International Inheritances: Types of inheritances and how to claim them

An inheritance is the process by which the ownership of property, rights and obligations of a deceased person, known as the testator or deceased, is transferred to his heirs.

In the case of international inheritances, and unlike national inheritances, they are a complex legal and financial phenomenon that occurs when a person dies and leaves assets and properties in different countries. These inheritances present unique challenges due to differences in legal, tax, and cultural systems between the countries involved.

First of all, international inheritances require careful legal analysis, since each country has its own laws and regulations when it comes to succession and the distribution of assets. This means that the heirs may face a number of legal proceedings in each jurisdiction where the assets are located. Often, it is necessary to hire lawyers specialized in international inheritance law to handle these matters properly.

In addition, the tax aspects of international inheritances can be complicated. Different countries have their own tax rules on inheritance and succession taxes. This can lead to situations where the heirs must pay taxes in more than one country. It is important to have professional financial and tax advice to understand the tax implications and find the most appropriate strategies to minimize the tax burden.

Cultural aspects also play an important role in international heritages. Customs and traditions related to succession can vary significantly between different countries and cultures. This can lead to family conflicts and legal disputes if not handled properly. It is essential to take into account and respect cultural differences when dealing with an international heritage.

The proper handling of these cases implies a deep understanding of the laws, regulations and tax rules of the countries involved, as well as a sensitivity towards cultural differences. With the right advice, heirs can effectively deal with the challenges of international inheritance and ensure a fair and proper distribution of assets across multiple jurisdictions.

Situations and considerations regarding international inheritances

International inheritances are those that involve goods and properties left by a deceased person in different countries. These types of inheritances present unique challenges due to the legal, cultural, and administrative differences between the various jurisdictions involved.

When it comes to international inheritances, several types of particular situations and considerations can be identified. Here are some of the most common types of international inheritances:

• Cross-border inheritance: It occurs when the deceased had goods and properties in different countries. In this case, the succession laws of each jurisdiction where the assets are located must be considered, which can involve complex legal processes and paperwork.
• Inheritance with international heirs: When the heirs designated by the deceased reside in different countries, there may be additional implications in terms of coordination, communication and compliance with legal and tax requirements in each country.
• Conflicts of Laws: In cases where there are discrepancies between the succession laws of different countries, a conflict of laws may arise. This can complicate the determination of the rights and obligations of the heirs and the distribution of assets.
• International conventions and treaties: Some countries have signed international conventions and treaties to address issues related to international inheritances. These agreements seek to establish common rules and procedures to facilitate the resolution of disputes and the administration of inheritances in an international context.
• Double taxation: International inheritance may also be subject to tax regulations in different countries. This can result in the possibility of double taxation, meaning that the heirs must pay taxes in both the country of residence and the country where the inherited assets are located. However, many countries have agreements to avoid double taxation and allow tax credits.

Cross-border inheritance

Cross-border inheritance refers to the situation where a deceased person leaves assets or property in different countries, which poses additional challenges than those faced in a regular succession. This scenario occurs when the decedent was a citizen of one country, but owned assets in another country or had beneficiaries residing in a different jurisdiction.

The cross-border inheritance process involves the application of different legal systems, regulations and procedures, which can complicate its resolution. There are often inconsistencies between the probate laws of the countries involved, which can lead to conflicts and difficulties in determining how the deceased’s assets will be distributed.

In general, the intervention of lawyers specialized in international inheritance law and tax experts is required to properly deal with a cross-border inheritance. These professionals can help beneficiaries understand the legal and tax issues associated with inheritance and navigate the complex procedures of the various countries involved.

Inheritance with international heirs

In an international inheritance, the international heirs may be immediate family members of the deceased, such as children, spouses or parents, or even persons named as beneficiaries in the will. These heirs may reside in countries other than the deceased and may face obstacles related to inheritance laws, taxes, and other legal and administrative issues. Once the applicable law is determined, the corresponding legal procedures in each country must be followed to administer and distribute the inheritance. This may include filing documents, obtaining death certificates and other paperwork required by local authorities. In some cases, it may be necessary to appoint a legal representative or estate administrator in each country involved to act on behalf of international heirs.

Conflicts of laws

Discrepancies between inheritance and succession laws of different countries are common in international succession cases. Each country has its own legal system and regulations governing the succession and distribution of a deceased person’s assets. These legal differences can lead to conflicts and complications in determining how the decedent’s assets will be distributed among the heirs.

