Continuing with our “Definitive Guide (or almost) to Inheritance Tax in Andalusia”, in the following entry we will discuss what are the assets that can be added to an inheritance in Spain.
The regulations governing Inheritance Tax in Andalusia distinguish between the following assets that can be added to an inheritance in Spain:
1. Assets which are admissible as having belonged to the deceased in the year preceding his death, unless there is reliable proof that such assets were transferred by the deceased and that they are in the possession of a person other than an heir, legatee, relative within the third degree or spouse of either of them or of the deceased. It shall be sufficient to prove that, in place of the missing property, there exists its equivalent in money, equivalent value or other substitute property justifying payment.
2. Assets that may be added to the inheritance in Spain because they have been acquired in usufruct by the deceased in the three years prior to death. Those assets and rights which, during the three years prior to the death of the deceased, have been acquired by the deceased for valuable consideration in usufruct and in bare ownership by an heir, legatee, relative within the third degree or spouse of any of them or of the deceased, shall be deemed to form part of the estate. This presumption shall be rebutted by sufficient proof that the acquirer of the bare ownership paid the transferor the money or gave him assets or rights of equivalent value, sufficient for its acquisition.
3. Assets that can be added inheritance in Spain due to the transfer of the deceased’s bare ownership in the five years prior to his death. It shall be presumed that the assets and rights transferred by the deceased for valuable consideration during the five years prior to his death, reserving the usufruct of the same or of others of the acquirer, or any other life right, shall form part of the estate, except when the transfer is made as a result of a life annuity contract entered into with an entity legally dedicated to this type of operation. This presumption shall be rebutted by sufficient justification that the inheritance estate includes money or other assets received in consideration for the transfer of the bare ownership for an equivalent value.
4. Assets that may be added in cases of endorsement of securities or effects. It shall be presumed that the deposited securities and effects whose receipts have been endorsed form part of the estate, if prior to the death of the endorser they have not been withdrawn or the endorsement has not been recorded in the books of the depositary, and the nominative securities that have also been endorsed, if the transfer has not been recorded in the books of the issuing institution prior to the death of the deceased.
From Welex, we invite you to contact our specialized lawyers, who will solve all your doubts or questions related to the assets that can be added to an inheritance in Spain.