International Wills - Another Scam ?

I have recently seen a so-called 'International Will' which a client had prepared at considerable expense. Needless to say the company behind this is UK based and, as is too often the case, the Will itself is probably useless and I have set out below the correct procedure.

Whilst there is no obligation to prepare a Will in Spain, the existence of a Spanish Will is a cost effective means of simplifying the handling of your affairs. I have come across people who intend to rely upon their English Will (or, even worse, English intestacy rules where there is no Will at all) to deal with their Spanish estate. Unfortunately however, no action can generally be taken in Spain until the probate of your English estate has been finalised. This can take a very long time - irrespective of whether your English Will or affairs are complicated or straightforward. There is also the expense of preparing an official translation of the English Will and its legalisation to bear in mind, which together will cost significantly more than preparing a Spanish Will in the first place.

A closely related topic is inheritance tax. Many people are aware that the Spanish authorities impose tax penalties if matters are not dealt with quickly. You have only 6 months to pay the taxes due on the deceased's Spanish estate following the date of death, failing which a surcharge will be applied and interest will start to accrue. It is rare for the English probate to be dealt with in time to allow this deadline to be met. In addition, many people mistakenly believe that by simply waiting 4 ½ years before informing the Spanish authorities of the death, there will be no tax to pay. This is a risky approach and also means that the estate (usually comprised mainly of a house) cannot generally be sold or borrowed against during this period.

Whilst the inheritance tax rules in the UK are different from those which apply in Spain, the basic advice is that a Will should be prepared in the country in which the assets are situated. In other words if you own property in the UK then you should prepare an English Will, and if you own property in Spain then you should prepare a Spanish Will. An 'International Will' does not achieve this.

I hope the above goes some way towards clarifying the situation although it is no substitute for detailed professional advice. Please feel free to give myself or Carlos Baos a call on 966-426-185, or send an email to info@white-baos.com if you wish to discuss this or any other issue.

Marc White LL.B. (English Solicitor) C/Diana 19, 2ºD, 03700 Dénia (located at the Glorieta Square end of Marques de Campo)

© White & Baos 2008 - All rights reserved

Go back to index of articles