Inheritance: where to start when a relative passes away (and why you shouldn’t put it off)
When a relative passes away, the personal loss is almost immediately compounded by a tangled web of administrative tasks that few people know how to handle: certificates, wills, solicitors, taxes, deadlines. It’s understandable to want to ‘put it off’ until later, but with inheritances, that comes at a cost: some deadlines start from the date of death, and letting them slip by can prove expensive.
The first documents you’ll need
Although every inheritance is different, almost all begin with gathering a set of basic documents:
- Death certificate of the deceased.
- Certificate of last will and testament, indicating whether the person left a will and with which notary.
- Certificate of life insurance policies.
- The will, if there was one; and if there wasn’t, you will need to process the declaration of heirs.
With or without a will
If the person left a will, this sets out how the inheritance is to be distributed, within the limits established by law. If no will was left, the law determines who the heirs are and in what order — this is known as intestate succession — and a declaration of heirs must be processed before any assets can be distributed. In both cases, the process involves certain formalities, and it is advisable to handle it correctly to avoid future disputes among the heirs.
The tax deadline: the biggest source of surprises
This is the part you really need to be clear about from the outset: settling an inheritance involves taxes — primarily inheritance tax and, where property is involved, council capital gains tax — and the inheritance tax return must be filed within a certain timeframe, which begins from the date of death. Leaving it until ‘when you have time’ can result in surcharges and interest. It is possible to apply for an extension, but you must do so within the deadline and it is advisable to do so judiciously.
Accepting an inheritance: it is not always automatic
Accepting an inheritance is not just about receiving assets: it can also involve taking on debts. That is why the law provides for different ways of accepting it — including acceptance subject to inventory, which protects the heir from debts that exceed the value of the inheritance. Deciding how to accept an inheritance, especially if the deceased’s financial situation is unclear, is a decision that should be made with full knowledge of the facts.
Why you should use a solicitor
A properly handled inheritance avoids disputes between heirs, tax penalties and problems that can drag on for years. A solicitor can organise the entire process — documentation, deadlines, taxes, distribution — mediate when there are several heirs with differing interests, and ensure that every step is taken in the correct manner and at the right time. And if you wish to plan your own estate whilst you are still alive, this is also a good time to seek advice: a well-drafted will saves a great deal of trouble later on.
At SF Abogados
At SF Abogados, we support families through the inheritance process from start to finish: we gather the documentation, calculate and file taxes on time, prepare the distribution and, where necessary, help heirs reach agreements. We also advise those who wish to plan their succession in advance.
Tell us about your case at www.sfabogados.com. We’ll help you sort everything out, calmly and without missing any deadlines.
