How to pay the Inheritance Tax
One of the procedures that must be carried out when a family member dies is the inheritance tax settlement. A management that usually brings more than one headache due to all the paperwork it entails..
In general, los heirs and legatees They are in charge of carrying it out, but those people who are beneficiaries of a life insurance contract when the insured dies. If you do not comply with these tax obligations, a serious tax violation would be incurred, that would entail a penalty. With the addition of not being able to receive the part of the inheritance that corresponds to us.
How is the Inheritance Tax settled??
Content
There are two ways to proceed with the settlement of this tax:
- Self-assessment: The interested parties themselves determine the amount of the tax debt through self-assessment of the tax. for which, The Model must be submitted 650. All those interested in the inheritance must be included in this document and give their consent.
- Administrative liquidation: the necessary documentation must be submitted, but in this case the Tax Administration is asked to establish the amount of the debt. After, The Administration will inform the heirs of the amount and the deadline to make the deposit.. The only drawback of doing it this way is that if there are guarantees, deposits or current accounts among the assets of the inheritance, Banks will not allow delivery until payment or tax exemption is justified. Y, for it, It is necessary to wait for the Administration to send the results of the actions.
What documentation is needed for the settlement of Inheritance Tax?
In order to carry out the settlement of the Inheritance Tax, It is necessary to gather a series of documents and certain information.
- Death certificate: This document must be requested at the Civil Registry, providing identification data and the date of death of the deceased.
- Copy of the Certificate of Last Will Acts: The purpose of this document is to inform whether status had been granted or not.. If so, The notary will tell us where we should go to request a photocopy of it.. Otherwise, “declaration of heirs” is necessary.
- Preparation of inventory and valuation of assets, obligations and rights members of everything that is inherited. Then, The assets will be awarded to each heir.
Where is the Inheritance Tax settled??
As we have said, The Inheritance Tax must be submitted through a self-assessment or declaration before the Administration of the place where the deceased person habitually lived..
The habitual residence will be considered the one in which the deceased had lived the longest within the last 5 years, except for Navarra and the Basque Country, where this time is reduced to one year. If you lived abroad, This tax must be paid to the State and not to the Autonomous Communities.
What is the deadline to pay the Inheritance Tax??
The deadline to be able to settle the Inheritance Tax and receive the inheritance is 6 months since death. During this period, the procedure must be carried out before the Tax Administration that, in these situations, corresponds to the autonomous community in which the deceased lived. From the 6th month, The Treasury will begin to apply a series of increases in the fee.
It must be taken into account that in some regions you may lose the right to certain bonuses if the tax settlement is made after the deadline. Besides, if an extension is requested, it will be necessary to pay the delay interest that corresponds to the date on which we present the self-assessment.
On the other hand, It should be mentioned that it is possible request deferral or installment of payment before they have passed 5 months from date of death, and provided that we ensure this payment to the Administration through the provision of some guarantee.
As for the prescription period, is from 4 years, 6 months and 1 day since death, unless the Administration has taken some action that interrupts it, how to send a notification to interested parties.
For the Verification of Life Insurance it is better that you trust our Inheritance Specialists
What is the penalty for not paying the Inheritance Tax??
If they pass 6 months and we have not paid the Inheritance Tax, or in the case of having requested a division, a postponement or extension of the deadline, they have not granted it to us, The Treasury will begin to apply a series of increases in the fee.
- If the settlement is carried out among the 6 and the 9 months after death, the sanction will be 5% of the quota.
- If it is done among the 9 and the 12 months after, the surcharge will be 10%.
- If it is done among the 12 and the 15 months, will be from 15%.
- If it is done among the 15 and the 18 months, will be from 20%.
In our next article we will talk about the procedures to follow, how to process changing the name of an inherited apartment.
For more questions you can contact an inheritance specialist by clicking on the button.