Heritage

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Heritage

When a death occurs, the deceased's estate will need a destination.

Inheritance is more than just the set of assets left by the deceased, since it also includes the rights, obligations, and legal relationships that are not extinguished by death.

Thus, when inheriting a property that has a debt to a bank, i.e. a mortgage on which guarantees a mortgage, the heir will also inherit the debt associated with it, and will be responsible for its payment.

The heirs' first step is to check with the bank if there is a life insurance policy associated with the mortgage. Banks usually activate the insurance, but heirs should make sure that it is activated so that they can inherit the property without the associated mortgage.

Nowadays, it is common practice for banks to require the contracting of a life insurance policy that covers the debt in case of the client's death. However, the law does not require that this insurance be taken out, so it may not exist.

If there is no insurance associated with the credit, the heir will have two options:

- Accept the inheritance in its entirety, with the inherent assets and debts

- Repudiate it, via public deed or private document, stating the non-acceptance of the inheritance or legacy.

If the heir accepts the inheritance and does not have the liquidity to settle the debt associated with the property, the heir may make a new credit in his name, and may use the inherited property as payment guarantee.

Alternatively, it is also possible to sell the inherited property and use the proceeds to pay off the debt.

If the heir wishes to sell the property, he should bear in mind that it will be necessary to issue the mortgage distrain - a document issued by the Financial Institution to the mortgagee and which he should deliver to the Land Registry Office so that the mortgage registration can be cancelled - and the bank should be informed of the purchase and sale process.

HOW TO DEAL WITH THE INHERITANCE PROCESS

At the Inheritance and Divorce with Division Branch it is possible to

the habilitation of heirs the certification of heirs with the registration of the property of the estate in common in favor of all the heirs

Proof of inheritance, division and registration of the property in favor of the heirs to whom it was awarded the partition of the inheritance and registration of the property in favor of the heirs to whom it was awarded. 

WHAT ASSETS CAN BE INHERITED

The following can be inherited real estate (such as houses, land, graves, graves) movable assets (such as automobiles, motorcycles, boats, weapons, gold, works of art) other assets (copyrights, bank accounts, stocks, shares in companies, establishments, bonds, debt certificates) debts, mortgages, liens, pensions, annuities, taxes.

WHO ARE THE HEIRS

If there is no will, the heirs are (in order of preference) the spouse and descendants (children, or grandchildren if there are no children) the spouse and ascendants (parents, or grandparents if there are no parents) brothers and sisters and their descendants (nephews and nieces) other relatives up to the fourth degree (first cousins, great-uncles and great-nephews and nieces) Status.

It is only possible to know if a will exists after confirming that the person making the will has died.

It is only possible to know if a will exists while the person is still alive if they have given their consent.

To find out if there is a will in the name of a particular person, you need to request a certificate. This certificate is called "certificate about the existence of a will, deed of renunciation or repudiation of inheritance or legacy".

You can request the certificate about the existence of a will online through the services of the Institute of Registration and Notary Affairs.

HOW MUCH DOES IT COST

The online request for the certificate on the existence of a will costs 25 euros.

The certificate is issued in paper form and sent by post to the address indicated in the request.