A neat solution to the inevitable problem of inheritance tax

Benjamin Franklin said that in this world nothing is certain but death and taxes. Well, one insurance policy sits at the crossroads of both—life insurance. It may not help you cheat death, but it may help manage the inheritance taxes that become due.

Your inheritance tax bill can be calculated to a fairly accurate level; here at Hyperien we have all the tables necessary to give you an indication of what your inheritance tax bill will be on your death using the following information:

The “valor catastral” of your property (this appears on your IBI bill) Value of your investments, bank account balances and other assets held here in Spain.

We would then need to know who would be inheritor of your estate here in Spain (the estate in Spain, the inheritor doesn’t necessarily need to be in Spain). There are various allowances, depending on the inheritor’s relationship with the deceased; many people will fall into groups 1 or 2: descendants and adopted children under 21, or descendants and adopted children over 21, spouses, parents and adoptive parents. The allowances vary from just under 16,000 euros for group 2 relations up to a maximum of just under 48,000 euro allowance for group 1 children (the younger the child, the more allowance they receive).

The key here is you are not avoiding inheritance tax, you are simply planning ahead without incurring expensive, on-going charges to have your estate managed after your death. You can have as many life insurance policies as you like; so if you need one for your mortgage, you can have a separate one to pay off inheritance tax, or have one larger policy, that covers both. 

Our aim is to provide you with a flexible solution to an inevitable problem. We are here to help; call Carol now for more information, on 952 895216 or email her.


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