Can You Refuse an Inheritance in Spain?

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Many people assume that if somebody leaves them something in a Will, they have no choice but to accept it. That is not necessarily the case.

There are circumstances where a person may decide that they do not want to inherit.

Why would somebody refuse an inheritance in Spain?

There can be many reasons. For example:

• the deceased had substantial debts;
• the heir does not want the property;
• there are several properties and the heir does not want to become involved;
• the inheritance would create financial or tax problems; such as an expensive inheritance tax bill.
• the family has agreed that another person should receive the inheritance; or
• the heir simply does not want it.

For example, a parent may leave a Spanish property to three children. One child lives in Spain and wants the property. The second lives in the UK and does not want to have anything to do with it. The third child also does not want the property. There may be legal options available, but the family should obtain advice before anybody signs anything.

Can I just tell my family that I don’t want my inheritance?

No. Simply saying “I don’t want my share”does not necessarily amount to a legal renunciation of an inheritance.There is a formal legal process involved.

It is therefore important to obtain advice before signing documents or making arrangements with other family members.

What if I have already accepted the inheritance and change my mind?

This is particularly important. Renouncing an inheritance and giving away something that you have already inherited are not necessarily the same thing.

If you accept an inheritance and then decide to transfer your share to another family member, this may be treated differently for legal and tax purposes. For this reason, you should decide how you want to proceed before completing the inheritance wherever possible.

What happens if there are debts?

This is one of the most important reasons people ask about renouncing an inheritance.

If you are told that a relative has died leaving a Spanish property, but you also know that there are substantial debts, do not simply assume that you should accept the inheritance and sort everything out afterwards.

The estate should first be investigated. We need to know what assets there are, what liabilities exist and who the heirs are.

Only then can you be advised about the available options.

Can one heir give their share to another heir?

Sometimes families think that the easiest solution is:

“I don’t want my share, so I’ll just give it to my brother.” But this may not be the same as formally renouncing the inheritance. It may have different legal and tax consequences.

This is why we always recommend obtaining advice before making an agreement within the family.

Our advice

If you have been named as an heir in Spain but you do not want the inheritance, do not simply sign the inheritance documents without taking advice.  Then think you can easily pass it on.

First establish:

1. What assets are being inherited?
2. What debts and liabilities exist?
3. Who are the other heirs?
4. What does the Will say?
5. What are the inheritance tax consequences?
6. Is formal renunciation the best option?

Once these questions have been answered, you can make an informed decision. We would be happy to help if you contact us.

If you are dealing with an inheritance in Spain and are unsure whether you should accept or refuse it, contact us before signing anything.

It is much easier to obtain advice before an inheritance has been accepted than to try to undo matters afterwards!