Inheritance Distribution

What is the distribution of an inheritance?

If the deceased did not leave a will, it is necessary to do a declaration of heirs,   before a notary, which officially recognizes the legal heirs of the deceased. Once this process is completed, the inheritance distribution can be formalized before a notary.

If a will exists, once the last will and testament are obtained, the inheritance can be directly distributed to the heirs named in the will.

The adjudication of an inheritance involves formalizing the division of assets in the deceased’s estate before a notary. This document specifies which assets of the inheritance will be allocated to each heir.

Additionally, it outlines the percentage of the assets to be inherited and the heirs to whom they will be bequeathed.

What is a will?

A will is a declaration of last wishes through which a person can determine what should happen to their estate after their death. It is a legal instrument regulated by our Civil Code, specifically Articles 662 to 743. It is important that this document is drafted with the assistance of a lawyer and a notary, who ensure that the will complies with legal requirements and accurately expresses the wishes of the testator.

What is the judicial process for dividing an inheritance?

The judicial process for  an inheritance awards  is considered an international succession when the deceased has died:

A) In a country different from their nationality or residence, or B) When they leave assets in a country other than their nationality or residence.

Since 2015, Regulation No. 650/2012 of the European Parliament and the Council came into force, aiming to simplify such situations.

The law of the Member State where the deceased passed away applies. However, the deceased may choose, via a will, which law will govern the succession.

The European Succession Certificate (ESC) is also important. This document is accepted by all EU member countries as proof of inheritance rights. In Spain, notaries act as the certifying bodies for this document.

Regarding the taxes to be paid, it’s important to distinguish whether the deceased was a resident or non-resident:

• Non-residents will be taxed based on the assets they own in Spain.
• Residents will be taxed in Spain on their entire estate.

After the death of a person, conflicts may arise related to the distribution of the inheritance.

In such cases, the distribution of the inheritance is carried out through the judicial process of dividing the inheritance, which occurs when there is a disagreement over any issue related to the deceased’s assets.

In this situation, the heir who disagrees with any aspect of the inheritance (distribution, value of assets, breach of will clauses, etc.) must file a legal claim with a lawyer and a court representative. This will initiate the judicial process.

What is an international succession?

An international succession occurs when the deceased:

1. Passed away in a country different from their nationality or residence, or
2. Left assets in a country other than their nationality or residence.