Inheriting property abroad where there is also a right to remain

SeekingAnswers7842

Hi,

My daughter stands to inherit a 1/3 share of a house in Spain after her gran passed away (her gran lived in Spain). Another family member has a right to remain in the property as long as they stay in Spain, as I believe this is stated in the will (and they will also inherit a 1/3 share).

My daughter could end up inheriting an asset which she has no control over, no income from, yet potentially face bills for repairs, insurance, tax etc.

We are not seeking to make profit from or evict the family member who will stay in the property. However, I am concerned that I am being asked to potentially tie my daughter into a situation where she is liable for monies she cannot pay (as my daughter is a minor, I am acting on her behalf during the inheritance process and I don't think I have the right to force that upon her).

Does anyone know the legal situation with this? I know one answer might be to ask the 'tenant' to pay some element of rent for the 1/3 share and use this to fund the share of future repair bills etc. However, as the family member probably wanted the entire house left to them in the will they could object to paying anything.

Any ideas how best to resolve this? Does anyone have experience of a similar situation?

Thanks

elsien

I’m going to take an educated guess that the will may fall under Spanish law, in which case you would need to see what their legal system says about a minor giving up an inheritance, or any other factors to take into account.

Did the will say anything about covering ongoing costs, et cetera?

Who owns the final third? 

Keep_pedalling

Was this a Spanish or UK will? This would not be a problem if it was a UK property as the will would create an immediate post death interest trust and your daughter would not actually inherit until the life tenant moved out but as I understand it Spanish law does not recognise trusts as a legal entity. 

What is the relationship of the occupier to the deceased and your daughter? Would they be in a position to buy out her share? 

SeekingAnswers7842

Update: I've not yet seen the actual will, but do understand it's general content.
Yes, it is a Spanish will to the best of my knowledge (at least it is being handled via a Spanish lawyer, so I assume so).
I think the will may have been poorly written and believe it makes no mention of covering ongoing costs or repairs.

The occupier is the son of the deceased (the occupier is also my daughter's uncle). As my daughter's own mother passed away 18 months ago, anything left to her now flows down to my daughter. The third beneficiary is my daughter;s aunt. Essentially the 3 children of the deceased were named in the will as inheriting 1/3 each.

I don't think my daughter's uncle would be keen to buy out the share, nor in a financial position to do so.

dever33

A right to remain in Spain usually means the person can live in the property for life, even if your daughter owns part of it. Your daughter would still be a co-owner, but with no practical control and no ability to rent or sell her share while the right to remain exists.

Co-owners are normally responsible for their share of ongoing costs, so repairs and taxes can become an issue. Asking the occupant to contribute is possible, but they are not always legally required to unless the will or Spanish law says so.

You can speak to a Spanish inheritance lawyer about placing the property share into a trust or declining the inheritance on your daughter’s behalf if it is not in her interest. This is common when a minor would inherit a costly asset they cannot use.

Keep_pedalling

I would hope that the one person who is actually benefiting from this inheritance is going to agree to pay for the upkeep while he is living there. There is obviously no way a minor with no income can be expected to contribute. 

Do you know the value of the property?

SeekingAnswers7842

@Keep_pedalling

I'm unsure of the value at this stage. Maybe 120k Euros? (bit of a guess there). Obviosuly that would be split 3 ways in terms of the share. I do know the property needs some remedial work, but nothing structural e.g. new septic tank.