Disagreements may arise in various aspects related to succession. Some of the more significant differences include:

Succession rules: Countries may have different rules about who are the legal heirs and how the distribution of assets is determined. Some countries follow a civil law system that sets fixed rules of inheritance, while other countries follow a common law system that allows more flexibility in distribution based on the provisions of the will or the will of the deceased.

Spousal Participation: The way spousal participation in an inheritance is treated can vary. Some countries follow the principle of community property, where the spouses have equal rights to the assets acquired during the marriage, while other countries may follow the principle of separate property, where each spouse is the individual owner of their own assets.

Wills and testamentary dispositions: The formalities and requirements for the drafting and validity of a will may differ from country to country. Some countries may require that the will be in writing and notarized, while others may accept oral or written wills by the testator himself.

Inheritance taxes: Each country has its own tax system and may impose inheritance taxes. Tax rates and exemptions can vary significantly between jurisdictions, which can have an impact on the amount of assets the heirs will ultimately receive.

International conventions and treaties

International conventions and treaties in international inheritance play a crucial role in resolving conflicts and harmonizing inheritance laws between countries. These agreements seek to establish common rules and principles to facilitate the international inheritance process and protect the rights of heirs in different jurisdictions.

One of the most important conventions in this area is the “The Hague Convention on the Law Applicable to Successions Due to Death” of 1989. This convention aims to determine the law applicable to international successions and resolve conflicts of laws that may arise. It provides clear rules to determine which law will apply to succession in cross-border cases and establishes general principles for the protection of heirs.

In addition to the Hague Convention, there are other regional treaties and agreements that address issues related to international inheritances. For example, in the European Union, “Regulation (EU) No. 650/2012” on international successions is applied, which establishes uniform rules to determine the applicable law, recognize and execute decisions on successions in the Member States. This regulation seeks to simplify and expedite international inheritance procedures within the EU.

These international conventions and treaties may also address other aspects of international inheritance, such as the recognition and enforcement of inheritance-related documents and court decisions, the protection of the rights of heirs, and the resolution of cross-border disputes.

Adherence to these international conventions and treaties is voluntary for countries, and not all countries have ratified all existing agreements. However, those countries that have ratified them undertake to apply the provisions established therein and to cooperate with other signatory countries to guarantee adequate and fair management of international inheritances.

Double taxation

Double taxation of international inheritances occurs when the heirs of a cross-border estate are subject to inheritance tax both in the country where the deceased resides and in the country where the inherited assets are located. This can result in a significant tax burden and reduced distribution of inherited assets.

Double taxation can occur due to differences in tax regulations and tax systems in different countries. Each country may have its own legislation regarding inheritance taxes, including tax rates, exemptions and allowable deductions. By inheriting assets in different jurisdictions, the heirs may face the obligation to pay inheritance taxes in each country involved.

To address this problem, many countries have established double taxation agreements in the tax field. These agreements seek to avoid or mitigate double taxation by establishing clear rules on how inherited assets should be taxed in international inheritance situations.

These agreements usually include mechanisms to avoid double taxation, such as tax credit or tax exemption. The tax credit allows heirs to deduct or offset taxes paid in one country against taxes owed in another country. Tax exemption, on the other hand, can grant partial or full exemptions on inherited assets in certain circumstances, such as when the assets have already been taxed in another country.

In addition to double taxation agreements, there are other measures to address this problem. Some countries may have unilateral provisions in their law that allow heirs to deduct or offset taxes paid abroad. There are also international tax planning strategies that can help minimize the tax burden in international inheritance situations.

Claim an international inheritance: How to do it?

