Estate planning considerations for UK nationals in Spain

UK or Spanish will?

It is advisable to make a Spanish will to deal with your Spanish assets, since it is easier to wind up an estate using a local will. UK wills need to go through the UK probate process, and have to be notarised and translated before being accepted in Spain, all creating long delays and high costs.
You can have two wills, one for Spain and one for the UK if you retain assets there.

Succession law

Spanish succession law imposes ‘forced heirship’ rules. In general terms, children are entitled to receive two thirds of an estate’s assets; you cannot, for example, leave everything to your spouse. This regime applies to foreign nationals living in Spain by default. However, you can use European Succession Regulation ‘Brussels IV’ to opt for the succession law of your country of nationality to apply on your death instead. You must specifically state this in your will, or the distribution of your estate will follow the law of your country of residence.

Transferring your wealth

Your heirs may face probate expenses and delays in Spain and the UK, depending on where you own assets. You can mitigate this stress for your family. For instance, some investment arrangements allow you to nominate beneficiaries, facilitating the smooth transfer of funds without the need for probate.

You might wish to control when and how your heirs use your wealth and can structure your capital to provide tax-efficient benefits for you during your lifetime, while providing control and certainty after you are gone. You could, for example, delay the timing of an inheritance until your heirs reach a certain age. Ask your adviser about suitable solutions for your objectives and family circumstances.

Setting up your estate plan

It’s easy to keep delaying estate planning, but the longer you neglect it, the more you risk leaving it too late. Your estate may not be distributed as you wished, and your heirs may pay more tax than they need to have done. Act now so the right money passes to the right hands, at the right time, in the most tax-efficient way possible.

Summarised tax information is based upon our understanding of current laws and practices which may change. Individuals should seek personalised advice.
Keep up to date on the financial issues that may affect you on the Blevins Franks news page at www.blevinsfranks.com