Inheritance tax is progressive and therefore any action, however small, may well produce tax savings.
From our point of view, we distinguish two moments to study taxation:
- Before death. Inheritance tax planning
Knowledge of tax reductions, allowances and exemptions from inheritance tax makes it possible to minimise taxes, which is why it is highly advisable to plan the succession, both at the civil level i.e. in the will, and at the level of studying the tax impact that the testamentary dispositions will have.
In this regard, it is even more interesting to analyse the fulfilment of the requirements demanded for the 95% inheritance tax credit for business or professional activities, which is colloquially called the family business credit.
- Post-death. Tax study
If the succession has not been planned for tax purposes during your lifetime, it is advisable to study and evaluate the possibilities derived from the will or from the law itself before executing the deed of inheritance, since the first option need not be the best, if an alternative decision can result in substantial tax savings, directly or indirectly.
The fact is that one of the elements that can most influence the way in which we accept an inheritance is tax.
Unfortunately, after the reform of the Inheritance and Gift Tax approved on 24 April 2020, this tax has been modified to such an extent that it can triple the fees to be borne before this date.
Our Tax Department, with professionals trained in the Tax Administration of the Generalitat de Catalunya and, therefore, knowledgeable of the peculiarities of the tax, ensures that the tax burden is as low as possible.
Fortunately, our knowledge of Inheritance Law is so complete that, on many occasions, skilful use of it can allow us, always within current legislation, to make significant tax savings.
But, obviously, the best results will always be the result of good planning. For this reason, we try to draw up wills in such a way that not only is the inheritance distributed according to the wishes of the testator, but also prepares the ground so that in due course the tax burden is as low as possible.
Close coordination between our Civil Law and Taxation Departments makes it possible to use those legal figures that, when the time comes, allow us maximum freedom of choice and savings, adapting them according to the personal characteristics of the heirs at the time of death or the peculiarities of the tax at that precise moment. The greatest possible tax savings will always be achieved by starting with a will specially designed for this purpose.
At Gabarró Advocats -Herències- we have a tax department specialised in inheritance tax and we provide advice, study your case in a personalised manner and plan your inheritance or the inheritance you will receive to minimize the inheritance tax.