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Spanish Wills
Spanish Wills we produce have the following features:
• They are written under the supervision of a Spanish-speaking solicitor.
• They consider only your immovable Spanish property.
• They have an English translation alongside the Spanish text.
• They are designed to be signed in front of a Notary in this country.*
• After signing they are sent to Madrid for registration in the Will registry, and the originals returned to this country.
*(Please note that Notary’s costs are not included within the Spanish Wills fees. We will provide you with contact details for a UK Notary)
Introduction
If you are resident in England or Wales, you are domiciled in this country and your worldwide estate is considered for Inheritance Tax in this country.
If you own property in Spain you need to have a Spanish Will and an English Will to complement your Spanish Will. They should be written at the same time, and be designed to complement each other. A foreign Will is as much part of your estate planning as an English Will.
Spanish Law
A Spanish citizen does not have the freedom to distribute his/her estate in the way that an English person does. As a married person, he or she is obliged by law to follow the national Spanish succession provisions, which specify that:
• A third must be given to the surviving spouse
• A third has to be distributed equally amongst the children
• The remaining third can be distributed by the testator in his/her Will as he/she wishes
As a result of this, many Spanish lawyers writing Wills for UK married couples seem to give no thought as to how the estate should be distributed. They automatically write Wills with the following provisions:
• Half is given to the surviving spouse and half is distributed equally amongst the children
The surviving spouse finishes up owning three quarters of the holiday home, while ownership of the remaining quarter is divided equally between the children. Would you write your Will this way if this was a holiday home a Torquay?
You can see from this that a standard Spanish Will can put your family at a considerable disadvantage
As a British citizen, you are not obliged to follow Spanish succession laws. You can distribute your estate in Spain as you like
We therefore recommend you take great care if you are offered a Spanish Will from another source as they can contradict your English Wills and your English and Spanish Wills can even cancel each other out.
These are quoted misconceptions
"Your English and Spanish properties are part of two separate estates, and never the twain shall meet."
Not true. You have one, world-wide estate. If you are domiciled in the UK, the value of your immovable Spanish property and any other foreign assets will be included within your estate for UK Inheritance Tax calculation purposes, even if they are covered by more than one Will.
"An English Will and a Spanish Will are two standalone documents."
Again, not true. If you write a Spanish Will whilst buying your property abroad and then come home and write an English Will with the universally standard opening phrase "… This is the last Will and Testament of me … by which I revoke all previous Wills and testamentary dispositions …" you have just cancelled your Spanish Will. Problems may also arise if the two documents contradict each other.
"I won’t pay UK Inheritance Tax on my Spanish estate because I won’t declare it to the British tax man."
We recommend you do not go there. It would be classed as tax evasion, which is a criminal offence. This is the subject of a recent government crackdown.
"We give you a free Will when you buy your Spanish property."
How do you know how much you will save? Does it consider Inheritance Tax implications? Does it say what you want it to say?
"As a UK citizen, you have to follow the Spanish succession laws."
Definitely not true. As a UK-domiciled individual you can distribute your Spanish estate however you wish. In fact it is very much to your advantage not to follow the Spanish succession rules.
The Solution
We have a very effective UK Inheritance Tax saving solution for married couples. This consists of:
• Two Spanish Wills
• Two complementary "mirror" English Wills featuring provisions to reduce UK Inheritance
Tax liabilities
• Setting ownership of your English home correctly to enable the savings in Inheritance Tax
• Two Enduring Powers of Attorney
In your English Wills you;
• Exclude your foreign property
• Nominate your choice of Trustees and Executors
• Appoint guardians for any children under the age of eighteen
• Distribute your estate as you wish
• State any preferences you may have for your funeral arrangements
In your Spanish Wills you;
• Consider only your immovable property
• Have an English translation alongside the Spanish text
• Be written under the supervision of a Spanish-speaking solicitor
• Be designed to be signed in front of a Notary in this country *
• And be sent to Madrid for registration in the central Will Registry
(* Please note Notary's costs are not included within the Spanish Wills fees)
We will visit you in your own home and discuss with you the requirements for both sets of Wills.
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