If you are planning to move to and reside in Spain as an expatriate, you are not alone. We all know more than a few British expats who have decided to reside in a sunny country, and for good reason. But if you are moving to Spain and planning to retire there, there are some top factors you should consider, one of which is estate planning. Of course, you want to ensure that your loved ones’ and family’s future is as secure as possible, and you want to provide for them when you pass on. But apart from this, you also want to be sure that you can live comfortably in the country and enjoy your time there as much as possible as well. Here, then is what you should know about estate planning if you are moving to Spain as a UK expat: the top factors you should think about.
UK expats who move to another country have some significant concerns, and you shouldn’t take your concerns lightly. If you are moving to Spain, you may have already thought of leaving money to your heirs and loved ones but are worried about how they will be able to handle these assets at certain points in their lives. You may also prefer it if they receive their inheritance near the end of their career or working life, so they can make use of the funds to enjoy their own retirement and not worry about the expense of healthcare once they age. If you would like your grandchildren to get a good opportunity for education and would like to contribute to their educational fees, then you would probably want them to have access to a certain amount of capital whilst studying as well. All these concerns are valid, so the question now is: what can you do to make sure these concerns are met? The solution is quite simple: you need to find a way to make sure you have complete ownership of your fund and withdraw it and gain income from it for your own retirement years, but you want it to be set up in a way that your fund can easily pass on to your beneficiaries at the end of your life.
Considerations on tax
You also have to think about taxes. Like anyone, you probably want as much of your hard-earned money to be passed on to your beneficiaries without a large chunk of it taken away in the form of taxes. What you should know is that UK expats who live in Spain can end up dealing with both inheritance tax in the UK and succession tax in Spain, and these two tax types work very differently. Your planning for your estate should, therefore, be as tax efficient as possible as well.
The right way to plan your estate
Needless to say, what you need is a tailor-made solution to planning your estate and dealing with taxes and pension income. Fortunately, you can take advantage of tailor made pensions which can give you control over your funds and provide you with the means to gain more income for the future, as well as help you reduce your taxes. But when choosing a tailor-made plan, make sure that it is compliant with both the UK and Spain, and you have to take cross-border planning seriously, especially when it comes to changes in circumstances, tax considerations, legal considerations, and everything else.