Signing over house in Spain?

thestens

Hi, my mum owns a small house in Spain, worth about £90 000 (if it would sell, which is doubtful as things stand in Spanish property market). My husband and I maintain it, as my mum is now 88 and visits with us for a week twice a year. She pays the bills at the moment. She has discussed giving it to us now instead of us waiting to inherit it from her (she has made a Spanish will.) Does anyone know which would be the best financially - to be given it now or to wait and inherit it?? Will it count for inheritance tax in this country?

pollypenny

I imagine so. If she needs a care at any time, it's clear deprivation of assets.

Savvy_Sue

I think you need to look into this with someone who understands both Spanish and UK law, tbh.

mackemdave

Set up a UK limited company with 3 directors...You,your mum and husband.Gift the house to the company this will avoid any IHT,which in Spain is paid by the people receiving the estate...Think in Spain its 18%....It also avoids the 7% sellers tax in Spain..

Cost of setting up ltd co and gifting the house will be around £5K

Savvy_Sue

mackemdave wrote: »

Set up a UK limited company with 3 directors...You,your mum and husband.Gift the house to the company this will avoid any IHT,which in Spain is paid by the people receiving the estate...Think in Spain its 18%....It also avoids the 7% sellers tax in Spain..

Cost of setting up ltd co and gifting the house will be around £5K

that might be ace advice, but make sure you get advice on the implications of running a ltd co, filing accounts etc. I could be wrong but I don't think you can just set it up and forget about it.

mackemdave

Savvy_Sue wrote: »

that might be ace advice, but make sure you get advice on the implications of running a ltd co, filing accounts etc. I could be wrong but I don't think you can just set it up and forget about it.

You have to file annual returns in the UK but that is fairly straight forward and inexpensive.Having the company based in Spain is a lot more annually.

Having the property in a company means that expenditure...ie cleaning and a certain amount of travel can be charged to the company

gatita

In Spain it is the 'norm' to transfer assets to family 'en vida', this avoids death tax's or almost in Spain. I would definately do this a.s.a.p.

mackemdave

gatita wrote: »

In Spain it is the 'norm' to transfer assets to family 'en vida', this avoids death tax's or almost in Spain. I would definately do this a.s.a.p.

Please explain how this is done gatita...

thestens

Yes can you explain - this sounds like the way for us. Do we just do it through a solicitor? Would a house in Spain count towards assets for care homes?

pollypenny

Again, I think it would. Why would it not?

If you can afford to pay and don't, it's we poor b*****s who pick up the bill, through our taxed pensions.

gatita

Yes, do it through a solicitor, as for the house counting towards assets for a care home, I would imagine it would of course count! Just make sure any assets in Spain are covered by the Spanish will, and any assets in the UK covered by an UK will.