If you are going to receive an inheritance after a death, you already know that you must pay the corresponding Inheritance and Gift Tax that, depending on the type of inheritance, can be a significant disbursement.

A disbursement that makes many people who suffer a bad economic situation, have serious difficulties to enjoy this inheritance.

A situation that generates a lot of stress, seeing that there is an inheritance that could be the solution to multiple problems, but to which in order to access it will be necessary to pay an economic amount that is not always available.

This leads to the next question: can
tax-exempt inheritances
be received?

The answer is yes and no, as a number of circumstances must occur. Next, we tell you so you can take them into account in case you find yourself in this situation.

How to enjoy inheritances exempt from Inheritance Tax?


Before death

In order to receive an inheritance with the lowest possible taxation, it is key to be proactive; since there is the possibility – for example – of becoming a co-owner of a person’s bank account, before his death, in case of marriages with a community of property regime.

It is necessary to differentiate between co-owner and authorized or proxy,since an authorized person or proxy would automatically cease to be so after the death of the person. On the other hand, being a co-owner, the person would continue to have the account after the death.

In this way, once the person has died, the balance of the account could be used to pay the amount corresponding to the Inheritance Tax. Of course, so that everything is in order, it is important to reflect the balance that the account has at the time of death.

In case you had been advised to open a new account to transfer the money of the deceased person to it,from AYCE Laborytax we absolutely adviseagainst it.

Why? Because it would be understood as a donation and, therefore, a higher amount of tax would have to be paid.

This option would only be recommended in case of marriages in community of property.

Prepare the inheritance so that the person receives a bonus

Another option to receive a tax-exempt inheritance is to prepare the inheritance before the death occurs,so that the beneficiary can receive money that allows him to access the inheritance.

There are two ways to do this:

1. Appoint a beneficiary of the pension plan

If the deceased person has a pension plan,it would be advisable to name the person who will receive the inheritance benefiting from that pension plan.

The reason is none other than that this type of amounts are not integrated into the inheritance,so it would be enough only to prove the death, to receive the corresponding amount.

This amount would be charged a withholding tax for work performance,which should not be included in the annual personal income tax return.

2. Life insurance

When a person is a beneficiary of life insurance in the event of death, the corresponding amount will be integrated into the hereditary estate.

However, there is the possibility of making a partial settlement of the Inheritance Tax only for this part,using the capital received to pay the corresponding tax.

Partial self-assessment

In those cases in which the death has taken by surprise,and an inheritance has not been planned, there is the possibility of making a partial self-assessment.

As established by law, a partial self-assessment can be carried out not only with life insurance or pension plans, but also with bank loans, securities, cash and other similar cases in which a series of sufficient reasons are given to justify such self-assessment.

This is a very effective solution when the inheritance has an important monetary item or sufficiently liquidated shares.

Unplanned inheritances with low monetary items


In case of receiving an inheritance that has not been previously planned and that does not have a too high monetary item, there is the possibility of postponing or splitting it:

  1. It is possible to request the postponement of the payment for one year,although for this it is essential that after that time, you are still within the regulatory period to make the payment.
  2. In case the inheritance consists of an individual company or a property which acted as a habitual residence, it is possible to request a postponement of up to three years.

Here it will be necessary to provide a series of guarantees or bank guarantees that are capable of covering 125% of the deferred amount, plus the corresponding legal interest for delay, which is set at 7.75%, as well as the financial expenses of the constitution of the guarantee.



If you are in a situation of
receiving an inheritance
and you have problems to be able to face the corresponding Inheritance Tax but you want to advise yourself to avoid renouncing that inheritance,in AYCE Laborytax we deal with all kinds of issues related to inheritances.

Contact us and our
team of advisors
will be in charge of offering you the most effective solution.