What is a succession agreement in Catalonia?

Question

José Manuel Alburquerque · Accepted Answer

It is an agreement signed before a notary in which a person arranges their estate together with someone else. It can appoint an heir or leave specific assets. Unlike a will, in principle it cannot be changed by the person who made it acting alone. It can only be signed with a spouse or stable partner (“pareja estable”, Catalan stable partnership) and with certain relatives. It is used mainly to secure the partner's inheritance, to hand over a family business or to leave the home to someone who undertakes to provide care. Who it can be made with With a spouse, future spouse or stable partner. With children, grandchildren, parents, grandparents and other relatives in the direct line. With siblings, nephews, nieces, uncles, aunts and first cousins. With the same relatives of the spouse and with in-laws, such as a son-in-law, a daughter-in-law or brothers- and sisters-in-law. In a stable partnership, with the partner's children, parents, grandchildren, grandparents and siblings. Anyone not on this list cannot sign it, although the agreement can leave them something. Those who sign it must be of legal age, except a beneficiary on whom no obligation is imposed. What can be agreed Appointing an heir by agreement, which is known as “heredamiento”. It can be reciprocal, so that the couple appoint each other as heirs and the survivor inherits. Leaving specific assets to someone. During their lifetime, the person leaving them can only sell or mortgage them with the beneficiary's consent or, if the beneficiary did not sign the agreement, with the consent of the other signatories. Imposing obligations, such as caring for the person making the agreement, or setting a purpose, such as the continuity of the family business. Handing over all of the assets, or some of them, while still alive. How it differs from a will It is signed in a public deed and the notary reports it to the “Registro de Actos de Última Voluntad”, the Spanish central register of wills. It can only be amended or terminated by mutual agreement, in a public deed and while all those who signed it are alive. A single party can revoke it in specific cases, such as the obligations not being fulfilled or the beneficiary incurring a ground of unworthiness to inherit. The same applies if it was expressly agreed to be revocable. Whoever appoints an heir can sell their assets, but cannot give them away without the heir's consent. Appointing an heir by agreement revokes any earlier wills. Children keep their forced share (“legítima”). If the couple separate or divorce, any provision in favour of the other partner and their relatives ceases to have effect, unless otherwise agreed. As regards tax, what is received on the death of the person who made the agreement is subject to the “impuesto de sucesiones”, the Spanish inheritance tax. Anything handed over during their lifetime on signing is taxed at that point, as a succession or as a gift depending on the type of agreement. If someone who receives assets as an heir appointed by agreement sells them during the lifetime of the person who gave them and within five years of the agreement, the income tax return uses the value and date at which the giver acquired them. This applies if the estate is governed by Catalan law. For the agreement, what counts is the law of the person arranging their estate at the time of signing. The Spanish Civil Code (“Código Civil”) does not allow succession agreements, with some exceptions.