Of all the financial issues that concern expats, taxes due on death are a major worry, particularly when the objective of accumulating assets over a lifetime to pass on to future generations can be so dramatically affected by death duty taxes.
When it comes to death we have the thorny question of “domicile” to unravel. Domicile can be difficult to shed particularly should you retain assets or interests in the UK or have only recently exited the country. Add to this the fact that as a Spanish resident succession tax is payable by your beneficiaries before they can benefit from your assets in Spain and you could end up being taxed in both jurisdictions.
So do you know what taxes your estate might be faced with on death and how these will be paid? If you have assets in the UK over £650,000 (for a married couple) do you really want a tax of 40% to be applied to the excess? Do you realise that in Spain there is no spousal exemption from tax and that on death your partner could be liable for tax on 50% of your jointly owned assets?
The good news is there are solutions that can minimise or even eradicate death taxes altogether but the important thing is to plan now rather than leave things to the last minute. The older you get the more difficult it can be to put in place an effective arrangement.
Rather than putting things off make an appointment to talk to Fiduciary Wealth on +350 200 50982 or email wealth@fiduciarywealth.gi.
