As we move closer to the Brexit due date many British people are increasingly anxious about what to expect. However, the reality is that even at this late stage, we don’t really know what will happen once Britain leaves the EU. What we do know is that we can’t expect it to be as easy as it is now to live and work in or even visit, another European country.
However, there are some ways that we can perhaps reduce the uncertainty. For example, when it comes to ensuring that those you love receive your property when you die. When it comes to inheritance we don’t know what to expect after Brexit. However, we do know what the situation is now if you choose to donate your property.
Making an active choice now to donate is a good alternative, in our view. Waiting to bequeathe your property when you die carries the uncertainty of post Brexit tax implications. It also means that your inheritors are required to pay tax and enter into legal procedures just at the time when they need it least.
If you donate your property you can make sure that the process is settled whilst you’re alive, preventing any misunderstandings and ensuring that arrangements are just what you had in mind. There are other advantages to donating too.
The donation process is swifter and easier than that of inheritance. This is because it is considered to be a ‘free’ act and it isn’t necessary for the same level of legal formalities that are required on a death. You can make your wishes clear and make sure that they are acted upon, saving your inheritors from the disputes that sometimes arise during the inheritance process.
Donation tax allowances are likely to be more favourable now than after Brexit. Being part of the European Union has meant that there are advantageous terms which may well be lost from March 2019 onwards.
Although donation tax allowances vary between different regions in Spain, it is true that regional governments do tend to reduce the tax and keep it as low as possible, often not charging anything at all. In most cases there is no donation tax to pay and if you take this route you know that you do not leave a minefield for your family to find their way through when you die.
There are many aspects of Brexit that we will not be able to avoid. However, as inheritance is something that we can, you would be wise to take the opportunity to do so.
Each individual case is different but we are happy to talk to you about what the implications might be post Brexit and how taking action now could keep it to a minimum.
If you would like more information about the donation process please contact our legal department. Send us an email to firstname.lastname@example.org. We will be happy to help you.