Do lifetime gifts count when dividing the estate in Catalonia?

Question

José Manuel Alburquerque · Accepted Answer

It depends on the purpose. To calculate the children's forced share (“legítima”), gifts made in the last ten years count, as do some earlier ones. When the estate is divided between children who are heirs, what one of them received during the parent's lifetime is only deducted from their share if it was given on account of the forced share, for example for their first home, or if this was stated when it was given. If the gifts left a child without their forced share, that child can claim against whoever received them. To calculate the forced share Whatever the deceased gave away in their last ten years is added to the value of the estate after debts, at what it was worth on the date of death. Ordinary presents for birthdays, Christmas and similar occasions do not count. Anything the deceased gave a child on account of their forced share is added even if more than ten years have passed and is deducted from what that child is entitled to. Unless the deceased said otherwise, the same applies to anything given to a child to buy their first home or start a business. If the estate is not enough to pay the forced shares, the children affected can ask for the gifts to be reduced, starting with the most recent. Whoever received the gift can keep the asset by paying them the shortfall in cash. The claim must be made within four years of the death. In the division between children who are heirs If several children inherit, what one of them received during the parent's lifetime is deducted from their share only if it was given on account of the forced share. It is also deducted if, when it was given, it was expressly stated that it would be taken into account. This is known as collation (“colación”). The father or mother cannot impose the deduction after the gift has been made. They can, however, release the child from it, for example in the will. The gift is valued at what it was worth on the date of death. If it exceeds the child's share of the estate, the child does not have to return the difference, unless it impairs the forced share of the others. For example, a mother gave her son a car worth 30.000 euros and gave her daughter nothing. In her will she appoints them heirs in equal shares. The son does not have to deduct the car from his half, unless she said so when she gave it to him. If instead of the car she had given him money for his first home, it would be deducted, unless she said otherwise. This applies if the estate is governed by Catalan law. Under the Spanish Civil Code (“Código Civil”) it is the other way round. What a child who is an heir received during the parent's lifetime is deducted from their share, unless the father or mother exempted them from it. For the forced share, all gifts count, with no time limit. For the “impuesto de sucesiones”, the Spanish inheritance tax Anything the deceased gave the heir in the four years before their death is added to what the heir inherits, solely to work out the tax rate. Tax is not paid again on the gift, but the heir may pay more on what they inherit.