In times of grief, handling an inheritance can become a complex and overwhelming process. Not knowing the applicable laws and the required procedures can lead to significant financial losses. Economist Gonzalo Bernardos, a professor at the University of Barcelona, offers key tips to navigate this process efficiently and protect the inherited estate. (Bernardos, University of Barcelona)
Bernardos emphasizes the importance of professional guidance. “Inheritance matters are very complicated, and saving 500 euros could cost you much more or prevent substantial gains”, he warns. Having an expert, whether a succession lawyer or a tax advisor, is essential to understand the legal and tax implications of the inheritance. A professional can:
- Guide through bureaucratic procedures: From filing documents to managing the assets, an expert can simplify the process and help avoid costly mistakes.
- Advise on accepting or renouncing the inheritance: In some cases, accepting an inheritance may entail assuming debts that exceed the value of the assets. A professional can help assess the situation and make the best decision.
- Optimize the tax burden: Inheritance and Gift Tax can be a substantial burden for heirs. A tax advisor can help minimize the impact of this tax through legal strategies.
- Resolve conflicts among heirs: Disputes among heirs are common and can lengthen the probate process. A specialized lawyer can mediate these conflicts and seek solutions that benefit all parties.
Bernardos also highlights the importance of proactive planning through a will. This legal document not only facilitates inheritance management but also allows the testator to express their wishes and prevent potential conflicts among heirs. A well-drafted will can:
- Specify the distribution of assets, avoiding misunderstandings and potential disputes among heirs.
- Name an executor: This person is responsible for carrying out the will’s provisions and managing the probate process.
- Minimize the tax burden: A well-planned will can include strategies to reduce the impact of the Inheritance and Gift Tax.
The economist warns about the risks of lifetime gifts, noting that family relationships can change over time. “Before a gift, everything is wonderful, but things can change”, he says. While lifetime gifts can be a useful tool for estate planning, it is important to consider potential long-term consequences and to have appropriate legal advice.
In short, the key to not losing money when receiving an inheritance lies in planning and professional guidance. Having an expert who can guide through legal and tax procedures, as well as preparing a well-drafted will, are crucial steps to protect the inherited patrimony and avoid unnecessary losses. Skimping on professional advice can be the best long-term investment for heirs. Consulting with an expert not only brings peace of mind in a difficult moment, but also ensures that the best decisions are made to protect the family’s interests.