Claiming an international inheritance can be a complex process due to legal differences and procedures between countries. Here is a general guide on how you can approach claiming an international inheritance:

• Get legal advice: Find a lawyer who specializes in international inheritance or international inheritance law. This person will guide you through the specific steps you need to take and provide advice on applicable laws and regulations in the countries involved.
• Identifies the applicable jurisdiction: Determine the country or countries where the estate is located. This may include real estate, bank accounts, investments, or other assets. Identifying the relevant jurisdictions will allow you to understand the specific laws and regulations that you will need to adhere to.
• Check the will: If there is a valid will, check its existence and content. The will will state how the assets will be distributed and who the designated heirs are. Make sure you understand the provisions of the will and how they affect your rights as an heir.
• Collect the required documentation: Gather the necessary documents, such as death certificates, wills, property deeds, bank statements, among others. The required documentation may vary depending on the jurisdiction and the assets involved.
• Contact the competent authorities: Contact the competent authorities in each country, such as probate courts, public notaries or civil registries. Find out about the legal procedures you must follow to claim the inheritance and make sure you comply with the established deadlines and requirements.
• Handles the administration of the estate: Depending on the circumstances, you may need to appoint an administrator of the estate, known as an executor or executor, to manage the assets and distribute them according to legal provisions.</ li>
• Consider local legal assistance: If you are located in a country other than the country of the estate, it is advisable to seek local legal assistance in that country to facilitate procedures and ensure compliance with local laws and regulations.

Relation between international inheritances and international wills

International inheritances and wills are closely related, as wills are fundamental legal documents that determine how a person’s assets will be distributed after their death, both domestically and internationally.

A will is a written statement in which a person expresses his wishes about the fate of his property after his death. In an international context, a will can be especially important to avoid conflicts and ensure that the will of the deceased is carried out in different jurisdictions.

When a person has property or assets in several countries, it is advisable to prepare an international will that conforms to the laws and regulations of each jurisdiction. An international will may contain specific provisions on how assets will be distributed in each country and how associated tax and legal issues will be resolved.

It is important to note that inheritance laws vary from country to country, and there can be significant differences in terms of who is considered legal heirs, the rights of a spouse, children and other family members, and restrictions on the disposition of certain types of assets. . When drawing up an international will, it is essential to take these differences into account and ensure that you comply with the legal requirements of each jurisdiction involved.

In addition, international wills may include clauses related to the choice of applicable law and the appointment of an executor or executor in each country to manage succession matters properly.

Types of international wills that exist

There are different types of international wills that a person may consider when planning the distribution of their assets in multiple jurisdictions. Here are some of the more common types:

• International Single Will: This type of will is drawn up as a single document that covers all the assets and properties of the testator in different countries. It is written in accordance with the laws and legal requirements of each jurisdiction and may include country-specific provisions.
• Successive Wills: Instead of a single will, some people choose to write separate wills for each country where they have assets. These successive wills are drafted in accordance with the specific laws and regulations of each jurisdiction. Each will can address assets located in that particular country and how they should be distributed.
• Basic International Will: This type of international will is simpler and more general, and can be used when assets in different jurisdictions are not significant or complex. These wills are written in such a way that they can be applied in most countries, complying with basic legal requirements.
• Will for Specific Provisions: In some cases, it may be necessary to draft an international will that focuses on specific provisions related to particular assets or property located in different countries. These wills are used to address special situations and are written to comply with the applicable laws in each particular jurisdiction.

International inheritances in Spain: How to claim them?

To claim an inheritance in Spain, it is necessary to follow certain steps and comply with the established legal requirements. The general process for claiming an inheritance in Spain is described below:

Death certificate: The first thing that is needed is to obtain the death certificate of the deceased. This document officially certifies your death and will be necessary to start the succession process.

Will: If the deceased left a will, it is essential to obtain a copy of it. The will may have been executed before a notary public or it may be a holographic will (written in the handwriting of the deceased). If there is no will, the legal regime of intestate succession will be followed.

Obtain the certificate of last will: This certificate is requested from the General Registry of Last Will Acts and allows you to verify whether the deceased made a will and, if so, with which notary it is registered.

Declaration of heirs or deed of acceptance of inheritance: Once it is clear who the heirs are according to the will or the law, the declaration of heirs must be made before a notary or, where appropriate, the deed of acceptance of inheritance. This will formalize the acceptance of the assets and rights of the deceased by the heirs.

Tax liquidation: In Spain, it is necessary to pay the taxes corresponding to the inheritance. The main tax is the Inheritance and Gift Tax, which must be settled within six months of the death. It is important to have tax advice to correctly calculate the amount to be paid and present the settlement within the established period.

Distribution of assets: Once the taxes have been settled, the assets can be distributed among the heirs as established in the will or the law. It is possible that the inheritance partition deed is required to formalize this distribution and record the changes of ownership in the corresponding records.