Errors related to inheritance

Inheritance is one of the topics that most people don’t think about. For this reason, errors related to inheritance are often made.

These errors can be resolved in most cases by having sufficient information or by relying on specialized professionals.

Not being aware of the deadlines set for paying inheritance taxes

Although at the time of inheritance, the heirs are in a very complicated situation, the deadlines for certain procedures must be taken into account.

The main deadline that you need to know is the one established by law for the settlement of the Inheritance Tax. The maximum time to submit it is 6 months, starting from the moment of the death of the deceased.

There is an option to request a 6-month extension for the settlement, but it must be requested within the first 5 months of the deadline.

There is only one situation in which this deadline does not apply, and that is when the Inheritance Tax does not need to be paid. This occurs when the heirs renounce the inheritance purely and simply. In all other cases, this tax must be settled and paid.

There is another tax applicable if a home is among the assets that are inherited, known as municipal capital gains tax. The deadline for payment of the Tax on the Increase in Value of Urban Land in the event of death is also 6 months from the occurrence.

Therefore, it is best to start making arrangements as soon as possible. The later heirs start, the less time they will have to settle and pay the corresponding taxes.

And, above all, it is important to take into account the 6-month period to settle taxes, to avoid receiving penalties.

Not knowing that debts are also inherited

Since inheritance is something that does not happen many times in life, we may not have much knowledge about it.

This may lead to accepting an inheritance without knowing that both the assets and rights, as well as the debts and obligations, are accepted. That is, the heirs will assume as their own all the debts that the deceased had.

To avoid this error, it is best to have specialized personnel who can advise on everything related to inheritance, rights and obligations.

Not knowing how to distribute an inheritance

Another mistake that can be made when accepting an inheritance is to believe that each of the heirs is entitled to one third of the inheritance. This is a common misconception but it is not true.

The inheritance is divided into three thirds, one of them reserved for the forced heirs, which is known as the legitimate share. If there are several heirs, this third of the inheritance is divided among each heir.

Not knowing how donations affect inheritances

Donations affect inheritances and this is something that few people know.

It is regulated in article 1035 of the Civil Code.

It specifically affects when forced heirs coincide with other types of heirs in an inheritance. In this case, the forced heir must include in the inheritance everything that he or she received from the deceased while alive, by donation or any other means. Once included, the calculation of the partition for the legitimate shares will be made.

Therefore, donations have an importance in inheritances and must be taken into account when inheriting.

Managing an inheritance without expert legal advice

Most heirs initially refuse to seek expert advice to carry out all the procedures related to the inheritance. And this can be a big mistake.

Processing an inheritance involves several steps and many documents. Furthermore, depending on the type of inheritance, it can be quite complex and can lead to errors.

In many cases, experts end up being consulted after the heirs try to deal with the paperwork and tax deadlines. If this is the case, it may result in having to pay tax surcharges on taxes or accepting an inheritance with debts that the heirs did not want.

It is highly advisable to have expert lawyers from the beginning. They will advise the heirs regarding tax payment, inherited debts, and the relationship of donations with the inheritance. As we have seen, there are some mistakes regarding inheritance that are relatively common and avoidable. Taking into account tax deadlines, knowing how the inheritance is distributed and how donations affect it, and not knowing that debts are also inherited are the most common mistakes. The best recommendation is to have specialized advice.

Further information

This article is part of our service Inheritance in Spain. Visit this section where you will find all the useful information on this topic, including a complete guide on Inheritance in Spain with a non-resident, expat or foreigner.

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