A work colleague’s parents purchased a holiday home near Alicante Spain 30 years ago.(current value of approx 130,000 euros)
His father died 7 years ago but the tax office was never informed. Now that his mother has recently died,what are the IHT implications for him and his three siblings once this goes to probate. Apparently a spanish will was drawn up at the time.
I presume the Testators were both British and therefore had freedom to dispose of their assets providing they had left them by way of a Will. As there seems to be Spanish Wills, these will determine who the appointed legal heirs are for both parents. As far as the IHT is concerned the statute of limitation for the Spanish Revenue to claim the tax is over in the case of the father. As far as her mother estate is concerned same will be subject to IHT, the amount of which will depend on who the appointed legal heirs in her will are. The closer the kinship the lower the tax. Also the previous wealth of the heir may affect the tax to be paid.
Yes the parents were British and left the property to their remaining siblings via a Spanish will. I think my colleague’s query in part is driven by the fact that he would like his share of the property in a cash settlement, whether it’s by selling it outright or being bought out by his siblings. Unfortunately his siblings are unwilling to do either and instead would like to keep the property on and have Spanish wills (multiples I guess) to cover all the siblings and their families. After he makes good on his tax bill, my colleague is now unsure where he stands going forward.
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