8 common errors when planning an inheritance (And how to avoid them)
Planning an estate is an act of responsibility that, if done correctly, leads to a solid will, incontrovertible, that does not give rise to misunderstandings and that conforms to the 100% at the will of the testator, reducing taxes and other derived expenses. However, There are certain common mistakes when planning an inheritance that are usually made when you do not go to a professional to take care of it.. In this article we show you what they are and how to avoid them..
Content
Key Elements of Estate Planning
First of all, It is essential to carry out a inventory detailed heritage, clearly define Who will be the heirs and what part will each one receive?.
This goes together, in professional estate planning, to a tax study that allows analyzing the impact of taxes -such as Inheritance and Donations, which we talked about in this other article about How to pay the Inheritance Tax-, and take advantage possible exemptions and bonuses.
In that line, professionals can also value, depending on the case, yes fiscally it is better to make some donations while you are alive.
In our firm we are inheritance lawyers, and we guarantee optimized planning in all its aspects and that complies with current regulations. In parallel, We make sure that common mistakes are not made when planning an inheritance., which we explain below.
What are common mistakes when planning an inheritance?
Apart from not considering the basic factors that we have exposed in the previous section, there are eight common mistakes very specific when planning an inheritance, because of its implications.
Concretely, and according to our years of experience in the matter, are above all these three Whose name is it?, and the cinco from whom he inherits that we expose later.
Testator
1. Failure to write or update the will. If there is no will, it means that the inheritance has not been planned.. And without testing, assets are distributed according to the law, y not according to the will of the deceased. In addition, An outdated will can be as problematic as not having one.. Los changes in personal situation (divorce, births, acquisitions of goods…) require that the document be reviewed and adapted periodically.
2. Failure to appoint an executor. The executor is the person in charge of ensuring compliance with the testator's will.. Not naming this figure can make the management of the inheritance difficult. ineffective.
3. Forget non-testamentary transfer assets. Some assets, such as life insurance or pension funds, They are not governed by a will; They go directly to the designated beneficiaries. Thus, when planning an inheritance, It must be foreseen who or who these assets will go to..
Heir
1. Ignore the deadline for inheritance tax settlement. This tax has a maximum payment period of six months, counting from the date of death. If this is not taken into account in advance planning, and the heirs are not clear from the beginning about the deadline, they may not be paying attention to it and the deadline may expire. And if this happens, will result in an infraction that, in turn, will entail a economic sanction.
2. Not accepting the inheritance on time in the inventory benefit modality. If you want the acceptance of the inheritance to be “for the benefit of inventory”, that is to say, where possible debts would not be satisfied with one's own assets but with the assets of the deceased, is available only 30 days after death - or since knowledge of it has been known- to request it before a notary. Otherwise, the right is lost to take advantage of this regime and, if the inheritance is accepted, It has to be done in a pure and simple way.
3. Accept the inheritance without analyzing the debts. In line with the previous point, accept the inheritance pure and simple Without first analyzing the hereditary liabilities, it may mean that the heirs must respond with their assets for the existing debts..
4. Be uninterested in the consequences of inheritance taxation. Taxes are paid on an inheritance, such as the aforementioned Inheritance and Donation Tax or the municipal capital gains. And there may also be a reflection of the new situation in the income tax return.
5. Do not register inherited assets, especially real estate. Not updating the ownership of a flat, For example, in official records - such as the Property Registry or the Cadastre- can cause multiple problems.
Regarding this last point, We want to highlight that an example of this is that the heirs they will not be able to sell, rent or mortgage the property until it appears in your name.
Conclusion: do not neglect your inheritance
Lmistakes are avoidable. In this post you have been able to see in detail the common mistakes when planning an inheritance, and with that information We hope we have helped you make the best decisions in this regard.. For greater security, always, and because each case is unique, can make an appointment with us so that We will advise you personally and carry out all the “paperwork” necessary.
For more questions you can contact an inheritance specialist by clicking on the button.