I'm liaising with a Spanish lawyer who is sorting out the estate of a recently deceased relative.
The lawyer has asked me to pay some fees upfront. These include: his fee (I have already transferred half of this); notary fees (for arranging other documents); land registry fee of €800 (for registering an incorrectly registered property that is part of the estate); Plusvalia (€130); plus local taxes (approx €2000) that the deceased failed to pay during the past few years.
I appreciate that all these fees need to be paid in due course. However, I would like to know whether it's normal in Spain for the beneficiary to pay ALL the fees upfront, BEFORE the estate is settled and the inheritance received?
If anyone can shed any light on this, I'd be very grateful.
Paying a lawyer upfront
Re: Paying a lawyer upfront
Further info: I am English and live in the UK. The beneficiaries are my children.
Re: Paying a lawyer upfront
Considering any inheritance tax has to be paid before you can get your hands on whats left to you it wouldnt surprise me if you had to pay upfront the costs you mention. Theres several poster on here with excellent knowledge on such subjects. Im sure they will be able to help
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- Andalucia Guru
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Re: Paying a lawyer upfront
It is normal to pay a provision of funds but make sure you get a detailed account of fees and expenses with receipts once the matter is finalised and that any surplus is returned to you. Of course, there may be a balance in the lawyer's favour!
If the property is located in Andalucía and the deceased relative is a parent there is currently no inheritance tax to pay unless the value is more than €1.000.000 (this may change once the United Kingdom leaves the EU). If the deceased is more distantly related there will be inheritance tax to pay.
If the property is located in Andalucía and the deceased relative is a parent there is currently no inheritance tax to pay unless the value is more than €1.000.000 (this may change once the United Kingdom leaves the EU). If the deceased is more distantly related there will be inheritance tax to pay.
Re: Paying a lawyer upfront
Thank you for replying elusive and Beachcomber.
Fortunately (!) the estate is worth well under the IHT threshold!
Any more thoughts, anyone?
Fortunately (!) the estate is worth well under the IHT threshold!
Any more thoughts, anyone?
Re: Paying a lawyer upfront
More info: the deceased is the children's (beneficiaries) father.
Re: Paying a lawyer upfront
The no IHT then.
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Re: Paying a lawyer upfront
Assuming "The" was meant to be "Then", I thought that was only if you were spanish tax resident. A UK tax resident would be liable to IHT - at least I think so. And you have to pay before you can sell the house.
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- Andalucia Guru
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Re: Paying a lawyer upfront
A new law was passed by the Junta De Andalucía about two years ago which gives a spouse and children an allowance of €1.000.000 on inheriting. This does not depend on fiscal residence or nationality but the fact that the property is located in Andalucía. I am assured that this will not change once the United Kingdom leaves the EU.
Re: Paying a lawyer upfront
Yeah sorry. I ment then. Fat fingers on a mobile
Re: Paying a lawyer upfront
Thanks for the extra information. Things are progressing very slowly…
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