Make a Will, or make things difficult!

People often make the mistake of thinking that their assets will be easy to deal with for their loved ones when they have passed, especially if they deem their finances and assets to be quite straight forward.  What people don’t often consider is that every bank account, car, property, pension, savings account and investment will all need to be either closed or passed to the correct beneficiary, and dying without a Will can take away your choices, compounded if you are not married or in a civil partnership, or live abroad!

Dying without a Will - England and Wales

Estate worth under £322,000 - Your spouse or civil partner gets all of the estate. 

Estate worth more than £322,000 – The estate will be divided between the spouse or civil partner and the children of the deceased.

The husband, wife or civil partner gets:

-          up to £322,000 in assets, and half of the rest of the estate as well as all of the personal possessions of the deceased

-          The children of the deceased are entitled to a share of the half of the estate above £322,000.

If you are not married or in a civil partnership the estate is shared equally between the children or their descendants.

Dying without a Will - Scotland

In Scotland your spouse or civil partner gets the house up to a value of £473,000. They’ll get a lump sum of £473,000 if the house is worth more, and may have to sell off the property.

They also get:

-          furniture and moveable household goods up to the value of £29,000

-          up to £50,000 in cash

-          a third of the rest of the estate

The children will get two-thirds of the rest of the estate. 

If not married or in a civil partnership the estate is shared equally between the children or their descendants.

Dying without a Will - Spain

If a foreigner has assets in Spain, and dies without making a Will, their property will be disposed of in accordance with Spanish inheritance rules.  If there is no Will, the deceased’s nationality is irrelevant!  If you are a foreign national and have Spanish assets, your estate can be distributed according to the applicable laws of your nationality, but only if you have a Will.  So for a British national, assets can be distributed freely and according to your wishes if you make a Will.  Special wording needs to be included in the Will to ensure that Spanish forced heirship rules are not used.

If you die without a Will, in some areas, Spanish Notaries can request to make the Intestacy in the UK first, and then, to execute the order in Spain. It means that the inheritors must make the intestacy first in the UK, and bring it to Spain to execute it over the Spanish assets.

In other cases, if the Spanish Notary knows the British Intestacy system, it is not necessary to make the Intestacy in the UK.

What are Spanish Inheritance Rules?

The Spanish have “Compulsory” or “Obligatory Beneficiaries” (Herederos Forzosos), which means that the testator cannot dispose of the full inheritance freely.  In order to protect the family and provide for the children, Spanish inheritance laws restrict the testator’s freedom to leave property to anyone they please.  Spanish law requires a parent to leave two-thirds of the estate to children, even bypassing the surviving spouse.

In Spanish law, a surviving spouse keeps half of the goods acquired during marriage, and all personal gifts or inheritances which have come directly to this spouse.  Of the rest of the assets, only one-third can be freely disposed of. 

When a person dies leaving children, the estate is divided into three equal parts. 

-          One of these thirds must be left to the children in equal parts,

-          another third must also be left to the children but the testator may decide how to divide it (a surviving spouse has a life interest in this third – the surviving spouse is able to use this third for the rest of their life, but never owns the asset itself. 

-          The final third of the estate can be freely willed to anyone the testator chooses.

This is totally different from the UK Inheritance law which allows for the disposal of assets with total freedom and at the entire wish of the person (but only if you have made a Will!!!)  Imagine how much more complex this becomes if you happen to be on your second marriage and there are step children involved!

UK or Spanish Will?

It may seem easier if you make a Will in the UK, and rely on that Will to deal with your Spanish assets too.  However, there are several problems with this. 

In order to legalise a UK Will for Spain and be able to execute it (for instance, to be able to transfer property ownership, make a new escritura, register the change, and eventually sell a property), there are several steps that must be taken:

1.  A certified copy of the grant of probate must be legalised by the Spanish Consul in the UK.

2.  A Spanish translation of this certified copy must be prepared and validated by the Consul.

3.  A Spanish lawyer must be empowered to prepare a list of the assets in Spain, and to execute the Will, and pay the inheritance taxes.

4.  The Spanish Consul must prepare a certificado de ley (certificate of legal compliance), which confirms that the testator had the legal capacity to make a Will, that the Will is valid, that the Spanish Law of Obligatory Beneficiaries does not exist in the UK, that the Will has been duly proven and that the trustees named have the legal powers to administer the estate. It declares your Will effective to be executed in Spain, and authorises your lawyer to carry this out.

Due to the complicated process involved to execute a foreign Will in Spain, not to mention the expense, it is much simpler to make a Spanish Will to cover your Spanish assets and also a UK Will to cover your UK assets. It will save your inheritors time, money and a lot of stress, ensuring that your assets are distributed as per your wishes. 

 However, care should be taken when each Will is written to ensure that one does not cancel the other!  Take professional advice, a UK Solicitor based in Spain who is also a qualified Spanish Abogado would be ideal.  This will ensure that both Wills are written in the best way for you as an expat!

If you need assistance or would like to be put in touch with an English Solicitor who is a Spanish Abogado who can make both your English and Spanish Wills for you, talk to us!

 Our aim is to ensure that you are able to enjoy life while we take care of your finances, ensuring you’re set up in the most tax efficient way for your particular circumstances.  If you are thinking about how best to set up your finances please do contact us, or book a free 30 minute consultation via our website.

Speed Financial Solutions are a highly qualified and regulated financial services provider looking after clients throughout Spain and the UK.  Established in 2010, we provide a discreet and comprehensive service to individuals, and our service is tailored to suit your needs taking advantage of tactical opportunities as they arise in respect of your financial planning.

Our Principal, Andrea Speed, is a qualified Discretionary Investment Manager specialising in Investment and Risk, Taxation and Trusts,  and a qualified Pension Specialist.  Andrea is also a Fellow of the Chartered Insurance Institute (CII), which is the world’s largest professional body for insurance and financial services in the world. 

Fellowship is the highest qualification awarded by the CII (Level 7) and is universally regarded as the premier qualification.  It is a major achievement in the financial industry and demonstrates the acquisition of skills and knowledge at the highest of levels.  Along with a Fellowship, Andrea is a CII Chartered Financial Planner.

Please take a look at our website – www.speedfinancialsolutions.com

For further information contact us on Tel 951 315 271 or 951 318 529

admin@speedfinancialsolutions.com

We are happy to discuss your own situation in more detail. One of our advisers would be pleased to spend some time with you either in your home or at our office to review your current savings, investments and pensions, so do call to make an appointment. Our Financial Review is completely free of charge and without obligation.  Follow us on Facebook for regular updates.

This communication is for information purposes only based on our understanding of current legislation and practices which is subject to change and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice form a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.

Andrea J Speed FPFS (DM), M.A.

Principal, Fellow and Chartered Financial Planner

Speed Financial Solutions

26 August 2025