What happens to the inheritance if the heir does not pay the Inheritance Tax
After the death of a person, their assets and assets become in the hands of their heirs. However, the process is not immediate. First, they must accept it and face the different costs associated with it, including the payment of Inheritance Tax, which must be settled in the autonomous community where the deceased resided.
The economic amount of this tax depends on factors such as the value of the inheritance, the relationship between the deceased and the heir and the autonomous community in which the tax is settled. But what happens to the inheritance if an heir does not pay these taxes?
What if I don’t pay the Inheritance Tax?
If you inherit an apartment, file a self-assessment of the Inheritance Tax, but do not pay on time, you will face the collection of fee increases that will range between 5 and 20% depending on the delay.
Additionally, it may be required the payment of interest in case your late payment exceeds 12 monthswhich will begin to count from the day following the end of those 12 months.
Other legal and economic consequences that heirs who do not pay this tax could face are:
- Garnishment: In the event of non-payment, the Tax Agency could seize the assets of the inheritance to recover unpaid taxes. It can be applied to movable or immovable property that is part of the inheritance. Additionally, it could negatively affect the beneficiary’s credit history.
- Tax penalties: You could face sanctions and fines if you do not pay the corresponding taxes within the established period.
- Loss of rights: You may lose some of the rights you have over the inheritance, such as the power to dispose of the assets or exercise some property rights.
- Legal actions: The Administration could take legal action against the heir to claim payment of outstanding taxes, and may initiate legal proceedings and lawsuits.
What if I can’t afford the payment?
In the event of not being able to pay the amount corresponding to inheritance taxes, the Public Administration has different options. mechanisms with which to defer or split payment.
In addition, it is possible to pay taxes with the money received in the inheritance, according to article 80.3 of the Inheritance and Donation Tax Regulations, which explains the deadlines and method of payment of the tax. In these cases, the financial institution in which the inheritance is deposited will issue a charge in the name of the Public Treasury for the exact amount of the tax to be settled.
