How much are the usufruct and the bare ownership worth?
For tax purposes, a lifetime usufruct is worth a percentage of the asset equal to 89 minus the usufructuary's age, with a minimum of 10 % and a maximum of 70 %. The bare ownership is worth the rest. If the surviving spouse is 75, the usufruct of a flat worth 300.000 euros is worth 14 %, that is, 42.000 euros. The children's bare ownership is worth 258.000. A usufruct for a fixed period is worth 2 % for each year, also up to 70 %.
Alburquerque Abogados
José Manuel AlburquerqueSome ages
- At 65, the usufruct is worth 24 % and the bare ownership 76 %.
- At 70, 19 % and 81 %.
- At 75, 14 % and 86 %.
- At 79 or over, 10 % and 90 %.
What it is used for
- For the “impuesto de sucesiones”, the Spanish inheritance tax. The surviving spouse pays on the value of their usufruct and the children on the value of the bare ownership, although at the tax rate that would apply to them on full ownership.
- To divide the price if all of them sell the asset together. If it is divided in any other way, the tax authorities may treat the difference as a gift.
- To work out what the children will pay when the usufruct ends, because they may then have to pay the rest of the tax.
- To value a right of use or of habitation over a home, with the same rules applied to 75 % of its value.
The value within the family
The table is the one used for the tax. The family can agree on something else, for example when exchanging the surviving spouse's usufruct for other assets, but it is advisable for the agreement not to stray far from the table so that the tax authorities do not see a disguised gift. In Catalonia, if there is no will, it is the surviving spouse who decides whether to exchange their usufruct of everything for outright ownership of a quarter of the value of the estate plus the usufruct of the family home. They have one year from the death to do so.
This answer is provided for educational purposes and offers initial guidance on the question raised. Every matter has its own circumstances and nuances that require individual assessment. For that reason, before taking decisions with significant consequences, it is advisable to consult a professional and not to rely solely on this information. Personalised advice makes it possible to apply these explanations to the specific case and to assess the options available with greater certainty.