Query regarding Spanish Inheritance Law

Miriam67

This is a long shot maybe? I'm trying to understand Spanish Inheritance Law, especially relating to 'usofracto'.. Unfortunately I'm in no financial position to be able to pay for a lawyer/solicitor which is what some I think are relying upon.

Step-relatives are trying to convince me to sign some paperwork to allow my stepmother who was left everything by my father some years ago via usofracto, to sell one of their flats and basically have the proceeds of that if I agree to becoming the 'owner' of the flat she will be living in until she dies. I'm presuming that this could bring me a number of problems as I don't think that one can do that under the terms of the will. Plus I'm smelling something fishy here possibly.

Anyone able to point me in some direction? They were trying to get me to skype with them and push things through on the day they telephoned me but I think I've bought myself some time by stating it was bank holiday here...

Thanks
Miriam67

Mojisola

Miriam67 wrote: »

This is a long shot maybe? I'm trying to understand Spanish Inheritance Law, especially relating to 'usofracto'.. Unfortunately I'm in no financial position to be able to pay for a lawyer/solicitor which is what some I think are relying upon.

Step-relatives are trying to convince me to sign some paperwork to allow my stepmother who was left everything by my father some years ago via usofracto, to sell one of their flats and basically have the proceeds of that if I agree to becoming the 'owner' of the flat she will be living in until she dies. I'm presuming that this could bring me a number of problems as I don't think that one can do that under the terms of the will. Plus I'm smelling something fishy here possibly.

Never sign anything you don't understand. Never sign anything that someone is hurrying you into signing.

Ask them to pay up-front for a solicitor here to explain it all to you.

If they won't, just don't sign.

Tiglath

M - it's me. Wondering if there's some kind of inheritance tax issue they're trying to avoid by having you become 'owner.' Presumably the will stipulates that you inherit the property after her death? If she's already living there and they're saying you would keep the proceeds, I'm wondering what effect that might have on any other assets that you are due to inherit from your father.

System

Usufructo is a life interest. I assume therefore that the step-mother has a life interest in the property but who was the beneficiary in the will.

RAS

I suspect that you need to find out about Spanish Property taxes as a non-resident and any other liabilities.

There are some useful links here https://www.gov.uk/how-to-buy-property-in-spain

Miriam67

Hi Tiglath,

Usofructo as far as I understood it originally was that she can enjoy the benefits of living in the properties etc until death. Upon death, the part that was my father's becomes mine and then the rest would go to her family. So, essentially a parent dies, first inheritors are the children, siblings and so on. As my stepmother never adopted me, this means that her percentage of property goes to her family. So she has no children, thus to her siblings, nieces etc and so on down the line.

When I originally looked at things, as far as I understood, if there was money, you'd be lucky if you got any as there have been many ways of this being squirrelled away, however, property could not be sold or anything like that.

She spoke to me on the phone about a year or so ago about the idea of possibly selling one of the two flats she and my father owned and then splitting the money of the sale between the two of us. I said, that it could probably be a good idea, as this would help her and would be useful to me.. This was only a verbal agreement and nothing had been signed. I also am very aware that property prices have gone down in Spain, but think that maybe the drop from 90,000Euros to 30,000euros which is what one of my aunts found out they're looking at selling the property for is a tad low. Especially as my stepmother said a while back that a friend of her nephew was expressing an interest. I don't know if she's also being taken for a ride or what as she trusts what she's told by them as they're her family.

I certainly have worries re the inheritance tax situation as I don't think they can actually do that with the law of usofracto. There won't be any more assets apart from the flat upon her death as I received some money from her which she said was from my father about a year after his death (I won't go into the details of how it came to me but suffice to say I was unable to take it out to the penny and close that account that was under her and my name rather than her do a bank transfer which would have been more logical).

In Spain you have to go through (again, as I understand it) a specific process to disinherit blood offspring. Thus their law protects blood children if there is property but again, this doesn't stop solicitors acting on the behalf of others helping wriggle stuff out and cause issues.

I'm also wondering how it all puts me if she's living there, I'm now the owner, would I then be listed as having a property in Spain, AND having someone living there tenancy-free? Wouldn't it then make me liable to have to pay for stuff? She or her family could turn round and her not live there and suddenly I'd be having to pay for things that I hadn't agreed to... I'm just feeling it's all a bit 'fishy'.

To be honest, I really DON'T want to own a property in Spain or where she and her family live - Galicia and the plan was always once she'd died I was going to get rid of the place asap. I'm wondering if I can possibly even contact a few local Estate Agents to find out a ballpark cost of the property..

Tiglath

I think it's certainly worth getting an idea of how much it might sell for at current prices. If they're trying to do a dirty on the price, that should come to light. Not sure how an inheritance like that might affect your UK situation. Good luck, m'dear.

jacklexa

I dont know if this will help you any but here goes

My good friend at work owned a house on a complex out in Spain with her husband. Her husband died suddenly and the widow had enough to deal with in this country without bothering much about the house in Spain ( the hubby had always seen to bills etc, so all this was new) anywaynearly 5 month after his death she decided to tackle the house in Spain. She had a lawyer out in Spain and discovered that she only had 6 month from her husbands death to transfer ownership solely to her name. She then had to take a trip out to Spain, visit with her lawyer the Town mayor who decided what amount of money had to be paid (In this case £14,000) as the widow had inherited the house. Add the lawyers fees and translation of documents it was just over £17,000. At the time of buying the inheritence law wasnt explained to them and it came as a huge shock to the widow.

Miriam67

This could have been if he did't have a will sorted maybe? The properties according to the will are half 'mine' upon my stepmother's death. I certainly won't have the issue with regards to waiting around to do anything with them as I'd be trying to sell them asap. Once that happened, I'm hoping that they'll be happy enough to take whatever taxes etc from that as I am unable financially to cover any of those costs unless one of my aunts has enough money to help me. So far, I'm getting from various avenues of advice - don't do it. So I'm going to be strong and stick to my guns. There won't be any real mourning when my stepmother goes so that's no issue. It'll be a relief to be honest. Then its having to deal with her family that is going to be the nightmare.

jacklexa

My friend and her husband had to have wills drawn up in Spain as well and also had to open a spanish bank account. They had to visit the town mayor on numerous occasions as apparantly the town mayor has alot of powers

She said that had she had a mortgage on the house she would have simply handed the keys back to the bank and walked away which is what alot of ex pats are doing but as the bought it outright then she has been stuck with it.

Miriam67

Yeah.. Have heard how difficult it can be for expats.. The difference in this situation is that my stepmother is and my father was Spanish. My whole family is from Spain (so my birth mother was as well) but the difference is that I don't have a Spanish passport or nationality as I didn't see the point when I got over 18 as I was born in the UK and am not thinking of living in Spain in the near future. If things do ever change, then it'd be somewhere closer to my father's family as I don't want anything more to do with my stepmother's once she's gone.

Interestingly, I spoke with a friend of a friend who is Spanish and a Guardia Civil and he thought it all sounded a bit 'iffy'.