procedures, how much must be paid, can it be paid with the deceased’s money…
He Inheritance tax It is a tribute that must be paid when an inheritance is received. It must be paid when there is a transfer of assets or rights from one person to another due to death and free of charge. This duty is regulated in Law 29/1987 and its regulation 1629/1991. However, when it comes to thinking about it, hundreds of doubts always arise that citizens do not know how to act on.
How much money do you have to pay?
Perhaps this is one of the most frequent questions. In this sense, it is essential to keep in mind that with the Law 22/2009 performance and regulatory power were transferred to the autonomous communities. This means that the amount is different depending on the region in which a person resides.
To know how much money it is necessary to pay, the calculation is obtained by adding the net value of inherited or donated assets and subtracting charges, debts and expenses.
As we have said, in each community you have to pay a different amount for the Inheritance Tax. For example, Catalonia It has bonuses ranging from 99% to 57.37% for group I, depending on the tax base. In Asturias, Inheritances are not taxed for the first two groups as long as they do not exceed 300,000 euros. Or in the case of Community of Madrid It is 99% for the first two groups.
What are the groups established by the Inheritance Tax?
These are the groups that are established for this tribute:
- Group I. Descendants or adoptees who are under 21 years of age.
- Group II. Descendants and adoptees who are over 21 years old, spouses, ascendants and adopters.
- Group III. Second group collaterals, that is, brothers, uncles and nephews or ascendants and descendants by affinity.
- Group IV. Four-degree collaterals, for example, cousins and other relationships.
Documentation necessary to settle this tax
To settle this tax it is necessary to have several notarial documents: declaration of inheritance, declaration of heirs and the will (if it exists). It is also claimed an inventory and appraisal of the assetsthat is, a report that supports the value of the property and another writing that includes all the assets and rights of the deceased person.
After this, you have to submit documentation. For example, in the case of Madrid, it will have to be done at the Virtual Tax Office of the Community of Madrid and at the taxpayer service offices of the Madrid Tax Agency.
For calculate the taxyou can use the Inheritance Tax calculator of the Community of Madrid or consult with a lawyer or tax advisor. On the other hand, it must be taken into account that The deadline to pay the tax is 6 months from the death and can be done by direct debit or cash deposit.
Can the tax be paid with the deceased’s money?
As explained by Vilches Abogados, it is allowed to “advance your own money to do so.” This means that “you can use the money in the deceased’s accounts to pay the Inheritance Tax.” The inherited money can be used to settle that debt and “access the inheritance without having to resort to loans or guarantees.”
What’s more, experts point out that “the payment can be made using funds from inheritancealthough the heirs have not yet been able to officially dispose of them.” However, this does not mean that the heirs can freely use that money to pay the tax because it is allowed with “specific authorization” which gives the power to use the money only for those purposes.
