Understanding the Adjudication of Inheritance in Spain: Key Differences from the English System

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Given the?significant variations in inheritance laws across countries, legal professionals dealing with cross-border estates must grasp these differences. This blog delves into the adjudication of inheritance in Spain, underlining key distinctions from the English system, a knowledge that is indispensable for effective estate management.

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Spanish Inheritance Law

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In Spain, inheritance is governed by national laws and regional variations, particularly in Catalonia and the Basque Country. The primary legal framework is the Spanish Civil Code, which, due to its intricate nature, emphasizes a system of forced heirship.

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Forced Heirship

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One of the most distinctive features of Spanish inheritance law?is forced?heirship.?This?means that a portion of the deceased's estate?is legally reserved?for certain heirs, primarily the children and, in some cases, the spouse. The estate?is divided?into three parts:

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1. Legítima: A third?of the?estate?is reserved?for the children.

2. Mejora: Another third can?be used?to improve the inheritance share of one or more children.

3. Libre disposición: The final third can?be freely disposed?of according to the will of the deceased.

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Wills and Intestacy

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In Spain, it is common for individuals to make a will. If there is no will, the estate is?distributed according to the rules of intestate succession,?prioritizing descendants, ascendants, and the surviving spouse.

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Probate Process

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The probate process in Spain involves several steps:

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1. Obtaining the death certificate: This must?be registered?in the Civil Registry.

2. Heirs' Declaration: Identifying the heirs?through a will or intestacy.

3. Inheritance Acceptance: Heirs must formally accept the inheritance.?This?is often done?via a notarial deed known as "Escritura de Aceptación de Herencia."

4. Payment of Taxes: Inheritance tax must?be paid?before distributing assets.

5. Distribution of Assets: The assets are distributed according to the will or intestate rules once taxes?are settled.

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Key Differences from the English System

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Freedom of Testation

One of the primary differences between the Spanish and English systems is the concept of freedom of testation. In England, individuals have almost complete freedom to distribute their estate as they see fit, provided reasonable provision?is made?for dependents under the Inheritance (Provision for Family and Dependents) Act 1975.?This?contrasts sharply with Spain's forced heirship rules.

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Probate and Estate Administration

In England, the courts oversee the probate process, with executors playing a central role in administering the estate. The process involves:

• Proving the validity of the will.
• Gathering and valuing the deceased's assets.
• Paying debts and taxes.
• Distributing the remaining assets according to the will or?intestacy rules.

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In Spain, notaries play a pivotal role in the probate process. The involvement of the courts is less pronounced, except in cases of disputes or complex estates. The process is generally more administrative, focusing on formal declarations and notarized documents, a unique aspect that distinguishes it from the English system.

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Inheritance Tax

Inheritance tax also differs between the two countries. In Spain, inheritance tax rates can vary significantly between regions and?are?based?on the relationship between the deceased and the heir and the value of the?inheritance. There are various allowances and reductions, particularly for close relatives.

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In England, inheritance tax?is charged?at a flat rate above a certain threshold (the nil-rate band), with various exemptions and reliefs available, such as the spousal exemption and the residence nil-rate band.

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Legal Costs and Timeframes

The costs and timeframes associated with probate can also differ. In Spain, notarial fees and taxes can make the process relatively costly, and the need for multiple official documents can extend the timeframe. In England, legal fees and court costs are involved, but the process can often be quicker, particularly for straightforward estates.

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Conclusion

Understanding the adjudication of inheritance in Spain and its differences from the English system is not just important, but crucial for legal professionals handling cross-border estates. The forced heirship rules, the role of notaries, and the regional variations in inheritance tax all contribute to a complex but structured process. By appreciating these distinctions and using their expertise, lawyers can better navigate the challenges of international probate and provide invaluable advice to their clients.

For more detailed guidance on specific cases or regional variations, consulting with a specialist in Spanish inheritance law is highly advisable. Their expertise can provide a deeper understanding of the nuances and complexities of the system, ensuring the best possible outcome for your clients.

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