A will is important for UK residents, yet for expats it is even more so. With interests and assets based across different countries, it is vital that your loved ones are protected in the event of your death. For Spain-based expats, the last thing you want is for grieving family members to be confused about what your wishes were – and, how the rules apply about inheritance tax (IHT) in Spain and the UK.
Category: Estate Planning
4 ideas on how to use an inheritance
Receiving an inheritance lump sum can bring a lot of mixed emotions. It can be satisfying – even exhilarating – to suddenly get more money in your account. However, an inheritance can also be a painful reminder of the loved one you have lost. It is not always easy to make rational decisions at a time of high emotions. Therefore, it helps to be ready with an inheritance “contingency plan” – where you decide, ahead of time, how you might use a lump sum if it ever arrives.
Do I pay tax in Spain on a UK inheritance?
If you are a British expat living in Spain and you suddenly receive an inheritance from a loved one back home, what happens? Do you pay UK inheritance tax (IHT), Spanish IHT or both?