnerable!

Good point!
Thanks for this.
Anya

Yes, absolutely, what can I say. In my case, my husband was ill for a very long time, so we were able to prepare. Unfortunately the unexpected can happen, and it's best to be informed, and to be prepared, just in case, by sorting out access to each other's bank accounts, power of attorney, wills, living wills etc. If you have a good relationship with your bank, this helps too. If you have any property in Spain, a Spanish will is also essential to avoid complications, especially if you have heirs from a former marriage, for example.
I am just sharing my own experience, not only as a widow, but also as power of attorney for an Australian friend resident here who died a few years ago and then for her heirs.

Valerie

Originally Posted by Anne

What strikes me is that this information generally comes to people at the worse possible time, when exactly as you put it, you're totally shattered by the loss of a loved one. It seems a really lousy time to strike with a tax bill when people are at their most vulnerable!

Hi we have a property on Roda Golf in Murcia and it is in join names with a joint spanish mortagage, If one of us was to die what would be the complications.

We both have children from previous partners all boys. We have done a spainish will which passes the property to the remainding partner or if both of us die shared equally between our children.

We thought we were covered but now i am not sure. Would we have to pay inheritance tax on the other partners share if one of us dies??